Abstract
The orientation of Danish taxation has always been towards measurement of revenue and expenses rather than changes in balance sheet value. While early tax rules allowed in principle for a separation of fiscal and financial accounting, companies generally aligned their policies on tax rules until a revision of company law in 1973. Thereafter there was some discussion of separation which became more concrete with the implementation of the Fourth Directive in 1981. This was accompanied by loose rules on deferred taxation which were firmed in the direction of full provision in a 1996 law. The article examines data from various empirical studies to show that corporate practice has been divided between full and partial provision. It considers the effect of the accounting policy choice on ratios and compares Danish companies with a European sample.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: 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.