A Critique of the Conceptual Framework Concerning Accounting for Income Tax
Constancio Zamora Ramírez
Guillermo J. Sierra Molina
The revision of IAS-12 by the IASC has entailed a noteworthy reconciliation with the FASB'S attitudes regarding accounting for income tax. This suggests a clear international reference for the introduction of a specific accounting alternative: the liability method, comprehensive allocation, a balance-sheet focus and without the possibility of discount. However, the chosen alternative has been strongly criticised by some authors. For this reason, this paper analyses its consistency with respect to the shared characteristics of prevailing conceptual frameworks, revealing diverse problems of inconsistency, a variety of which have been corroborated by empirical literature. For this reason, we do not consider the international standard to be suitable in terms of the position adopted. Finally, a proposal for future work is put forward.
international accounting, financial accounting, income taxes, tax effect.
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