The Possible Weakening of Financial Accounting from Tax Reforms

• 成果类型: Article
• 署名作者: Hanlon, Michelle
• 署名单位: Massachusetts Institute of Technology (MIT)
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2021-0198
• 发表日期: 2021
• 页码: 389-401
• 关键词: earnings management; VALUE RELEVANCE; book income; conformity; incentives; education; WILL

摘要

There are past and proposed tax law changes that contain provisions that affect financial reporting. These include calls for book-tax conformity, proposals to increase the links between financial accounting and taxable incomes, and actions by Congress that make direct alterations to U.S. GAAP. I submit that these tax law changes potentially threaten financial reporting quality. I discuss my concerns about why such provisions have not attracted attention from accountants to the extent they should and make a case for more awareness and more research going forward.