Analyzing the relationship between the accounting and tax systems

Abstract

This paper analyzes the relationship between accounting and tax systems through a comparison of two representative countries, namely the United States and Finland. It also identifies the specific differences between these two systems that result in different approaches to revenue recognition. These differences stem primarily from two factors: the distinct underlying bases and the different objectives of the accounting and tax systems.
Keywords
tax system accounting system difference recognition revenue expenses

References

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Richardson, M. E. (1955). Accounting Theory and Taxation. http://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=1665&context=tax