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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:

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.

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.

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

Assessment Design - Adapted Harvard Referencing
Holmes has been implementing as a pilot program using a revised/adapted Harvard approach to referencing. The following guidelines apply:
• Reference sources in assignments are limited to sources which provide full text access to the source's content for lecturers and markers.
• The Reference list should be located on a separate page at the end of the essay and titled: References.
• It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname. In addition, it MUST include a hyperlink to the full text of the cited reference source.
• All assignments will require additional in-text reference details, which will consist of the surname of the author/authors or name of the authoring body, year of publication, page number of content. paragraph whe 2 the content can be found.
For example;
"The company decided to implement a enterprise wide data warehouse business intelligence strategies (Hawking et al, 2004, p3(4))."

Attachment:- Corporate Accounting.rar