The Impact of Adopting International Accounting Standards on Taxation – A Theoretical Preview

International Accounting Standards has become an important requirement for accounting system, as a result of the increasing trend towards standardization of accounting practices at the global level, which requires the preparation of financial statements characterized by reliability, appropriateness, free from significant errors and bias. The relationship between IFRS and the tax system is not always straightforward. In some countries, the accounting standards used for tax purposes may differ from those used for financial reporting, this can lead to differences in the way income, expenses, and other financial data are reported for accounting and tax purposes. In some cases, countries may allow or require adjustments to be made to financial statements
prepared using IFRS to calculate taxable income under the tax system. These adjustments are made to account for differences in the way certain items are treated for accounting and tax
purposes. International Standards (IAS/IFRS) paid great attention to disclosure considerations in order to increase the quality of accounting information, as there is more than one standard dealing with accounting disclosure and how to present the financial statements in terms of form, content, structure and accounting policies. Financial analysts and investors need comparable and comprehensible financial information of foreign companies to be better help in their decision whether to buy a particular share or invest in other ventures. The key issues that investors and financial analyst look for are reliability and comparability of the financial information. This study aims to examine the impact of the determinants of improvements of international
accounting standards on the tax status of enterprises? The use of international accounting standards in global arena was patiently waited in order to actively use in business, financial
aspects, private sector etc. Currently the new innovations in International Accounting Standards and Taxation System resulted into rapid growth of using the International Accounting Standards and Taxation System. During this paper I highlighted advantages of using the International Accounting Standards, its future challenges. The study, by knowledge the most important reasons for their emergence, the most important improvements made to them, and identify the determinants of improvements to international accounting standards on the tax status of corporations. It reached the following results: them or work to reduce or at least avoid them.
(2) It is possible to achieve many goals if there is agreement between international accounting standards and the tax system, so it is necessary to work to bring about compatibility to be able
to achieve these goals and in order to also be able to achieve tax governance and reduce the process of tax evasion.
(3) improvements in international accounting standards have a positive impact on the tax position of companies The transformation of these standards contributes to improving the
financial performance of the company. The study recommended the need to adopt international accounting standards as certified accounting rules to determine the net results in the tax system
in order to increase the tax burden and thus increase the effectiveness of the tax system.