Illustrating the Relationship Between Accounting and Taxation – A Romanian Approach. The Ishikawa Diagram

  • Cristina TIMOFTE (COCA) PhD Student at Ştefan cel Mare University, Suceava, Romania
  • Simona-Maria TANASĂ (BRÎNZARU) PhD Student at Ştefan cel Mare University, Suceava, Romania
Keywords: Accounting; taxation; cause and effect; the Ishikawa diagram.


It can be stated that in Romania there is a clear dependence of taxation on accounting that one can argue biases the quality of the information provided by the accounting information system. In this paper the authors analyzed, by use of environmental analysis and different methodological methods several possible causes that conduct to the statement of the following paradigm: “The accounting information quality is biased by taxation”. In order to achieve this, as an environmental analysis tool the Ishikawa diagram or cause-effect diagram was used. The main findings are that in Romania, to a large extent, accounting is not disconnected from taxation, although steps were made in this direction through the adoption and implementation by the listed companies of the IFRS. There can be noticed a book-tax alignment tendency in what concerns the accounting result and the tax result, although there are regulatory differences meant to address the possible temptation towards the manipulation of the accounting result by the taxpayer. To some extent it can be argued that the main user of the financial reports issued according to accounting rules and regulations is mainly the state and to a smaller extent the other stakeholders and that sometimes professional judgments made by specialists when choosing accounting policies and treatments are influenced by taxation.


[1] Ristea M. Bază şi alternativ în contabilitatea întreprinderii [Basic and alternative in the entity’s accounting], Bucureşti: Ed. Tribuna Economică, 2003.
[2] Bunget OC., Dumitrescu AC. Accounting treatment of deferred income taxes according to the requirements of the Romanian accounting regulations [Internet]. The Annals of University of Oradea – Economic Science, section Finances, Banks and Accounting: 1039. 2008, Tom XVII, 3. Retrieved from:
[3] Paliu-Popa L., Ecobici N. Accounting Implications of Taxation [Internet], 2007, MPRA, posted Dec. 2008; 12186: 21. available from:
[4] Fekete S., Mustaţă R., Damagum Y., Matiș D., Popa I. Explaining accounting policy choices of SMEs. Empirical research on the evaluation methods [Internet]. European Research Studies Journal. 2010; XIII (1) 2010: 33-48.
[5] Stanciu T., Iliescu V. PROJECT.EDU The management of educational projects A practical guide, 2016: 63.
[6] Gurău M., Grigore MZ. Study about the Relationship between Accounting and Taxation. Proposals for Disconnection, [Internet], 2015 Finance - Accountancy Department Nicolae Titulescu University, Geo. 3(1): 96, available from:
[7] Cuzdriorean DD., Matiş D., The relationship between accounting and taxation insight the European Union: the influence of the international accounting regulation, [Internet]. Annales Universitatis Apulensis Series Oeconomica. 2012; 14(1): 28. Retrieved from:;
[8] Jiraskova S., Molin J. University of Economics Prague, IFRS Adoption for accounting and tax purposes: an issue based on the Czech Republic as compared with other European countries, 2015, Procedia Economics and Finance 25, 2015; 53- 58: 56.
[9] Oprean VB., Oprean D. Dileme ale ingineriei organizaţiilor: complementaritatea relaţiilor contabilitate-fiscalitate în context macro şi microeconomic, [Dilemmas of entities construction: complementarities of accounting-taxation relations at macro and microeconomic level], [Internet], RFPC [Public Finances and Accounting Issue no. 2/2012]. 2012: 2: 21. Retrieved from:
[10] Pop I., Fekete S. Accounting vs. taxation. A behavioral analysis of principles, [Internet]. Forum on Economics and Business. 2012; 15 (6): 67–86: 78. Retrieved from:
[11] Fekete S., Cuzdriorean DD., Sucală L., Matiş D., An attempt at measuring the fiscal influence over accounting. Empirical evidence from Romanian listed companies. Working Paper; Feb. 2009; 35. Retrieved from: or
How to Cite
TIMOFTE (COCA), C., & TANASĂ (BRÎNZARU), S.-M. (2018). Illustrating the Relationship Between Accounting and Taxation – A Romanian Approach. The Ishikawa Diagram. LUMEN Proceedings, 6(1), 413-420.