ys 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
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
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 '
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?
Page 3 of 9
HI5020 Corporate Accounting Individual Assignment T1 2021
(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.
(You can select the company at your discretion. The company must be listed in the ASX)
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