From Disconnected to Integrated Tax and Financial Systems: A Post-IFRS Evaluation of Evolution of Tax and Financial Reporting Relationships Based on the French Case

49 Pages Posted: 17 Jun 2012

See all articles by Odile Barbe

Odile Barbe

Burgundy School of Business/ESC DIJON

Laurent Didelot

Burgundy School of Business (Groupe ESC Dijon-Bourgogne)

Arvind Ashta

CEREN EA 7477 Burgundy School of Business - Université Bourgogne Franche-Comté

Date Written: July 1, 2011

Abstract

The globalization of financial markets has required the use of common reporting standards, notably the IFRSs. These are impacting the accounting systems of many countries. However, accounting systems are also often used for national tax reporting. This creates a divergence in the reporting needs which existing accounting systems are unable to meet. Previous studies have talked about linkages between accounting and taxation and find aspects of their systems identical, disconnected, accounting dominated or tax dominated, and that this mix changes over time, with a definite evolutionary model. This conceptual paper, grounded in French empirics, examines whether since the new IFRSs, the existing theoretical evolutionary model is adequate, and finds that it is not. It then proposes an alternative integrated accounting system to satisfy simultaneously the financial and tax reporting requirements.

Keywords: Accounting, IFRS, Tax, Taxation, Financial reporting, France

JEL Classification: M4, E62, H25, H32, K34

Suggested Citation

Barbe, Odile and Didelot, Laurent and Ashta, Arvind, From Disconnected to Integrated Tax and Financial Systems: A Post-IFRS Evaluation of Evolution of Tax and Financial Reporting Relationships Based on the French Case (July 1, 2011). Available at SSRN: https://ssrn.com/abstract=2085305 or http://dx.doi.org/10.2139/ssrn.2085305

Odile Barbe

Burgundy School of Business/ESC DIJON ( email )

France
0380725971 (Phone)

Laurent Didelot

Burgundy School of Business (Groupe ESC Dijon-Bourgogne) ( email )

France

Arvind Ashta (Contact Author)

CEREN EA 7477 Burgundy School of Business - Université Bourgogne Franche-Comté ( email )

29 rue Sambin
21000 Dijon
France

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