Theoretical and Applied Economics
No. 7 / 2012 (572)
The amortization of fixed assets in terms of deferred taxes
“Ştefan cel Mare” University of Suceava
Abstract. The effects of amortization on the presentation of the financial statements are quite noticeable when calculating the profit before tax as well as for its recognition in the balance sheet. Accounting amortization changes the value of the fixed assets itemized in the assets column, while the related expense changes the profit and loss account. Tax amortization does not affect the performance of the enterprise, but only the taxable amounts. The differences between accounting amortization and tax amortization generate temporary differences that are either taxable or deductible, and these are matters that will be analysed under circumstances when the deferred tax method is applied. The recognition of the value of the deferred tax in the profit and loss account for each type of temporary difference would be a step towards the separation of financial accounting from taxation.
Contents
Estimating the probability of stock market crashes for Bucharest Stock Exchange using stable distributions
Analysis of the Romanian employment rate. A panel data approach
Consumer characteristics influencing milk consumption preference. The Turkey case
A regional analysis of the effects generated by the economic crisis and its impact on the outstanding loan portfolio in Romania
The amortization of fixed assets in terms of deferred taxes
Impact of the economic crisis on human resources development in Greek health system
Economics and “underground” economy theory
Entrepreneurial behaviour consequences on small and medium-sized firms’ innovation
The role of tender offer in FDI selection. Study case: Romania
Characteristics and drivers of venture capital investment activity in Romania
Globalization – tourism – communication, competitiveness triangle on the market affected by the economic crisis
New approaches to business cycle theory in current economic science