The going concern's accounting principle and its incorporation in corporate income tax law of Spain

Conference proceedings article


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Publication Details

Author list: Aldeia, S.
Publication year: 2019
Start page: 523
End page: 528
Number of pages: 6
Languages: English-Great Britain (EN-GB)


The main goal of this paper is to understand how the going concern’s accounting principle was

merged in the Spanish corporate income tax law. During this study the national tax law

dispositions was analysed and an effort was made towards understanding what kind of tax

figures or tax rules obey the investigated accounting principle in the studied jurisdiction. For

this purpose, the spanish tax law was examined, particularly the - Ley del Impuesto sobre

Sociedades. The results show that the going concern accounting principle was incorporated in

the spanish accounting and tax laws, mainly because it assumes the accounting profit as a

starting point to determine the taxable profit. Therefore, the accounting principles are

incorporated, expressly or implicitly, in Spain's jurisdiction. It is possible to find the going

concern accounting principle in several tax figures, such as the deduction of tax losses, the

reinvestment and the capitalization reserve. The recognition or use of these fiscal figures by the

company shows its determination in continuing to develop its activity. The case of the deduction

of tax losses is one example because it makes sense that the company's taxable capacity can be

determined under several tax periods and not an isolated period. Another is the case of

reinvestment. When the legislator foresees an exemption, a reduction or a deferral of the tax

bases in consequence of the reinvestment he deduces that this entity is fuctionig in continuity

and will continue to operate in a predictable future.


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Last updated on 2019-22-05 at 17:46