REFLECTION OF TAX DIFFERENCES IN ACCOUNTING POLICIES AND REPORTING OF COMPANIES

Abstract

The article is devoted to topical issues of reflecting tax differences in the accounting policy and reporting of an enterprise. Regulatory and legal acts governing the rules for reflecting tax differences in accounting policy and financial reporting are analysed. The article examines the peculiarities of reflecting information on the accounting of tax differences in accounting policies and the subsequent impact of the proposed accounting model on the preparation of objective and reliable financial statements. A method for improving the accounting of tax differences is proposed to further simplify analytical activities related to tax differences. The article examines the key principles of accounting policy in terms of tax differences and the rules for reflecting them in enterprise reporting. Accounting policy is the foundation on which all enterprise accounting is based. And the order on accounting policy is the first and main document in an enterprise that regulates the procedure for maintaining accounting records. Every enterprise is faced with the question of what accounting policy is. The article analyses that the legislation does not provide for separate primary documents for recording tax differences, therefore enterprises do not reflect tax differences in a separate document and they can only be seen in the financial statements. Thus, only the prescribed rules for accounting and reflecting tax differences in accounting documents can help tax management in analysing the cost component of the enterprise and future financial results. Several options for recording tax differences were also proposed, namely preparing an accounting reference when transactions arise that give rise to tax differences, specifying the type of differences and the amount that will be included in the financial report for adjusting the financial result, and making changes to the Chart of Accounts by adding sub-accounts that will be transitional for accumulating information on adjusting the financial result before taxation for all types of differences. These options will make it possible to perform analytical actions and minimise the risk of errors when completing financial statements.