Comparative study on accounting and fiscal amortization

Author:Mariana Gurau - Maria Zenovia Grigore
Position:Lecturer Ph.D. Candidate, Faculty of Economic Sciences, 'Nicolae Titulescu' University, , Bucharest, Romania - Associate Professor Ph.D., Faculty of Economic Sciences, 'Nicolae Titulescu' University, , Bucharest, Romania
Pages:207-215
Mariana Gur?u, Maria Zenovia Grigore
207
LESIJ NO. XIX, VOL. 2/2012
COMPARATIVE STUDY ON ACCOUNTING
AND FISCAL AMORTIZATION
Mariana GUR;U*
Maria Zenovia GRIGORE**
Abstract
Placed in the international trend, Romanian accounting had experienced various changes,
especially as regards of progress on disconnection between accounting and fiscality. In the present,
fiscal rules should not have any role in accounting decisions, because accounting rules are applied
to produce accounting information that is useful in making decisions and to provide a "true and fair
view" upon financial reality of the entity. However, the barrier in the habit of accounting to thinking
for fiscal point of view all economic transactions remains insurmountable, yet. Starting from this
perspective on disconnection between accounting and fiscality would mean that amortization
recorded in the accounting, as a result of management policy, to be different from fiscality
amortization, to calculate income tax. Although formally accepted, disconnect between accounting
and fiscality continues to meet many difficulties. In this sense, it is usual in practice to use the same
method of amortization for accounting purposes and for fiscal purposes to prevent complications of
double track amortization and prevent wandering in the rules in this field. Accounting rule is
deliberately eluded in favor of the fiscal rules. This is the reason we proposed to make in this paper a
comparative study between norms and rules on accounting and fiscal amortization, paper in which
we intend to show the benefits of applying accounting and fiscal rules separately.
Keywords: true and fair view, fiscal amortization, linear amortization, disconnect between
accounting and fiscality
Introduction
In the engaged (integrated) relationship between accounting and fiscality is integrated
recognition, measurement, amortisation, all these being subordinated to profit tax. In regard to the
acceptance by fiscality of accounting rules and treatment in regarding items listed, occur three types
of situations:
• fiscality accept tacit the accounting treatment;
• fiscality accept explicit the accounting treatment;
• fiscality defines its own behavior and its own treatment.
Situations in which fiscality defines its own behavior and its own treatment refer to taxation
of profit, but also to those elements that converge to the taxation of profits.
One of the problems that develop asymmetries between accounting and fiscality,
amortization, as a resource to rebuild equity, urges businesses to reflections in order to choose the
best methods in accordance with the economic context in which they operate, but also with the
strategy of the entity.
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* Lecturer Ph.D. Candidate, Faculty of Economic Sciences, ”Nicolae Titulescu” University, , Bucharest,
Romania, (e-mail: marianagurau@univnt.ro).
** Associate Professor Ph.D., Faculty of Economic Sciences, “Nicolae Titulescu” University, , Bucharest,
Romania, (e-mail: mgrigore@univnt.ro).

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