The Effect of Income Smoothing on Taxable Income that Determined by Iranian Association of Certified Public Accountants and Auditing Organization

Document Type : Original Article

Authors
Farzaneh Heidarpoor 1
Mohammad Ali Arab Mokhtary 2
1 Assistant Professor, Islamic Azad University , Central Tehran Branch
2 M.A in Accounting, Islamic Azad University, Central Tehran Branch
Abstract
In this paper, we study effect of Income Smoothing on taxable income determined by Auditing Organization and association of Certified Public Accountants in the companies admitted to Tehran Stock Exchange. companies admitted to Tehran Stock Exchange from 2005 to 2010 and are not amongst investing and banking brokers and they include 272 companies selected as statistical community and their information picked up from http://rdis.ir and transferred to spread sheet software and by necessary calculation and on basis of Eckel index 151 companies as income smoother and 121 companies as non- income smoother are recognized. Therefore by spss-18 software and Correlation Coefficient Test of Pearson, Correlation Coefficient between declared profit and determined taxable income for income smoother and Non- income smoother companies were calculated and comparing between 2 communities by Correlation Coefficient Test result did not indicate any outstanding difference between 2 Correlation Coefficient.
Keywords
Income Smoothing
taxable income
Auditing Organization
association of Certified Public Accountants and Eckel index