Design and develop an entitys accounting system

Assignment Help Financial Accounting

Reference no: EM132733218 , Length: word count:1300

MA511 Financial Accounting and Reporting

Learning Outcome 1: Apply IFRSs including the framework in the preparation of general purpose financial statements.

Learning Outcome 2: Design and develop an entity's accounting system to maintain financial information and facilitate the preparation of general purpose financial statements.

Assessment Task Description

Every year companies in Australia generally expect to have to pay some of their earnings to the Australian government in the form of income tax. Isa Ltd is a reporting entity, which prepares General Purpose Financial Statements (GPFS), engaged primarily in agricultural pursuits as well as in forestry products, including the management of its own forest reserves. Chief Executive Officer (CEO) of Isa Ltd noted that the amount paid to the Australian Taxation Office (ATO) is rarely the amount reported as income tax expense in the statement of profit or loss and other comprehensive income. CEO instructed Chief Financial Officer (CFO) to submit a report providing advice in relation to this issue.
In your report:
1. Explain the objectives of accounting for income tax in general purpose financial statements in accordance with AASB112.
2. Explain why income tax expense is usually not equal to accounting profit multiplied by the corporate tax rate.
3. Explain the basic principles that are applied in accounting for income tax to meet these objectives.
4. Describe the steps in the annual computation of deferred tax assets and liabilities.

This assignment must be written/structured in the form of a ‘business report'. That is, it must have a/an;
(a) Executive summary (between 100 to 125 words),
(b) Introduction that;
Succinctly summarizes this assignment's topic and its key issues, controversies, etc. (no more than 150 words), and
(c) Body that addresses all the requirements - see above 1-7 (no more than 1000 words),
(d) Conclusion that sums up the mains issues of this assignment (no more than 150 words), and
(e) Reference list containing all cited works.
(f) Proper English Grammar, appearance, format, etc.
At least 2 recognized journal article should be cited.

Reference no: EM132733218

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