Generally speaking, the disclosure of an enterprise's annual report is often before the final settlement of enterprise income tax, and many enterprises are busy with the audit of the annual report before making the final settlement and payment of enterprise income tax.
It should be clear to everyone that the annual financial report of the enterprise follows the "importance principle" of accounting, and the accounting of the "income tax payable" in the annual financial report of the enterprise is relatively brief, while the final settlement of the enterprise income tax pays attention to compliance, and the accounting of "income tax payable" is relatively accurate.
When the final settlement of enterprise income tax is settled, it may be found that the amount of "income tax payable" determined by the audit of the financial report of the annual report is inaccurate and the error is large.
During the audit period of the annual financial report of the enterprise, some enterprises calculate the amount of income tax payable by an enterprise according to the total pre-tax accounting profit of the whole year, and deduct the amount of prepayment
Borrow: Income tax expense
Credit: Tax Payable - Income Tax Payable.
Then check the temporary differences:
Borrowing or Crediting: Income Tax Expense.
Borrowed or Credited: Deferred tax assets (liabilities).
Question:
What should I do if there is an error in the tax payable and income tax payable obtained from the audit of the annual financial report of the enterprise, and when the enterprise income tax is finally settled?
When this error is found in the final settlement of enterprise income tax, the annual financial report has generally been disclosed.
In this case, according to the principle of importance of accounting, if the difference is not large, the income tax expense and tax payable in the current period will be directly adjusted according to the future applicable method.
If the discrepancy is significant, it is often an accounting error and needs to be restated retrospectively.
In order to consolidate the quality of the annual review data, the enterprise can arrange the financial personnel responsible for the final settlement of the enterprise income tax to solve the preliminary final settlement of the enterprise income tax before the final draft of the financial report of the annual report audit, and use the annual report of the enterprise income tax as the audit working paper.
At this time, auditors also need to pay attention to the final settlement of enterprise income tax in order to improve the quality of auditing.
This practice can lay the foundation for the formal enterprise income tax final settlement, or by the way, the enterprise income tax final settlement work is completed, so as not to do the relevant work again later.
Even if it is not possible to take into account the final settlement of enterprise income tax, in order to improve the quality of the audit annual report and avoid excessive differences, it is also necessary to pay attention to the final settlement, pay special attention to the comparison of differences in accounting and tax treatment and the impact of tax adjustment on tax declaration, be familiar with relevant tax policies such as value-added tax and enterprise income tax, reduce the accounting risk and tax-related risk of the enterprise, and improve the quality of accounting information and the quality of the final settlement of enterprise income tax.
I hope it will be helpful to everyone.