IFA: The Influence of Corporate Law and Accounting Principles in Determining Taxable Income

This text look at the interaction between accounting, company law and taxation as one of the key issues in corporate regulation. In most legal systems there seem to be, from a more theoretical perspective, rather undeveloped "principles" in this area. This is the case both for statutory provisions and case law. Though the questions are of fundamental importance for the different regulations involved, and are highly complicated, the legal reasoning and debate are very much focused on whether a system is of one kind or another. Either the system has a strong link between accounting and taxation/company law (conformity principle) or it has not.