A Proposed Accounting Framework for Developing Tax Accounting Information Using the Economic Value Added (EVA) Index: A Field Study

This academic research explores the feasibility of employing an accounting measurement framework based on the Economic Value Added (EVA) Index to develop and improve the tax system in Egyptian and Arab enterprises. This index is closely linked to improving the quality of accounting information for economic units that provide the tax authority with the tax base. The research's significance lies in the fact that traditional financial reporting models based on historical cost fail to reflect the enterprise's true economic reality, leading to distortions in determining the tax base and the loss of public treasury revenues.
This research aims to propose an integrated accounting framework based on the Economic Value Added (EVA) indicator as a performance measurement and evaluation tool for developing the tax system. It highlights the implications of this framework for improving tax revenues and forecasting accounting information in light of the latest International Financial Reporting Standards (IFRS) issued for the period 2023–2025. The research employs a dual methodology, combining deductive reasoning for theoretical development with inductive reasoning for analyzing the results of a field study conducted on a sample of certified public accountants and tax officials.
The research concludes that implementing EVA enhances the disclosure of accounting and economic information and improves the tax system's ability to accurately determine the true tax base, compared with traditional profit-based accounting models. The research also underscores the value of integrating EVA and fair value within a progressive tax system that leverages the updated conceptual framework issued by the International Accounting Standards Board (IASB, 2023).