An Analytical Study of the Problems Related to Fixed Assets and their Depreciation Between Tax Legislation and Egyptian Accounting Standards

Abstract

The study aims to achieve a kind of consistency between the Egyptian accounting standards and the provisions of the income tax law by studying the most important accounting and tax problems related to fixed assets resulting from the inconsistency between the Egyptian accounting standards and the provisions of tax legislation with the development of proposals to treat them, and the study reached a set of results The most important of them is that the tax legislator has created a kind of inconsistency between the provisions of tax legislation and Egyptian accounting standards, and this was evident through the provisions of tax legislation that conflict in the application of its provisions regarding depreciation with what was stipulated in the Egyptian accounting standards, although the tax legislator in accordance with the provision of Article ( 17) of the law has referred to determining the net profit through the income statement prepared in accordance with Egyptian accounting standards. The provisions of the tax legislation did not address the tax treatment of impairment in the value of long-term assets and the resulting impairment losses, while impairment losses are recognized in the value of assets in accordance with Egyptian accounting standards