УДК 631.336

Штанько Є.О., к.е.н. доц. Лєгостаєва О.О.

Харківський інститут банківської справи УБС НБУ

Temporary differences in income and expenses as part of accounting unification

Profit belongs to the category of performance determining indicators of enterprises. In Ukraine this figure calculated in accordance with accounting standards and with tax legislation. The question of harmonization of these calculations leads to the development of economics of Ukraine for a long time. Newly adopted Tax Code of Ukraine aims to eliminate numerous contradictions between the bookkeeping and tax methods of determining and taxation of business profits. However, the difference between the evaluation and recognition criteria for income and expenses according to National Accounting Standards and income and expenses defined in tax legislation in the form of temporary and permanent tax differences still exists. This underlines the relevance of the research theme.

The aim of this work is to study the statements of the Tax Code in terms of tax on the profit, analyze the procedure of income and expenses determining in order to fill the statement for tax on the profit on the basis of bookkeeping and financial reporting; determine the temporary differences between tax and financial reporting data in terms of income and expenses, which is the basis in forming the tax on the profit declaration.

The Tax Code determines a procedure for calculating the object of tax on the profit taxation, the composition of income and expenses. Income and expenses,which is taken into account in determining tax profit, is calculated according to bookkeeping by adjusting income and expenses on tax permanent and temporary differences. The company must keep records of temporary and permanent tax differences, defined according to the Tax Code, and provide for the accumulation of information about them in accounting registers in order to form the calculating the object of taxation.

The tax differences are the differences that arise between the evaluation and recognition criteria for income, expenses, assets, liabilities according to National Accounting Standards and income and expenses defined in tax legislation. The permanent tax difference is the difference, which occurs during the reporting period and not reversed in the next reporting periods. The temporary tax difference arises in the reporting period and is canceled in the next reporting periods [1].

The list of temporary tax differences in income (appearance background, recommended accounting registers) was formed on the basis of the Tax Code research and analysis. Generalizations are presented in Table 1.

Table 1

Temporary tax differences that arise according to enterprise income

№	Index	Article of TC	Source
1	Amounts repayable financial assistance received by a taxpayer within a fiscal period that remain unreturned at the end of this fiscal period from the persons who are not payers of this tax (including non-residents), or persons who receive benefits under the legislation for this tax, including the right to apply the tax rate lower than the established	135.5.5	Data for subaccount 682 «Internal calculations» and 685 «Payments to other creditors»
2	Income not included in calculation of income in the previous periods and identified in the reporting period	135.5.12	Calculation of accounting
3	The amount of fines and penalties or fines, actually received upon decisions of the contract parties or relevant government agencies or court	135.5.3 137.13	Data for account 36 «Payments from buyers and customers» and 37 «Payments from various debtors»
4	Loss from sale of securities and derivatives received in previous tax periods	153.8	Calculation of accounting

Index «Amounts repayable financial assistance received by a taxpayer within a fiscal period that remain unreturned at the end of this fiscal period from the persons who are not payers of this tax, or persons who receive benefits under the legislation for this tax, including the right to apply the tax rate lower than the established» indicates temporary difference in accordance with subparagraph 135.5.5 of article 135 of the Code [1]. Enterprise increases the amount payable according to subaccount 685 «Payments to other creditors» in bookkeeping, but refers to the income of the reporting period according to the Code.

Another index «Loss from sale of securities and derivatives received in previous tax periods» indicates temporary difference, which reduces the income of tax reporting period from the sale of securities and derivatives in the amount of losses from the sale of the same kind of securities and derivatives received in previous tax periods within the profits (paragraph 153.8 of article 153 TC of Ukraine)

The list of temporary tax differences in expenses (appearance background, recommended accounting registers) was formed on the basis of the Tax Code research and analysis. Generalizations are presented in Table 2.

Table 2

Temporary tax differences arising on enterprise expenses

№	Index	Article of TC	Source
1	Repayment of financial assistance (part of it) which was included at the beginning of the reporting period to the person who gave it	135.5.5	Data for subaccount 682 «Internal calculations» and 685 «Payments to other creditors»
2	Differences in depreciation arising from the using of different useful life for fixed assets	145.1 145.1.1 146.11	Calculation of accounting
3	The cost of improvements (modernization, modification, completion, equipping, reconstruction, etc.) the main production facilities in an amount not to exceed 10% of their value	146.14	Data for account 15, "Capital investments"
4	Expenses of establishment of a bad debt reserve are expensed for taxation purposes in the amount of a bad debt receivable accordance with subparagraph 14.1.11 art. 14 Section I	138.10.6 (item «г»)	Data for account 36 «Payments from buyers and customers», 38 «Provision for doubtful debts»

Index «Repayment of financial assistance (part of it) which was included at the beginning of the reporting period to the person who gave it» indicates temporary tax difference that increases expenses, in accordance with subparagraph 135.5.6 of article 135 of the Code in the amount repayable financial assistance (part of it) for the consequences of the reporting tax period that has had such a return. Enterprise increases the expenses on repayment assistance amounts which reflected in the bookkeeping for debit subaccount 685 «Payments to other creditors» in correspondence with the credit subaccount 311 «Accounts are in banks»

Index «Differences in depreciation» indicates on differences due to:

- Using of different useful life - positive or negative temporary difference between the amounts of depreciation calculated according to National Accounting Standard № 7[3] and to the Tax Code (article 145 subparagraph 145.1) based on analytical calculation of temporary differences in depreciation of fixed assets taking into account restrictions on the minimum acceptable useful life in the cut of classification groups;

- different initial value of fixed assets for tax purposes and accounting data - temporary positive difference, which is formed due to the repair costs (over 10% of book value) according to the Code (paragraph 146.11 of Article 146) by means of analytical calculation of differences in depreciation of fixed assets Differences are determined on the basis of inventory accounting cards, namely the cost that is amortized according to the Tax Code and the rules of accounting.

In our opinion, the list of tax differences is not exhaustive and can be supplemented (changed) by enterprise in accordance with its features in order to comply with all accounting standards and tax legislation.

Thus, in this work the statements of the Tax Code in terms of tax on the profit have been studied, on this basis the procedure of income and expenses determining in order to fill the statement for tax on the profit on the basis of bookkeeping and financial reporting have been analyzed. As a result, the temporary differences between tax and financial reporting data in terms of income and expenses which are basic in forming tax on the profit declaration have been determined. The perspectives of this study are the following: development of guidelines for practicing bookkeepers concerning accounting temporary differences in determining tax on the profit.

List of sources used:

1. Податковий кодекс України № 2755-VI від 02.12.2010 р. зі змінами і доповненнями – режим доступу : http://zakon2.rada.gov.ua/laws/show/2755-17

2. Положення (стандарт) бухгалтерського обліку 17 «Податок на прибуток», затверджений наказом Міністерства фінансів України від 28.12.2000р. № 353 – режим доступу : http://zakon.rada.gov.ua/cgi-bin/laws/main.cgi?nreg=z0047-01

3. Положення (стандарт) бухгалтерського обліку 7 «Основні засоби», затверджений наказом Міністерства фінансів України від 27.04.2000р. № 92 – режим доступу : http://zakon.nau.ua/doc/?uid=1027.243.11&nobreak=1