Issues of integrating tax and financial accounting in the context of IFRS implementation

Introduction. One of the key challenges faced by professionals in the field of financial accounting today is the coordination between financial and tax accounting. As is well known, there are numerous differences between these two types of accounting. Therefore, the need to bring them as close together as possible is increasingly important. While eliminating all discrepancies between financial and tax accounting is unrealistic, minimizing them would contribute to greater transparency and efficiency. Taxation and financial accounting currently represent critical components of a business entity’s economic activity. Methodology. The research is grounded in the dialectical method of scientific inquiry. General scientific and specific research methods were applied, including analysis, classification, abstraction, synthesis, induction, and deduction. Results. Based on the findings, the authors argue that for effective management and to fully meet stakeholder information needs, accounting in an organization should be considered as an integrated system comprising financial, managerial, and tax components. Such an integrated accounting system will enable the rational use of intellectual, informational, and financial resources within a business structure. Thus, the integration of tax and financial accounting should follow two directions. First, national tax legislation should incorporate a greater number of non-deterministic norms—defined as legal norms that are not strictly unambiguous. Second, it is essential to align the systems for organizing accounting processes.