Investigation of problematic areas in application of the provisions of business accounting standards and law on corporate income tax

Presentation and coordination of financial and tax accounting information is quite complicated as in many cases these types of accounting have to comply with different requirements and purposes. Business accounting standards regulate financial accounting and the biggest part of tax accounting is regulated by Law on corporate income tax. Consequently provisions of the mentioned above legislation form their application problems. The aim of the article is to systematically analyse provisions of business accounting standards (BAS) and Law on corporate income tax (LCIT) and to indentify main problematical spheres of their application. Methods of scientific literature analysis, information systematization, comparison and summarization were applied in order to achieve the purpose of the article. Analysis of 56 corporate tax reviews were carried out for assessment of practical application of BAS and LCIT provisions. Problematical shperes of application of BAS and LCIT provisions were distinguished on the basis of logical and systematic methods. The research process consist of such stages as determination of relationship between of BAS and LCIT, analysis of application of BAS and LCIT provisions and identification of problematical spheres of application of BAS and LCIT provisions. The research identified spheres of assets’ accounting and application of corporate income tax exemptions as most problematical. Most complicated transactions in application of BAS and LCIT provisions for accounting of fixed tangible assets were related with acquisition of fixed tangible assets, assessment of revaluation results, calculation of depreciation, repair and reconstruction, and the write-off. Most complicated transactions for accounting of intangible assets were related with recognition of intangible assets, separation of development work and researches, calculation of goodwill. Subsequent assessment, revaluation, sales and the write-off transactions were found as most complicated for accounting of financial assets. Enterprises have to meet such different requirements for application of BAS and LCIT provisions for current assets accounting as transactions of assessment of inventories, accounting of results of inventory and the write-off. It may be stated, that exemptions of LCIT make impact only on results presented in corporate income tax declaration as a direct regulatory / incentive instrumentality