Abstract
Original language | English |
---|---|
Pages (from-to) | 65-81 |
Journal | Scientific annals of economics and business |
Volume | 63 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2016 |
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Keywords
- Accounting principles
- Financial statements
- Corporate income tax
- Lithuanian companies
Cite this
Influence of rules for computing corporate income tax on the ccuracy of financial statements of Lithuanian companies. / Černius, Gintaras; Birskyte, Liucija; Balkevicius, Arturas.
In: Scientific annals of economics and business, Vol. 63, No. 1, 2016, p. 65-81.Research output: Contribution to journal › Article
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TY - JOUR
T1 - Influence of rules for computing corporate income tax on the ccuracy of financial statements of Lithuanian companies
AU - Černius, Gintaras
AU - Birskyte, Liucija
AU - Balkevicius, Arturas
PY - 2016
Y1 - 2016
N2 - Companies in Lithuania have to follow Business Accounting Standards (BAS) when preparing their financial statements. Recording financial transactions according to BAS ensures that the information a company shares with potential lenders and investors gives a true and fair view of its business situation. However, the tax law prescribes its own set of accounting rules, which can result in a difference between what a business shows in financial statements and what it reports on its tax returns. This paper examines whether Lithuanian companies predominantly use tax accounting principles that migrate into their financial statements to create an inaccurate picture of business performance. The method of experts’ evaluation was chosen for that purpose. The results indicate that Lithuanian companies tend to heavily rely on accounting principles prescribed in corporate income tax law thus distorting information contained in financial statements. The paper contributes to the scarce literature on this issue of high relevance to both academics and practitioners.
AB - Companies in Lithuania have to follow Business Accounting Standards (BAS) when preparing their financial statements. Recording financial transactions according to BAS ensures that the information a company shares with potential lenders and investors gives a true and fair view of its business situation. However, the tax law prescribes its own set of accounting rules, which can result in a difference between what a business shows in financial statements and what it reports on its tax returns. This paper examines whether Lithuanian companies predominantly use tax accounting principles that migrate into their financial statements to create an inaccurate picture of business performance. The method of experts’ evaluation was chosen for that purpose. The results indicate that Lithuanian companies tend to heavily rely on accounting principles prescribed in corporate income tax law thus distorting information contained in financial statements. The paper contributes to the scarce literature on this issue of high relevance to both academics and practitioners.
KW - Accounting principles
KW - Financial statements
KW - Corporate income tax
KW - Lithuanian companies
U2 - 10.1515/aicue-2016-0005
DO - 10.1515/aicue-2016-0005
M3 - Article
VL - 63
SP - 65
EP - 81
JO - Analele Stiintifice ale Universitatii Al I Cuza din Iasi - Sectiunea Stiinte Economice
JF - Analele Stiintifice ale Universitatii Al I Cuza din Iasi - Sectiunea Stiinte Economice
SN - 0379-7864
IS - 1
ER -