Tax depreciation versus accounting depreciation in Romania after joining the European Union

Abstract

To give a true and fair view, accounting should be led by its principles,  without being distorted by value adjustments for taxation purposes. To achieve this goal, accounting must be separated from taxation, i.e.,  the tax recognition of the magnitude of some expenditure should not be subject to their impact on accounting.  Although formally accepted,  the disconnection of taxation from accounting continues to experience difficulties.  But a certain progress can be detected. The regime of the expenditure with tax depreciation of the fixed assets is an example of separating accounting from taxation.