What is your firms tax expense

Reference no: EM132523899

HI5020 Corporate Accounting - Holmes Institute

Assessment - Accounting for Income Tax

This assignment aims at developing a clear understanding of students on corporate accounting for income tax issues. Students will develop an understanding on different concepts used in accounting for income tax. They will also develop an understanding on how different concepts of accounting for income tax are used by companies in the practical setting.

Purpose:
This assignment aims at developing a clear understanding of students on corporate accounting for income tax issues. Students will develop an understanding on different concepts used in accounting for income taxes. They will also develop an understanding on how different concepts of accounting for income tax are used by companies in the practical setting.

Assessment task:

Collect the latest annual report of an ASX listed company for the last 2 financial years. Please read the financial statements (balance sheet, income statement, cash flow statement) and notes attached to financial statements on income tax issues very carefully. Please remember some aspects of your firm's treatment of its tax - can be a very complicated area, particularly for some firms. Based on your understanding of the topic "accounting for income tax" and based on your reading of the collected annual reports, do the following tasks.

Task 1 Briefly explain the concepts of accounting profit, taxable profit, temporary difference, taxable temporary difference, deductible temporary difference, deferred tax assets and deferred tax liability.

Task 2 Briefly explain the recognition criteria of deferred tax assets and deferred tax liability.

Task 3 What is your firm's tax expense in its latest financial statements?

Task 4 Is this figure the same as the company tax rate times your firm's accounting income? Explain why this is, or is not, the case for your firm highlighting the reasons for differences.

Task 5 Identify the deferred tax assets/liabilities that is reported in the balance sheet articulating the possible reasons why they have been recorded.

Task 6 Is there any current tax assets or income tax payable recorded by your company? Why is the income tax payable not the same as income tax expense?

Task 7 Is the income tax expense shown in the income statement same as the income tax paid shown in the cash flow statement? If not, why is the difference?

Task 8 Briefly explain the concepts of temporary difference and permanent difference. Identify any permanent differences that your company may have.

Task 9 What do you find interesting, confusing, surprising or difficult to understand about the treatment of tax in your firm's financial statements? What new insights, if any, have you gained about how companies account for income tax as a result of examining your firm's tax expense in its accounts?

Attachment:- Accounting for Income Tax.rar

Reference no: EM132523899

Questions Cloud

Create proposal that will be presented to state legislature : You are a juvenile justice consultant creating a proposal that will be presented to the state legislature concerning the future of the juvenile justice system.

What is the amount of the asset revaluation : Aliah, Alex, Arl sharing profits equally had capital balances of 100,000 each. What is the amount of the asset revaluation

What should be the production specification for the panels : What should be the production specification for these panels? That is, what is the upper specification limit and what is the lower specification limit

Assess reliable peer reviewed journal articles of crimes : To identify and assess reliable peer reviewed journal articles of crimes and harms of the powerful you have read in your module. To gain knowledge of accessing

What is your firms tax expense : Briefly explain the recognition criteria of deferred tax assets and deferred tax liability and Identify the deferred tax assets/liabilities that is reported

Calculate the final adjusted cash balance : Calculate the final adjusted cash balance. While there are no errors from the bank, the company's accountant incorrectly recorded and recognized $840 in cash

What exceptions to the identified user test might Bank argue : On the basis of those statements, First Bank loaned money to the client. What exceptions to the identified user test might First Bank argue

Some personnel with basic crime scene training : You are the supervisor of a newly formed arson investigation unit. Although you have some personnel with basic crime scene training,

Examine the various lenses criminal justice policy : Criminal justice public policy is viewed through many different lenses. Please examine the various lenses criminal justice policy is viewed through.

User Account

All Pages