The Impact of Applying Ifrs on the Accounting-Taxation Rapport, at European Union Level

• Author: Maria Virginia Stancu (Catana)
• Position: PhD in progress, Valahia University Târgoviste, Romania
• Pages: 368-371

European Integration - Realities and Perspectives. Proceedings 2019

368

The Impact of Applying IFRS on the

Accounting-Taxation Rapport, At European Union Level

Maria Virginia Stancu (Catana)1

Abstract: The taxation gets attention of entities regardless the applicable accounting system. It has been

developed and is still widely developed by legislative provisions, rules, regulations and guidelines often

difficult applicable i n practice, through countless changes, new releases of taxes, new bases of calculation

whose foundation must meet financial and budgetary policy of the executive. The tax system in Romania, in

recent years, has undergone many unpredictable and often controversial changes, which influenced both

accounting and business.

Keywords: IFRS; accounting result; fiscal result; the CCCTB; accounting treatment; compared Accounting –

Taxation

JEL Classification: E62; G32

1. Proposals from the European Union

The financial reports of general interest are part of the financial reporting process and are regulated at

European level by the directives on individual and consolidated annual accounts, but also by the

directive on the conditions of authorization of persons performing financial statement audit.

International Financial Reporting Standards, Conceptual framework and international provisions just

aim to establish concepts that underlie the preparation and presentation of financial statements for users.

If the value added tax and excise tax base are determined in detail by the European Directives which

have been transposed into Romanian tax law, there is not a common basis for entity tax on direct taxes.

However, during the closing of EU accession negotiations, all states have committed that they will not

introduce national legislation on direct taxes only those tax provisions that are in accordance with the

Code of Conduct for Business Taxation.2

Due to the fact that the principles of determining the profit are not clearly defined at the international

level, there was approved at the level of the member of the States a Plan of activity of a group of experts

appointed as the Working Group for the creation of a common consolidated tax base of companies.

The Common Consolidated Corporate Tax Base-CCCTB is a system according to which multinational

entities would lead to a consolidated basis of the amount of taxable income. The concrete actions for the

construction of this system began at the ECOFIN Council in 2004, when most of the Member States

1 PhD in progress, Valahia University Târgovişte, Romania, Address: Bulevardul Regele Carol I 2, Târgoviște 130024,

Romania, Tel.: 0245 206 101, Corresponding author: virginia.catana@yahoo.com.

2 It was adopted on 1 December 1997, the EU Council and a set of fiscal rules to combat unfair tax competition, is not a legally

binding instrument.