The Students first have to qualify as a ´steueberater´

The
literal meaning of Maßgeblichkeitsprinzip is Authoritativeness. It state that
the principle of proper accounting applicable to the preparation of commercial
balance sheet and also to the preparation of Tax balance sheet.1When
tax and accounts are interdependent- known as maßgeblichkeitsprinzip. There is
close relation between financial accounts and tax accounts is manifested in
maßgeblichkeitsprinzip which means that commercial accounting rules are binding
for tax purpose.2

This
system is generally used in Germany, U.S.A and Great Britain. This means that
the financial statement generally determine the tax account or tax base. In
Germany it is anchored in §5 para.1 sentence 1 EstG.3

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Yes its
usage influence financial accounting. Accounting systems exhibits several
arrangements that privately communicate information to insiders (supervisory
board).4
Due to these, the key financing and contracting parties seem reasonably well
informed.

Example: Suppose A
company prepare its annual account on 31.12.2009. In previous years company pay
€5,000 to its tax advisor for the 2009 tax return. Since the cost include in
the balance sheet as at 31.12.1009 therefore reduce the profit for 2009 by
€5,000. In tax term this provision is recognized for the tax balance sheet due
to relevance of the trade.

 

7.
 Answer:

Each
country in Europe has its own accounting body and accounting qualification. Now
a days accountants have to face lots of challenges due to globalisation,
tighter industry regulation, and greater focus on ethics and so on.

From very ancient
time accountancy have very important role in business world. As it is one of
the fast growing and respectable profession accountants are always in the
exclusive community. Following are some important points to become professional
accountant in Germany, U.S.A and Great Britain.

Germany – Professional
accountants are known as ´Writschaftsprufer´ in German language. Students first
have to qualify as a ´steueberater´ (A chartered German tax advisor).

Before deciding to
become a professional accountant in Germany, person must have to pass three
written examination and one oral examination.

On a long term
average only 50% of applicants are successful.

U.S.A – CPA Students must complete a program of study in
accounting at a college or university before passing the CPA Examination.
Students must also obtain a certain amount of professional work experience in
public accounting, although this is not required in all states.5

In
U.S.A students also have to pass professional ethics exam. And relevant work
experience is also required.

1 SCHMIDT, Latz,
Principle of Principle and Unit Balance.

2 HERZIG,Tax Versus
commercial Accounting in Germany, in:THORELL (ed), The Influence of Corporate
Law and Accounting Principles in determining Taxable Income, IFA CONgress 1996,
Vol. 21b (1996)

3 CHRISTIAN
LEUZ; JENS WUSTEMANN, The Role of Accounting in the German Financial System

4 ALFORD,A.,J.JONES,R.LEFTWICH,AND
M.ZMIJEWSKI:1993, The Relative Informativeness of Accounting Disclosures in
different Countries Supplement, 183-224

5 https://www.careersinaudit.com/article/european-accounting-qualifications-explained/