Abstract
The Conformity Level of Income Tax Accounting in Jordan with the Requirements of the International Accounting Standard IAS (12) in Terms of Taxable Temporary Differences’ Recognition
Highlights
The concept of tax has been developed as a result of the political, social and economic developments and it is no longer limited to the process of providing the treasury with money that was spent on the country’s needs and requirements but it aimed to achieve justice among the people
As a result of the increase in the companies that followed the international accounting standards in Jordan, and more foreign companies applied these standards in addition to calculation of the tax profit according to the Jordanian tax legislations, there was a great gap between the accounting profit and the tax profit caused Taxable temporary and permanent differences which were treated according to the international accounting standard (12) requirements
This study aims to identify if income tax accounting in Jordan allows reduction of the retirement expenses according to a specified benefits plan or if it requires payment of these expenses before being approved (IFRS/red book, 2017, p. 912)
Summary
The concept of tax has been developed as a result of the political, social and economic developments and it is no longer limited to the process of providing the treasury with money that was spent on the country’s needs and requirements but it aimed to achieve justice among the people. Significance of the study that there is a need to set specific procedures to treat the mechanism of the tax accounting on income in Jordan through developing the tax accounting on income in Jordan according to the international accounting standards requirements so as to reduce the gap between the accounting profit and taxable profit and to enhance trust between taxable management and taxpayers. As a result of the increase in the companies that followed the international accounting standards in Jordan, and more foreign companies applied these standards in addition to calculation of the tax profit according to the Jordanian tax legislations, there was a great gap between the accounting profit and the tax profit caused Taxable temporary and permanent differences which were treated according to the international accounting standard (12) requirements. What is the conformity level of income tax accounting in Jordan with the requirements of the international accounting standards?
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