"The Relationship Between Accounting And Taxation Insight The European Union: The Influence Of The International Accounting Regulation "

Abstract

In this paper it is realized an overview of the impact of IFRS over European accounting environment in terms of tax-accounting link. Based on previous studies conducted regarding the relationship between accounting and taxation to individual financial statements, it is developed a theoretical framework regarding the differences between accounting profit and tax profit as starting point of this link. The adoption of IAS/IFRS in the European Union had an important impact over the accounting environment in countries where it is a binding link between accounting and taxation, this impact being in the sence of decreasing the link. The last part of this paper is focus on the Romanian accounting environment, the analysis concludes that in Romania, the adoption of IAS/IFRS had a strong influence, in the present the accounting regulation being conforming with the European Directives but with important influence of IAS/IFRS. Introduction Since the current trend of an integrated global economy, the accounting, tax and economic issues cannot be treated only in the main jurisdiction; they have become important factors of a complex global mechanism. This mechanism appears to maintain the heterogeneity rather than homogeneity of constituent items. In the search of new opportunities and benefits, the international companies have expanded beyond national borders, leading to outline the need to regulate their activity, but also to ensure transparency and comparability to an unprecedented level (Blouin et al., 2011). Efforts were made by national and international organizations working on economic field, leading to joint projects, such as the implementation of IFRS and CCCTB, thus changing accounting and taxation (in a lesser extent) in revolutionary processes characterized by flexibility. Although no doubt, both projects are under unprecedented range of needs, many of the items attached, leading to discussion and challenge, as the scope of these approaches. Although IFRS outlined the path of the comparability and transparency of financial statements, these not yet arrived to answer to needs of the unlisted companies, in this case, maintaining the need for national accounting standards. On the other side, international expansion of these accounting standards has led to new challenges for fiscal regulators, given that historically, accounting represents the genesis for the computation of the tax base in many jurisdictions. Moreover, changes in accounting rules have led inevitably, to changes or debates to the level of tax authorities, in order to establish the taxable items accurately.