Tax result <> Bookkeeping result. In fact bookkeeping result as per US GAAP van be different than the result under IFRS or regulations of other countries (for e

Tax result <> Bookkeeping result. In fact bookkeeping result as per US GAAP van be different than the result under IFRS or regulations of other countries (for example due to different approach to depreciation). Many countries calculate tax excluding accruals to stop fraud. When you have the cash now and need to pay tax next year, you could as well "run away with the money". Or even not run with the money, just spend it - and then end up unable to pay tax for two years. Technically this fraud could be committed at any moment, but when the cash would lie on your account for a year, you could think abiut it more often. Also conceptually: if accruals are allowed, you can basically shape your tax result to never pay any tax? Make bigger accruals every year.