Interaction between tax and accounting practice: Accounting for stock-in-trade

Masayoshi Noguchi

Accounting History Review, 2005, vol. 15, issue 1, 1-34

Abstract: This paper studies the issue of interaction between tax and accounting practice through an examination of the process followed by the Institute of Chartered Accountants in England and Wales (ICAEW) when formulating Recommendation on Accounting Principles (RoAP) No. 22 as a replacement for RoAP No. 10. We show that the ICAEW had a clear intention of persuading the Board of Inland Revenue of the legitimacy of replacement cost as a basis of stock valuation, and that the preparation and publication of RoAP 22 succeeded, to a significant extent, in achieving that outcome. We also reveal that RoAP 22 appears to have affected the way in which some companies valued their stock and how their bases of stock valuation were disclosed in corporate published accounts.

Keywords: Recommendations on Accounting Principles; Institute of Chartered Accountants in England and Wales; Board of Inland Revenue; stock valuation; replacement cost (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (3)

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DOI: 10.1080/09585200500032701

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