Reference no: EM132529527 , Length: word count:3500
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
Follow a normal distribution
: Read the scenarios below. For each data set, decide if you believe they would follow a normal distribution. Explain your reasoning and why you made that decisio
|
Describe methods of terrorism that might not have resulted
: In your analysis, be sure to look at methods of terrorism that might not have resulted in deaths but still could affect business, such as kidnappings or arson.
|
What the profit margin controllable by the office
: What The profit margin controllable by the Office and Home Divisional managers, respectively, is? The Desks R' Us Company has provided
|
How many different combinations of meals are possible
: You were invited by a close friend to help her organizing a benefit dinner, in which guests will have multiple choices of meals. According to your friend
|
Why is income tax payable not the same as income tax expense
: 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?
|
What is the maximum purchase value of transactions
: The purchase value of transactions at a grocery store is normally distributed with a mean of $244 and a variance of 4624 ($ squared)
|
Why is the given incident considered terrorism
: Discussions about terrorism often focus on foreign groups. However, as we learned this week, there are numerous groups and individuals within the United States.
|
The job search
: How can participating in groups help you in not only succeeding in your current job, but help you in finding future employment?
|
Prepared a drug dosage level
: An investigator has prepared a drug dosage level that he says will induce sleep in 80% of people with insomnia. After examining the dose, we think that what
|