Theliteral meaning of Maßgeblichkeitsprinzip is Authoritativeness.
It state thatthe principle of proper accounting applicable to the preparation of commercialbalance sheet and also to the preparation of Tax balance sheet.1Whentax and accounts are interdependent- known as maßgeblichkeitsprinzip. There isclose relation between financial accounts and tax accounts is manifested inmaßgeblichkeitsprinzip which means that commercial accounting rules are bindingfor tax purpose.2Thissystem is generally used in Germany, U.S.A and Great Britain. This means thatthe financial statement generally determine the tax account or tax base.
InGermany it is anchored in §5 para.1 sentence 1 EstG.3Yes itsusage influence financial accounting. Accounting systems exhibits severalarrangements that privately communicate information to insiders (supervisoryboard).4Due to these, the key financing and contracting parties seem reasonably wellinformed.
Example: Suppose Acompany 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 inthe 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 dueto relevance of the trade. 7. Answer:Eachcountry in Europe has its own accounting body and accounting qualification.
Nowa days accountants have to face lots of challenges due to globalisation,tighter industry regulation, and greater focus on ethics and so on.From very ancienttime accountancy have very important role in business world. As it is one ofthe fast growing and respectable profession accountants are always in theexclusive community. Following are some important points to become professionalaccountant in Germany, U.S.A and Great Britain.
Germany – Professionalaccountants are known as ´Writschaftsprufer´ in German language. Students firsthave to qualify as a ´steueberater´ (A chartered German tax advisor).Before deciding tobecome a professional accountant in Germany, person must have to pass threewritten examination and one oral examination.
On a long termaverage only 50% of applicants are successful. U.S.A – CPA Students must complete a program of study inaccounting at a college or university before passing the CPA Examination.Students must also obtain a certain amount of professional work experience inpublic accounting, although this is not required in all states.5InU.S.
A students also have to pass professional ethics exam. And relevant workexperience is also required.1 SCHMIDT, Latz,Principle of Principle and Unit Balance.2 HERZIG,Tax Versuscommercial Accounting in Germany, in:THORELL (ed), The Influence of CorporateLaw and Accounting Principles in determining Taxable Income, IFA CONgress 1996,Vol.
21b (1996)3 CHRISTIANLEUZ; JENS WUSTEMANN, The Role of Accounting in the German Financial System4 ALFORD,A.,J.JONES,R.LEFTWICH,ANDM.ZMIJEWSKI:1993, The Relative Informativeness of Accounting Disclosures indifferent Countries Supplement, 183-2245 https://www.careersinaudit.com/article/european-accounting-qualifications-explained/