The Impact of Fair Value Concept Appliance on Corporate Profit Tax: Case of Croatian Companies from Real Sector

Danimir Gulin (), Hrvoje Perčević () and Marina Ercegović ()
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Danimir Gulin: University of Zagreb
Hrvoje Perčević: University of Zagreb
Marina Ercegović: University of Zagreb

A chapter in Eurasian Economic Perspectives, 2020, pp 49-64 from Springer

Abstract: Abstract The application of fair value concepts in measuring company’s assets and liabilities results in corresponding accounting and tax effects. The main objective of this chapter is to analyze the interdependence between the accounting effects of the fair value concept application and the corporate profit tax on the case of Croatian companies from real sector for the period from 2010 to 2016. The research was carried out of 96 large-sized companies, and 369 medium-sized companies, which make a total of 465 companies. The data needed to achieve the purpose of the chapter are collected from publicly available financial statements of Croatian companies from real sector in the period from 2010 to 2016. The interdependence between accounting effects of the fair value concept application and corporate profit tax liability are analyzed by regression analyses. According to the research results, descriptive and inferential statistics, it can be concluded that fair value concept is not widely used in Croatian company’s from the real sector for the period observed. Therefore, the accounting effects of the fair value concept cannot have high impact on corporate profit tax liability. According to the regression analysis, only the model for the deferred tax liability is good with one significant variable.

Keywords: Fair value concept; Corporate profit tax; Croatian real sector; Financial position; Financial performance (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-030-53536-0_4

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DOI: 10.1007/978-3-030-53536-0_4

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