The Relationship Between Financial Accounting And Tax Accounting: Theoretical And Practical Analysis Of Choice

In the planned economy times, accounting information users were unitary and financial accounting and tax accounting was highly superpose which was fit for that period. But under the market economy condition, accounting information users are multiplex. Investor, creditor and government have different requirements. How can we handle these differences? Should financial accounting and tax accounting be separated? How are they separated? Many researchers on tax and accounting from different countries have discussed these problems quite a lot. In recent years, our government has carried out a series of reforms on financial accounting and tax system, and has authorized the separation principle. The author holds the opinion that we should research suitability of the present policies. We should study and compare with the relationship between financial accounting and tax accounting in other countries. We must establish a model of our own which is suitable for our country. After this paper, the author hopes it promote the relationship between financial accounting and tax accounting for enterprise.The paper is divided into four parts.The first part: introduction. It briefly introduces researching background, researching motivation, present research situation, principal framework and characteristic views on the paper.The second part: basic description of financial accounting and tax accounting. It begins with the definition of financial accounting and tax accounting. Then the author introduces the relationship between them. After that, the author elaborates their differences in the primary purpose, basic premise, principle and calculation.The third part: theoretical analysis of financial accounting and tax accounting. It focuses on cost-effectiveness analysis. First the author describes the model in other countries. Second she uses cost-effectiveness analysis to analyze the relationship between financial accounting and tax accounting. Finally she utilizes it to explain the different model in different country.The fourth part: the reality choice in our country. It describes the historical evolution and present situation of accounting and tax accounting in our country. The author chooses a model from the angle of social environment and cost-effectiveness analysis that is suitable for our country.Many people have researched the relationship between financial accounting and tax accounting deeply. Following predecessor's achievements, the author uses cost-effectiveness analysis. It is a characteristic view on the paper. It not only explains the relationship between financial accounting and tax accounting among other countries, but also be applied by the author to the model choice of our country. The author proposes different enterprise has different model.