Český finanční a účetní časopis 2012(3):81-92 | DOI: 10.18267/j.cfuc.324

Method of Converting Accounting Data for Tax Purposes in Relation to Long-term Tangible Property

Daniela Kynclová

Ing. Daniela Kynclová - účetní metodik. Účetní závěrka a externí výkaznictví, ŠKODA AUTO, a. s., Tř. Václava Klementa 869, 293 60, Mladá Boleslav; <daniela.kynclova@skoda-auto.cz>.

This contribution focuses on the current issues related to converting accounting data for tax purposes. The topic was selected with consideration for the needs of business practice and the absence of findings in the examined area, which relates to ensuring relevant data for tax purposes for businesses reporting their accounting data for statutory purposes based on the International Financial Reporting Standards (IFRS) in the economic and legal environment of the Czech Republic. The aim of the contribution is to present a proposed method of converting accounting data for tax purposes in relation to long-term tangible property. For the purpose of fulfillment of the goal, an extensive comparison of affected accounting systems and a content analysis of the obtained information were performed. The proposed conversion method itself is a synthesis of findings from content analyses and the results of an evaluation of technical performance of conversion using a method involving multi-criteria evaluation of different variants. The result is a generally valid approach for the conversion of accounting data reported based on the International Financial Reporting Standards to data reported based on Czech accounting legislation for tax purposes.

Keywords: Conversion; International Financial Reporting Standards; Czech accounting legislation; Long-term tangible property.

JEL classification: M41

Published: October 1, 2012  Show citation