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.