Deferred tax assets or deferred tax liabilities

Assignment Help Financial Accounting

Reference no: EM132897971

HI5020 Corporate Accounting - Holmes Institute

Assessment - Accounting for Corporate Income Tax-Theory and Applications

This assignment aims at developing an understanding of students on different concepts of Accounting for Income tax and the application of those concepts in the practical financial setting. In addition to answering theoretical questions on different concepts on accounting for income tax, students will need to analyse the tax related disclosures made by an ASX listed company in its financial statements and the associated notes to the financial statements.

Purpose:

Assessment task:

Please answer the following questions relating to Accounting for Corporate Income Tax.

Question 1: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with suitable example.

Question 2: Will the existence of unused tax losses always lead to the recognition of a deferred tax assets? Explain your answer with suitable example.

Question 3: Do the liabilities and assets that are generated by using the 'balance sheet method' of accounting for tax appear to be consistent with the definition and recognition criteria of assets and liabilities promulgated within the Conceptual Framework?

Question 4: Under what condition deferred tax assets can be offset against deferred tax liabilities?

Question 5: Critically examine the disclosures made by an Australian Securities Exchange (ASX) listed company in its latest financial statements and associated notes regarding income tax issues. While every company will have unique tax matters and position, your discussion should highlight the following:

(i) Identify the income tax expense (income) shown in the income statement. On what basis this amount has been calculated?
(ii) Deferred tax assets/liabilities shown in the balance sheet
(iii) A detailed explanation of what has been disclosed for Income tax in the Note associated with the financial statement.
(iv) Under what basis/assumptions deferred tax assets deferred tax liabilities have been recognised?
(v) What portion of the deferred tax assets or deferred tax liabilities have originated in the current year, and what portion relate to prior years?
(vi) Summarise the accounting policies and approaches used by the company in its accounting for Income Tax.

listed in the ASX) Assignment Structure should be as the following:
Abstract - One paragraph List of Content Introduction
Body of the assignment with detailed answer on each of the required tasks Summary/Conclusion
List of references

Attachment:- Corporate Accounting.rar

Reference no: EM132897971

Questions Cloud

Why is important to have qualities such as integrity : Why is it important to have qualities such as integrity, civility, and ethics? How would describe your personal code of ethics? Are these qualities important

Why managers often emphasize short-term earnings : Based on your answer to the previous question, what are two reasons why managers often emphasize short-term earnings

Position the entry timing of the pokémon go game : Search the internet to find the latest news about the digital game Pokémon GO, which saw huge success in the summer of 2016. Answer the following questions.

Describe the origin of federal reserve system : Briefly describe the origin of the Federal Reserve System. Describe the functions of the Fed district banks?

Deferred tax assets or deferred tax liabilities : What portion of the deferred tax assets or deferred tax liabilities have originated in the current year, and what portion relate to prior years?

Explain 20 advantages of group decision making : Question one. Explain 20 advantages of group decision making.

How did john stuart mill economic laws differ : How did John Stuart Mill's economic laws differ from those of previous economic theorists? How are his ideas being implemented today?

Managing a companies marketing mix : Managing a companies' marketing mix (i.e., price, product offering, distribution channel, and promotional strategy) is challenging in a domestic business

What attempts are underway today to solve the problems : What attempts are underway today to solve the problems of overpopulation and world hunger identified by David Ricardo and Thomas R. Malthus?

User Account

All Pages