What question did this study set out to answer?

To examine how recent tax legislation and financial reporting standards impact nonpublic firms' reporting choices.

The Tax Basis Financial Reporting Alternative for Nonpublic Firms.

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To examine how recent tax legislation and financial reporting standards impact nonpublic firms' reporting choices.
Analysis of tax code changes, including the Tax Reform Act of 1986 and the Revenue Act of 1987.
Review of Financial Accounting Standards Board's SFAS 96 and its implications on tax accounting.
Evaluation of changes in financial reporting practices for small, nonpublic firms.
Tax law changes may encourage nonpublic firms to prefer tax basis reporting over GAAP.
Increased complexity due to tax legislation impacts reporting methods.
Specific provisions in the Tax Reform Act and SFAS 96 necessitate alterations in accounting practices.

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This article reveals how changes in tax laws influence nonpublic firms to favor tax basis reporting.

Anthony et al. (1988) studied this question.

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