Journal of Accounting Research Vol. 6 No. 2 1968
Accelerated Depreciation and Deferred Tax Allocation
Abstract
Firms which elect to use accelerated depreciation for tax purposes while using straight-line for reporting purposes have only one approved method for recording the difference between book tax expense and the tax liability.' This method relies on a deferred credit account in which the difference between the tax expense (calculated using straight-line depreciation) and the actual tax paid is recorded. The reported net income resulting from this procedure is the same as it would have been if straight-line depreciation were taken for tax purposes. Tax allocation is considered an extension of accrual accounting to include` taxes. The logical grounds for such inclusion are laid in the classification of taxes as expense items.
- DOI
- 10.2307/2490240
- Volume
- 6
- Issue
- 2
- Pages
- 262
- Sources
- bibtex:phds-export.bib openalex crossref