Trends in Book-Tax Income and Balance Sheet Differences

Posted: 16 Aug 2002

See all articles by Lillian F. Mills

Lillian F. Mills

University of Texas at Austin - McCombs School of Business

Kaye J. Newberry

University of Arizona - Department of Accounting

William B. Trautman

Internal Revenue Service - LMSB Research East

Multiple version iconThere are 2 versions of this paper

Abstract

The authors use Compustat and tax return data to describe trends from 1991-1998 in differences between book and tax measures of income and balance sheet amounts. Their primary findings confirm that book-tax income differences grew throughout the 1990s. Extending prior work, they partition the sample to describe the differences by industry, global character, and profitability. Secondly, they compare Compustat financial statement assets and liabilities to the book balance sheet reported on the tax return and find that the tax return amounts exceed the financial statement amounts in the aggregate. They plan to investigate suggested explanations for this excess, including differences in book versus tax consolidation reporting and off-balance sheet activity.

Keywords: Book-tax differences, consolidation, off-balance sheet

JEL Classification: H25, H26, M41, M43

Suggested Citation

Mills, Lillian F. and Newberry, Kaye J. and Trautman, William B., Trends in Book-Tax Income and Balance Sheet Differences. Available at SSRN: https://ssrn.com/abstract=324268

Lillian F. Mills (Contact Author)

University of Texas at Austin - McCombs School of Business ( email )

Austin, TX 78712
United States

Kaye J. Newberry

University of Arizona - Department of Accounting ( email )

Tucson, AZ 85721
United States
520-621-1252 (Phone)
520-621-3742 (Fax)

William B. Trautman

Internal Revenue Service - LMSB Research East ( email )

One Montvale Avenue
Stoneham, MA 02180
781-835-4096 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
1,726
PlumX Metrics