If changes in accounting policies involve changes in accounting income or expenses, they will inevitably affect the increase or decrease in corporate accounting profits. However, whether to adjust income tax cannot be judged based on changes in corporate accounting profits, but on accounting policies. The judgment standard is whether the change can cause an increase or decrease in taxable income. If a change in an accounting policy causes an increase or decrease in the company's accounting profits but also causes an increase or decrease in the taxable income, the income tax must be adjusted; if a change in an accounting policy only causes an increase or decrease in the company's accounting profits, the income tax must be adjusted. Without affecting taxable income, no income tax adjustment is required. The specific judgment can be made according to the following principles:

First, for income and expense items that affect changes in corporate accounting profits, transactions or events that are recognized at the same time in tax law usually require adjustments to income tax. . If the recognition standard of the enterprise's main business income changes due to changes in accounting policies, resulting in an increase or decrease in the main business income, the accounting system and tax law will regard the main business income as a component of profit, and it will be recognized in the current period when it is realized. confirm. Therefore, if changes in accounting policies cause increases or decreases in main business income, income tax will need to be adjusted.

Second, for income and expense items that affect changes in corporate accounting profits, permanent differences in income and expenses that are not recognized under tax law generally do not require adjustment to income tax. For example, if an enterprise obtains interest income from treasury bills, when the income tax rate of the investing enterprise is not higher than the income tax rate of the invested enterprise (this is a permanent difference), the investment income recognized by the investing enterprise will increase the accounting profit in accounting terms, but in terms of tax law It is exempt from paying income tax and is not included in the taxable income of the enterprise. Therefore, if there is an increase or decrease in treasury bill interest income or investment income (the income tax rate of the investing enterprise is not higher than the income tax rate of the invested enterprise) due to changes in accounting policies, the income tax will not be affected, and the income tax will not be adjusted when calculating the cumulative impact of changes in accounting policies.

Third, for income and expense items that affect changes in corporate accounting profits, the timing difference in recognizing these income and expenses in tax laws usually requires adjustment of income tax. For example, when an investing enterprise uses the equity method to account for the invested enterprise, and the investing enterprise's income tax rate is higher than the invested enterprise's income tax rate (this is a temporal difference), the tax law requires the investing enterprise to pay additional income tax on the investment income recognized. This is Income tax adjustments need to be made.