ABSTRACT
Fair value accounting has received considerable attention by standard-setters, policy-makers and academic research (see, for example, the other chapters in this companion) over the past years. However, policy-makers and scholars have directed limited attention to the implications of fair value accounting for taxation. One potential reason is that due to a lack of book-tax conformity as, for example, in the United States, the discussion on fair value accounting for financial reporting can be led without considering tax consequences. In this chapter, we aim to fill this gap by discussing potential effects of defining taxable income based on fair value accounting, or fair value taxation.
