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http://dx.doi.org/10.5762/KAIS.2012.13.1.164

A Study on the Harmonization between Financial and Tax Accounting in relation to Borrowing Costs  

Yoo, Jae-Kwon (College of Business Administration, Sangmyung university)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.13, no.1, 2012 , pp. 164-168 More about this Journal
Abstract
This study suggests the direction to narrow down the difference between financial and tax accounting in relation to borrowing costs. Accounting for capitalization of borrowing costs under accounting standards for non-public entities should be revised to converge into KIFRS. The provision of corporate income tax law relating to capitalization of borrowing costs should be applied on the optional basis rather than compulsory application especially for non-public entities. The range of qualifying assets for capitalization under the tax law should be reviewed to comply with KIFRS.
Keywords
Borrowing Costs; the Difference between Financial and Tax Accounting; Capitalization of Borrowing Costs; KIFRS;
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  • Reference
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