Theoretical and empirical research of trade-off between reporting costs and tax costs in earnings management process
Grant-in-Aid for Scientific Research (C)
|Allocation Type||Single-year Grants|
|Research Institution||Kobe University|
SUZUKI Kazumi Kobe University, Graduate School of Business Administration, Associate Professor, 経営学研究科, 助教授 (90235937)
|Project Period (FY)
2003 – 2004
Completed(Fiscal Year 2004)
|Budget Amount *help
¥1,600,000 (Direct Cost : ¥1,600,000)
Fiscal Year 2004 : ¥500,000 (Direct Cost : ¥500,000)
Fiscal Year 2003 : ¥1,100,000 (Direct Cost : ¥1,100,000)
|Keywords||tax planning / trade-off between reporting costs and tax costs / earnings management / doctrine of definite settlement of accounts / requirements for reckoning the amount into revenue or expense for accounting purposes / 財務報告コスト / 税コスト|
1.International comparison between financial accounting and taxation
There are two categories of institutional relationship between financial and tax accounting. One is independence. The other is dependence of taxation on financial accounting. The former involves UK, US, Ireland, Denmark, and the Netherlands, etc. The latter involves Germany, France, Austria, Sweden, and Japan etc. However, I find that a tendency of the conformity in practices in not only the countries in the latter category but also even in the countries in the former category, so that considering tax implications are likely to intervene into financial reporting.
2.Discussion of the doctrine of definite settlement of accounts in Japan
I classify the contents of so-called "the doctrine of definite settlement of accounts" into three categories : (1) Institutional dependence of assessment of taxable income on financial accounting, (2) requirements for reckoning the amount into revenue or expense for accounting purposes, and (3) tax rules as de facto standards on behalf of rough accounting standards. Furthermore, the first category should be subdivided into (1) formal dependence in procedures and (2) treatments and judgments for financial reporting purposes are automatically carried into assessment of taxable income.
3.Order of priority between financial reporting and taxation in small or middle size companies
In general, although taxation takes precedence over financial reporting, small or middle size firms with relatively larger size or plans going public tend to regard financial reporting as important.
4.Analytical research of influences of the institutional relationship between financial and tax accountings in Japan.
I specific the conditions that the trade-offs between tax costs and nontax costs are effective and construct the model of the effect of the trade-offs on deterring the managers from earnings management.
Research Products (4results)