Aff2491 Company Reporting

2585 Words May 25th, 2013 11 Pages
AFF2491 Assignment Tasks (15 Marks)

Semester 1, 2013

Assignment - AFF2491 Company Reporting Semester 1 2013 This assessment task is designed to test a student’s achievement of objectives 1, 2, 3 and 4 (refer to AFF2491 Unit Guide). It is an individual assessment task. This assignment must be handed in for successful completion of this unit. It will contribute 15% towards the final mark in this unit. The assignment consists of: Part B (7 Marks) Accounting for income tax Part C (8 Marks) Consolidation This assignment is due on Friday 10 May 2013 by 5:00pm (Week 9). Students are required to submit a hard copy in the assignment box located at Level 3, Building H, Caulfield Campus.

Electronic lodgement is NOT acceptable.

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Income tax expense 4,500 Cr. Current tax liability



Solution (iii) Happy Star Ltd Tax worksheet for the financial year ended 31 December 2012


Carrying Amount (CA) 60,000 45,000

Tax Base (TB)

Plant Goodwill Excluding Goodwill Net temporary differences Deferred tax liability 30% Beginning DTL balance Change in DTL (adjustment)

50,000 0

Taxable Temporary Differences (TTD) 10,000 45,000 55,000 45,000 10,000 3,000 1,500 1,500

Deductible Temporary Differences (DTD) 0 0 0 0 0 0 0 0

Solution (iv) Journal entry:

Income tax expense Deferred tax liability

$1,500 $1,500


Question (b) 3.5 marks (1) Prepaid rent: Opening balance as at 1 January 2012 was $1,000; rent payment during the financial year amounted to $5,000; and ending balance as at 31 December 2012 was $2,000. Income tax rate was 30 per cent.

(i) Prepare the calculation of deferred tax assets or deferred tax liabilities in relation to prepaid rent expense as at 31 December 2011 and 31 December 2012. (ii) Prepare journal entry to record the change in deferred tax assets or deferred tax liabilities

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