General Issues Concerning the Reconciliation of the Accounting Earnings with the Taxable Earnings

Deferred taxes came from the need to reflect the deferred debts or claims in the financial statements, in an entity's relationship with the state budget. [4] Given the complexity of the operations leading to temporary differences, in this article we will address general issues concerning the reconciliation of the accounting earnings with the taxable earnings in terms of accounting models. In order to develop accounting models, we will first clarify the tax matters that affect the entry in the accounts of deferred taxes, after which we intend to briefly present the entry in the accounts of two types of deferred taxes. Thus we can identify both the deductible temporary differences, which are indirectly involved in future net flows, by the fact that they reduce the tax due, as well as those directly involved in the net flows increase if the laws allow the recovery of tax losses from past profits.