Reported Tax Paid on Cash Flow Statement (The National and International Accounting Standards Survey)

According to the International Accounting Standards, reported income tax paid, on cash flow statement must be classified as an operating activities category; but National Accounting Standards sets it as a separate category. In this research, by using information of 158 listed corporations in Tehran Stock Exchange during years 2004 to 2009, International and National patterns of tax paid classification have been examined from information content (explanatory power of stock return) and prediction power (less aberration of future total operating cash flows) criteria. The findings show that in all industries and also in each 7 industries, the International pattern has more information content in comparison with National pattern.