Over the past years there has been increasing interest in the informational importance of the differences between accounting or book income and taxable income. This subject, known as book-tax differences (BTDs), involves various aspects, mainly the motives for these differences, the potential...

This paper examines the effect of tax planning and earnings management on the informativeness of book income and taxable income. We conduct two sets of tests documenting (1) the incremental effect of tax planning and earnings management on the informativeness of book and taxable income and (2)...

We contend that information not yet considered by the extant research can significantly contribute to bankruptcy prediction, and investigate a possible association between abnormal changes in book-tax differences (BTDs) and bankruptcy. Using a hazard model and out of sample testing as in Shumway...

Financial accounting and tax professionals today face a bewildering maze of computational, disclosure, and reporting requirements related to income tax accrual. GAAP financial statements must comply with Accounting Standards Codification (ASC) Topic 740, Income Taxes (formerly FAS 109,...