Income Tax Accounting
/ˈɪnkʌm tæks əˈkaʊntɪŋ/
Definitions
- (n.) The branch of accounting that deals with the methods and principles of recognizing, measuring, and reporting income taxes in financial statements according to legal and regulatory frameworks.
Companies must apply income tax accounting to accurately reflect their tax liabilities in financial reports.
Forms
- income tax accounting
Related terms
See also
Commentary
Income tax accounting specifically addresses the timing and recognition differences between accounting income and taxable income, which is critical for compliance with tax regulations and accurate financial disclosure.
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