Abstract
ABSTRACT In this study, we examine two questions: (1) whether financial statement aggressiveness related to tax accounts is associated with the likelihood of having tax-related misstatements in the financial statements, and (2) whether the disclosure of the need to restate prior years' financial statements for a tax-related reason influences tax-related financial statement aggressiveness related to tax accounts in the fiscal year of announcement. Recent evidence of an increase in the rate of tax-related accounting restatements motivates these questions. In this study, we find empirical evidence suggesting that tax-related financial statement aggressiveness is positively associated with the likelihood of having tax-related misstatements in the financial statements. We also find that in the year in which the need to restate prior years' financial statements is announced, companies with tax-related misstatements in their financial statements appear to be less tax-related financial statement aggressive compared to the control group.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
