 The amortization of fixed assets in terms of deferred taxesMihaela Tulvinschi
Theoretical and Applied Economics, 2012, vol. XVIII(2012), issue 7(572), 53-64 Abstract: The effects of amortization on the presentation of the financial statements are quite noticeable when calculating the profit before tax as well as for its recognition in the balance sheet. Accounting amortization changes the value of the fixed assets itemized in the assets column, while the related expense changes the profit and loss account. Tax amortization does not affect the performance of the enterprise, but only the taxable amounts. The differences between accounting amortization and tax amortization generate temporary differences that are either taxable or deductible, and these are matters that will be analysed under circumstances when the deferred tax method is applied. The recognition of the value of the deferred tax in the profit and loss account for each type of temporary difference would be a step towards the separation of financial accounting from taxation. Keywords: amortization; revaluation; liabilities; assets; fixed assets; deferred tax. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:7(572):y:2012:i:7(572):p:53-64 Access Statistics for this article Theoretical and Applied Economics is currently edited by Mircea Dinu More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC. |
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