Reference no: EM133046204

MAA363 Corporate Accounting - Deakin University

Assessment Task 1

Learning Outcome 1: Apply accounting principles and techniques in a variety of business scenarios in line with accounting standards.

Learning Outcome 2: Identify and analyse complex business problems.

Learning Outcome 3: Develop strategies to resolve business problems, and report on these resolutions in line with accounting standards.

Learning Outcome 4: Critically evaluate and reflect on contemporary business issues.

Assignment 1 Questions Part A

Write a critical reflection about the article titled, "Business groups call for halting fair value accounting as virus spreads" by Nicola White published in the online news portal Bloomberg Tax Portal.

A pdf version of the article is available in the Assignment folder. The article can be also found here (Business Group Calls for Halting Fair Value Accounting as Virus Spreads (bloombergtax))

You are required to do appropriate research. In your reflection include in-text Citations taken from appropriate authoritative sources (note that Harvard referencing is required, including a Reference List).

Your critical reflection should highlight, but not limited to, the following points.

a) Describe some of the major challenges in relation to the application of fair value accounting during the global pandemic. In your view, what can be done to alleviate the challenges?

b) According to this article there is a call for suspension of fair value accounting technique during the global pandemic. Do you agree that regulators should suspend fair value accounting? Provide necessary justifications to support your answer.

c) What is your personal take, as an accounting student, after conducting this research?

Part B

1. Although the new accounting standard for leases created a more level playing field in providing transparent information about leases to all market participants, there are mixed views expressed by investors as to whether the new standard delivers the asserted benefits for financial statement analysis.
Required
Discuss the above statement and evaluate its validity.
(Max 350 words, excluding Reference List)

2. According to the Australian accounting standards all companies are required to follow impairment model for subsequent measurement of goodwill. However, due to the uncertainty associated with the global pandemic, there is a call for consideration whether the current approach is suitable for subsequent measurement of goodwill.

Required
Do you think that accounting regulators should replace impairment model with amortisation model for subsequent measurement of goodwill? Provide necessary justifications to support your answer.

3. This assignment relates to Topic 4 on Income Tax and requires the following to be submitted: An excel workbook with the following four (4) sheets:
• Sheet 1: Background Information
• Sheet 2: Calculating Taxable Income
• Sheet 3: Calculating DTA/DTL
• Sheet 4: Change in tax rate

Required:

a) Calculate the taxable income/tax loss and the current tax liability (if any) for the financial year ended 30th June 2022. Prepare a journal entry to recognise the current tax liability/tax loss (In Sheet 2: Calculating Taxable Income).

b) Calculate deferred tax asset and deferred tax liability balances as at 30th June 2022. Prepare the deferred tax journal entries for the year ended 30th June 2022. Note that you are NOT required to prepare journals to offset the deferred tax asset and deferred tax liability balances (In Sheet 3: Calculating DTA/DTL 2022).

c) Assume that by 1 December 2022 there was a change in tax rate. With reference to AASB112 Income Taxes, discuss the accounting treatment of the deferred tax asset and deferred tax liability balances as of 1 December 2022 following a lower tax threshold for the 2022-2023 financial year. Prepare the journal entries to record the effect of change in tax rate (In Sheet 4: Change in Tax Rate).

Attachment:- Corporate Accounting.rar