I find that the income tax and computation is quite similar to the profit and loss account in financial accounting, this is a major surprise for me. Instead of creating two different accounts, why cant they merge into one big account? (just a curious inquiry)
CPA PEP Prep Q&A
Taxation and Financial Accounting
Re: Taxation and Financial Accounting
by Joy Mulii 
- 19 Jan 2016, 8:04 AM
they are somehow familiar come to think of it, its just like the marginal accounts in auditing.
Re: Taxation and Financial Accounting
by Angela Hernandez - 24 Jan 2016, 7:49 AM
I read about how the two share similarities, they are almost the same, for example taxation is applied to the final trading and profit loss account of the firm after which net profit or loss is calculated, thanks Joy!
Re: Taxation and Financial Accounting
by Douglas Justo - 25 Jan 2016, 3:17 AM
they do share some similarities but lets keep in mind that financial accounting involves preparation of the financial statements that can be interpreted into the current financial position the organisation is facing while taxation, deals most with appropriations and state regulations.
Re: Taxation and Financial Accounting
by Benjamin Osean - 26 Jan 2016, 5:05 AM
There are lots of similarities, they are similar in terms of calculations and financial statement layouts, apart from that there are also some accounting rules that apply to taxation.