HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION Assessment Details and Submission Guidelines Trimester Unit Code Unit Title Assessment Type Assessment Title Weight Total Marks Word limit T1 2020 HI5020...

Assessment Details and Submission Guidelines

Trimester
Unit Code
Unit Title Assessment Type Assessment Title

Weight Total Marks Word limit

T1 2020
HI5020
Corporate Accounting Individual Assignment

40 % of the total assessments (Written assignment 30 % + Presentation 10 percent) Written assignment 30 marks + Presentation 10 marks
3000 words ±500 words

Accounting for Income Tax

Purpose of the assessment (with ULO Mapping)

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.

(ULO 1, 2, 4, 5, 6).

HI5020 Corporate Accounting Group Assignment T1 2020

Assignment Specifications

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.

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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 issuesvery carefully. Please remember some aspects of your firm’s treatment of itstax–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.

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

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

iiiWhat is your firm’s tax expense in its latest financial statements?

ivIs 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.

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

vi 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?

vii 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?

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

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

Assignment Structure should be as the following:

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

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