Book chapter
6. Financial reporting effects of tax planning and execution
Handbook on the Financial Reporting Environment, pp.85-115
Research handbooks in accounting, Edward Elgar Publishing
2025
DOI: 10.4337/9781800888685.00016
Abstract
Corporations face a variety of taxes in virtually every jurisdiction of operations. Corporate tax planning strives to maximize a firm's after-tax income by incorporating an understanding of how all types of taxes impact a firm's operating, investing, and financing considerations. The most salient of these taxes for financial reporting purposes is income taxes. This chapter provides a primer on accounting for income taxes to familiarize readers with the important, and at times complex, elements of the tax accounts. The primer provides income tax disclosures included in the financial statements of two global firms – Amazon and BP – to illustrate how firms present their income tax information to external stakeholders. The chapter then discusses the largest areas of tax accounting research examining both the determinants and implications of corporate tax planning. The chapter concludes by discussing cross-border profit shifting and recent global policies aimed at reducing firms’ tax-motivated profit shifting practices.
Details
- Title: Subtitle
- 6. Financial reporting effects of tax planning and execution
- Creators
- Allison KoesterTerry ShevlinRyan J Wilson
- Resource Type
- Book chapter
- Publication Details
- Handbook on the Financial Reporting Environment, pp.85-115
- Series
- Research handbooks in accounting
- DOI
- 10.4337/9781800888685.00016
- Publisher
- Edward Elgar Publishing; Cheltenham, UK
- Language
- English
- Date published
- 2025
- Academic Unit
- Accounting
- Record Identifier
- 9985164722902771
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