According to gaap and income tax reporting

Assignment Help Financial Accounting

Reference no: EM131202347

Financial statement reporting according to GAAP and Income Tax reporting according to IRS regulations can best be described as follows:

a) Financial reporting according to GAAP is accrual based reporting with the goal of matching current period revenues with current period expenses. Whereas Tax reporting is done according to the IRS code and regulations and is primarily cash basis reporting.

b) Financial reporting is based on SEC regulations. Tax reporting is based on IRS regulations.

c) Tax reporting is accrual based reporting. Financial reporting is done according to GAAP.

d) Both financial reporting and tax reporting are cash based reporting processes.

Reference no: EM131202347

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