DEFERRED TAXES GENERATED BY THE CAPITALIZED INTERESTS IN THE AMOUNT OF THE FIX ASSETS IN THE CONTEXT OF MEETING THE PRINCIPLE OF PRUDENCY

Paliu – Popa Lucia and Cosneanu Lavinia
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Paliu – Popa Lucia: “Constantin Brancusi” University of Targu-Jiu, Romania
Cosneanu Lavinia: West University of Timisoara, Romania
Authors registered in the RePEc Author Service: Lucia Popa Paliu

Annals - Economy Series, 2015, vol. 4, 217-221

Abstract: According to the General Framework for preparing and presenting the financial statements elaborated by IASB, the utility of information is provided by attributes (qualitative features), such as: intelligibility, relevance, credibility and comparability. For being credible, the financial information shall be erroneous, shall not be biased or deforming the patrimony, and one of the elements representing and defining the information credibility is the prudency. Thus, the prudential accounting treatments affect, on the one hand, the accounting information relevance and credibility, and on the other hand, equally, both the producers as well as the users of the financial information, due to the economic consequences which are generated. From this perspective and considering that the implied economic agents are not neutral in terms of their option concerning the neutral accounting practices, prudent or aggressive, we opined that it is useful to conduct a study aiming the relevance of the accounting information related to the deferred taxes generated by the capitalized interests in the amount of the fix assets, recognizing the value of these taxes having as result the compliance with the principle of prudency within the accountancy. In this context, compared to the dominant accounting systems, respectively the continental system and the Anglo- Saxon system, within which the accounting information is characterized as legal, respectively addressed to the external users, especially to the investors, the conducted study aimed the following directions: the main differences between the provisions of the national, European, Anglo-Saxon accounting regulations and those of the international referential related to the prudency; the occurrence and evolution of the deferred taxes generated by the capitalized interests in the amount of the fix assets; informational benefits of the accounting prudency concerning the reflection of the deferred taxes established by the capitalized interests in the amount of the fix asset, directions on whose structure we conceived the conducted study, such that the modeled reality to be correctly and reasonably represented for the users of the financial statements.

Keywords: prudency; corporate tax; deferred tax; IAS; temporary differences (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2015:v:4:p:217-221

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