The convergence of preparation the financial statements according to IAS and tax accounting in Kosovo

Abstract

Purpose: This research aims to present the essential differences during preparation of financial statements according to commercial accounting rules and tax accounting rules; the ability of authorized people to differentiate two categories of reporting, and other findings regarding their orientation of preparation FS under IAS and then use them for the preparation FS under tax rules or inversely.

Design/methodology/approach: we have realized questionnaire research which was addressed to certified accountants and others under this qualification to gather the information that will serve our research questions. This paper applied descriptive statistics and analytical-inferential statistics in terms of the application research method.

Findings: The findings of this research show that there is a satisfactory level of accountant’s knowledge about the differences between commercial accounting and tax accounting rules. According to the obtained empirical results, we concluded that more than 50% of the respondents prefer to prepare the FS initially according to KCFR requirements followed by adjustments under tax requirements.

Originality/value: Few known studies of this type, increase the contribution of this research in terms of drafting regulations related to the preparation of FS according to IAS and preparation of FS according to TAK rules to create a more approximate system of both forms of reporting.