Some Controversy Concerning 'Controversial Accounting Changes'.
In its recent "Opinion No. 11" the Accounting Principles Board of the American Institute of Certified Public Accountants recommended comprehensive income tax allocation procedures whenever material, non-permanent differences exist between pretax accounting income and taxable income. In its "Opinion" the Board did not attempt to dispel the controversy surrounding the nature of the deferred credit. The Board's reluctance to buttress its "Opinion" with theoretical justification is unfortunate for two reasons. First, it gives rise to otherwise avoidable speculation, such as Professor David F. Hawkins', concerning the nature of the absent theory underlying the "Opinion." Second, it prolongs the relegation of accounting practice to the status of an "art" at a time when most business disciplines are moving towards the "positive science" approach. The purpose of this article is to critically examine Professor Hawkins' attempt to explain the nature of the deferred tax credit which arises as a consequence of the ruling in "Opinion No. 11."
- DOI
- 10.2308/tar-4486685
- Volume
- 44 (2)
- Pages
- 354-358
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref