Article 22 of the Corporation Tax Act requires that a firm should determine its taxable income on the basis of accounting income in conformity with the accounting standards generally accepted as fair and appropriate. On the other hand, there are a variety of accounting standards including international convergence-oriented accounting standards for global firms and cost and benefit-oriented accounting standards for small and medium-sized firms in the financial reporting system in these days. Such diversification of accounting standards has induced a lot of disputes between firms and tax authorities. This study discusses the contents and points out issues of the accounting standards generally accepted as fair and appropriate for tax purposes.