Khairunnisa Rahinaningtyas

16/397035/EK/20991
Taxation
Summary 10 - Fiscal Reconciliation
fiscal whereas there are only two methods: the
average and FIFO.
Fiscal reconciliation is an adjustment
process for commercial profit that is not suitable - Method of Depreciation and Amortization,
with fiscal provisions to find taxable net income. which is in the commercial may choose from all
There are some important aspects of fiscal the existing methods of depreciation, whereas in
reconciliation; deductible expense, un- non-tangible assets for the fiscal building only
deductible expense, depreciation expense, and two methods: straight line and declining balance
amortization expense. and to assets in the form of buildings only
straight-line method, as well as with age
1. Deductible expenses is expenses for
economic and commercial value of the residue
obtaining, collecting and maintaining
can determine for themselves while in fiscal
income. Examples: direct/indirect
governed by the Laws of Taxation.
expense, contributions to pension funds
foreign exchange loss, etc. - Method of Elimination of receivables, which is
2. Un-deductible expenses include profit in a commercial based backup methods, while in
distribution, reserved fund Fiscal deletion takes place at the receivables
establishment, income tax, grant, really are not collectible
donation & inheritance, etc.
3. Treatment differences and Revenue and
The cause of the differences with the Expense Recognition
commercial financial report fiscal:
- Income recognized by a commercial but not
1. Differences Accounting Principles, some recognized by the fiscal should be deducted
things that have been recognized in FAS but not from the commercial profit.
recognized in Fiscal:
- Certain income in the commercial and tax shall
- Principle of Conservatism, that is inventory be final it must be deducted from the profits of
valuation with Lower of Cost or Market and commercial
valuation of receivables with the estimated net
- Other income and extraordinary items, namely:
realizable value are recognized in FAS but not
recognized in Fiscal a. Losses by commercial enterprises abroad are
not deductible against income
- Principle of Cost, labor in kind included in the
determination of the cost price of manufactured b. Losses in the country according to the Fiscal
goods are recognized in FAS but not according can be deducted against the total income of
to the Fiscal. origin do not over 5 years
- Matching principle between costs and - Costs are recognized under commercial but not
outcomes, ie the depreciation cost is calculated recognized by the fiscal
when the asset has been produced by a
commercial, but according to the Fiscal can be
done before these assets generate
2. Differences Accounting Methods and
Procedures
- Inventory Valuation Method, which is in
commercial permits selecting from all existing
methods in determining the cost of inventories in