13 January 2011
What is or is there any difference between accounting profit, book profit, taxable profit, cash profit? Is the cash profit same as book profit excluding non-cash items? Why does the government require the companies to calculate the accounting profit and taxable profit separately (This question may belong to economics)? It would have achieved the objective of tax collection with single calculation.
What financial impact would have been there if the accounting profit and taxable profit were same? Are they so in any country?
13 January 2011
too long question... cannot be answered but cash profit is arrived after adjustments for non cash charges like depreciation, amortisation etc.
Tax has its own methods of calculation of profit due as the objective of the government is to avoid loss to the exchequer.
CAclubindia
