The Influence of IAS/IFRS on the CCTB, Tax Accounting, Disclosure and Corporate Law Accounting Concepts 'A Clash of Cultures'

Depending on the goals to be achieved, there are many ways to calculate a
company's profits. This is to a great extent due to the different aims of
financial and tax accounting.

Financial accounting is undergoing a growing influence of IAS/IFRS. IFRS is
also exerting a growing influence on tax accounting. This is especially
visible in the European development of a Common Consolidated Corporate Tax
Base (CCCTB) for multinational corporate entities. Although no formal link
exists between IAS/IFRS and CCCTB, IFRS will likely be a strong material
influence on various key elements of the CCCTB. Many tax professionals (and
Member States) fear the influence of IAS/IFRS on tax accounting mainly given
the divergent aims of IAS/IFRS and tax accounting.

The introduction of IAS/IFRS will have significant consequences for tax
accounting, disclosure and corporate law accounting concepts in individual
Member States. Since IAS/IFRS is strongly influenced by the Anglo-American
view on accounting, a question arises regarding its potential influence on the
various continental disclosure, tax and financial accounting systems. In other
words, one can readily envision a confrontation of systems with totally
different backgrounds. This insightful work focuses on the consequences of
this ‘clash of cultures’ for tax accounting, disclosure and corporate law
accounting concepts.