The Study On Coordination Of Extraordinary Items' Accounting Standard And Enterprise Income Tax Law

As the reformation of economic system and state-owned enterprise, as well as the growth of international competition, there are more special business arose, such as corporate restructuring and combination, finance leasing, and exchange of non-monetary assets. In Feb 15,2006, the Ministry of Finance issued "Accounting Standards for Business Enterprises—Basic Standard" and 38 another accounting principles about corporate accounting standards system. In October 30,2006, "Application Guide for Accounting Standards for Business Enterprises" was published. This reformation was suitable to China and convergent with international financial report criterion. From the January 1,2008, the "PRC Enterprise Income Tax Law (EITL)" came into effect and the "Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises" and the "Provisional Regulations of the People's Republic of China on Enterprise Income Law" which published respectively on 1991 and December 1993 were abolished.The new EITL made uniform definition of taxpayer, unified moderate tax rate, pre-tax corporate income tax deduction method and criterion, and tax preferential policy, established a new tax preferential policy system about "mainly with industrial preferential policies while making regional preferential policies subsidiary". These new reformation could make great contribution to nation economy and society development. During the self-improvement of accounting standard and income tax law, the difference between them is changing, it also arouse concern in academic and practical field. However, the studies especially the depth study on the difference about extraordinary items are very little.In this thesis, based on the previous studies in China and Unite States, we illustrate briefly that the difference between accounting standard and income tax law is due to the behavior contrast between government and taxpayer, and due to the difference of objective and principle when accounting standard and income tax law were established. Drawing on past studies, we classified the difference as mechanical difference and motivational difference.We mainly using contrast and induction method, we studied the difference between the extraordinary items' accounting principle and new tax law, as well as how coordinate them. When coordinate income tax law and accounting principle, great attention must be paid to the announcement of relevant supporting policies. We also give some assuring suggestion, such as intensify taxpayers' awareness to pay tax and improve enterprise internal control system.