The Alignment of Tax Accounting with Financial Accounting: An Analytical Study of the Impact of Tax Policies on Financial Reporting

Authors

  • Hussein Hatem Abd Ali Alkinani Al-Furat Al-Awsat Technical University, Kufa Administrative Technical College, Department of Accounting Technique, Najaf, Iraq.
  • Ali Nadhim Mahdi ALjanaby Al-Furat Al-Awsat Technical University, Kufa Administrative Technical College, Department of Accounting Technique, Najaf, Iraq.
  • Arshed Makki Rashed Al-Qadisiyah University / College of Administration and Economics, Accounting Department, Qadisiyyah Province, Iraq.

DOI:

https://doi.org/10.48165/sajssh.2024.6308

Keywords:

Tax accounting, financial accounting, tax policies, financial reporting

Abstract

This study examines the relation between tax accounting and financial accounting and analyzes  the effect of tax policies and financial reports prepared by companies. The study aims to  understand the extent of overlap or discrepancy between the two accounting systems, and the  impact of tax and financial accounting on the financial reports adopted in the preparation of  financial statements. This paper utilised a sample of 116 companies listed on the stock market  and used the Stata program to analyze secondary data. This study found a important and  positive association among tax accounting and financial accounting, with tax policies and  financial reporting. Tax policies directly impact on the content and credibility of financial  reports, as some companies tend to manipulate estimates to reduce their tax burden. The  existence of significant variation among the results of tax accounting and financial accounting  leads to a decrease in transparency for investors. 

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Published

2025-06-06

Issue

Vol. 6 No. 3 (2025): South Asian Journal of Social Sciences and Humanities (Jun) 2025

Section

Articles

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Copyright (c) 2025 South Asian Journal of Social Sciences and Humanities

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