Abstract This article discusses the interactions between financial and tax accounting caused by the Tax Reform Act of 1986 in the U.S. Aim to strengthened alternative minimum tax statute. The change in corporate tax law increases the interaction between the Generally Accepted Accounting Principles' concept of financially reported income and federal tax system's definition of income. The law may directly affect both taxable financial accounting systems. The corporate management will also consider the possible effects on tax calculations when evaluating financial reporting alternatives.
Maloney et al. (Thu,) studied this question.