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HI5020 T1 2021 Corporate Accounting Holmes

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HI5020 Corporate Accounting T1 2021

Assessment Details and Submission Guidelines
TrimesterT1 2021
Unit CodeHI5020
Unit TitleCorporate Accounting
Assessment TypeIndividual Assignment
Assessment TitleAccounting for Corporate Income Tax-Theory and Applications
Purpose of the assessment (with ULO Mapping)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.  (ULO 1, 3, 4, 5).
Weight35 % of the total assessments (35 marks)
Total Marks35 % in written report
Word limit3000 words ±500 words
Due DateAssignment submission: Final Submission of individual Assignment: Wednesday, Week 10, 11:59 pm   Late submission incurs penalties of five (5) % of the assessment value per calendar day unless an extension and/or special consideration has been granted by the lecturer prior to the assessment deadline.
Submission GuidelinesAll work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page. The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.  Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style.

Assignment Specifications HI5020

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 a suitable example.

Question 2:  Will the existence of unused tax losses always lead to the recognition of  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 conditions can deferred tax assets be offset against deferred tax liabilities?

Question 5: Critically examine thedisclosures 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:

  • Identify the income tax expense (income) shown in the income statement. On what basis has this amount been calculated?
  • Deferred tax assets/liabilities shown in the balance sheet
  • A detailed explanation of what has been disclosed for Income tax in the Notes associated with the financial statement.
  • Under what basis/assumptions have deferred tax assets and deferred tax liabilities been recognised?
  • What portion of the deferred tax assets or deferred tax liabilities have originated in the current year, and what portion relate to prior years?
  • 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)

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

Marking criteria           

Marking criteriaMarks
Abstract1
List of content & overall presentation of the assignment1
Introduction1
Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with a suitable example.3
Will the existence of unused tax losses always lead to the recognition of  deferred tax assets? Explain your answer with suitable example.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 of Accounting?4
Under what conditions can deferred tax assets be offset against deferred tax liabilities?3
Critically examine thedisclosures 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: 
Identify the income tax expense (income) shown in the income statement. On what basis this amount has been calculated?2
Deferred tax assets/liabilities shown in the balance sheet2
A detailed explanation of what has been disclosed for Income tax in the Notes associated with the financial statement.5
Under what basis/assumptions have deferred tax assets and deferred tax liabilities been recognised?3
What portion of the deferred tax assets or deferred tax liabilities have originated in the current year, and what portion relate to prior years?2
Summarise the accounting policies and approaches used by the company in its accounting for Income Tax.3
Conclusion1
TOTAL Weight35

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines.  Table 1 identifies the six categories of Academic Integrity breaches.  If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources.  Many of these resources can also be found through the Study Sills link on Blackboard. 

Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.

Table 1: Six categories of Academic Integrity breaches

PlagiarismReproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.
CollusionWorking with one or more other individuals to complete an assignment, in a way that is not authorised.
CopyingReproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
ImpersonationFalsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheatingContracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication and falsificationManipulating or inventing data with the intent of supporting false conclusions, including manipulating images.

Source: INQAAHE, 2020

Marking Rubric

 Excellent  Very GoodGoodSatisfactoryUnsatisfactory  
Abstract (1)Apply judgement
List of content & overall presentation of the assignment (1)Apply judgement
Introduction (1)Apply judgement
Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with suitable example. (3)The reason for the deferred tax assets and liabilities have been explained with suitable example. The concepts of temporary difference, taxable temporary difference, deductible temporary differences have been linked to DTA and DTL.The reason for the deferred tax assets and liabilities have been explained with suitable example. The concepts of temporary difference, taxable temporary difference, deductible temporary differences have been linked to DTA and DTL. Minor confusions or errors.The reason for the deferred tax assets and liabilities have been explained with suitable example. The concepts of temporary difference, taxable temporary difference, deductible temporary differences have been linked to DTA and DTL. Major confusions or errors.The reason for the deferred tax assets and liabilities have been explained. Example not clear. The concepts of temporary difference, taxable temporary difference, deductible temporary differences have not been linked to DTA and DTL. Major confusions or errors.The reason for the deferred tax assets and liabilities have been explained. Example not clear. The concepts of temporary differences, taxable temporary differences, deductible temporary differences have not been linked to DTA and DTL. Major confusions or errors.
Will the existence of unused tax losses always lead to the recognition of a deferred tax assets? Explain your answer with suitable example. (3)An excellent explanation of under what condition unused tax losses can create deferred tax assets. Example provided is very clear.Has provided a clear explanation of under what condition unused tax losses can create deferred tax assets. Examples have been provided. Minor confusion/errorsHas provided an explanation of under what condition unused tax losses can create deferred tax assets. Examples have been provided. Major confusions/errors.Has attempted to provide an explanation of under what condition unused tax losses can create deferred tax assets. No example has been provided. Major confusions/errors.Has incorrectly attempted to provide an explanation of under what condition unused tax losses can create deferred tax assets. No example has been provided. major confusions/errors.
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 of Accounting?(4)Has shown an excellent understanding of the balance sheet method of accounting for tax in relation to assets and liability recognition as well as the assets and liabilities defined in the Conceptual Framework of accounting.Has shown a very good understanding of the balance sheet method of accounting for tax in relation to assets and liability recognition as well as the assets and liabilities defined in the Conceptual Framework of accounting. Minor error remains.Has good/above basic understanding of the balance sheet method of accounting for tax in relation to assets and liability recognition as well as the assets and liabilities defined in the Conceptual Framework of accounting. Major error remains.Has shown only basic understanding of the balance sheet method of accounting for tax in relation to assets and liability recognition as well as the assets and liabilities defined in the Conceptual Framework of accounting. Major error remains.Has shown very poor understanding of the balance sheet method of accounting for tax in relation to assets and liability recognition as well as the assets and liabilities defined in the Conceptual Framework of accounting. Major error remains.
Under what condition deferred tax assets can be offset against deferred tax liabilities? (3)An excellent explanation of the condition for off-setting the deferred tax assets with deferred tax liability has been provided with specific reference to section of AASB.A very good explanation of the condition for off-setting the deferred tax assets with deferred tax liability has been provided without specific reference to section of AASB.A good explanation of the condition for off-setting the deferred tax assets with deferred tax liability has been provided. Minor confusions remain.A very basic explanation of the condition for off-setting the deferred tax assets with deferred tax liability has been provided. Major confusions remain.A very poor explanation of the condition for off-setting the deferred tax assets with deferred tax liability has been provided. Major confusions remain.
Critically examine thedisclosures 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? (2)Has correctly identified the income tax expense or income tax credit for net loss. Has provided an excellent explanation on the basis for calculation of the income tax expense/credit.Has correctly identified the income tax expense or income tax credit for net loss. Has provided a good explanation on the basis for calculation of the income tax expense/credit.Has correctly identified the income tax expense or income tax credit for net loss. Has provided a basic explanation on the basis for calculation of the income tax expense/credit.Has correctly identified the income tax expense or income tax credit for net loss. Has not provided an explanation on the basis for calculation of the income tax expense/credit.Has not correctly identified the income tax expense or income tax credit for net loss. Has not provided an explanation on the basis for calculation of the income tax expense/credit.
(ii) Identify the deferred tax assets/liabilities shown in the balance sheet. Identify their sources based on the notes disclosure (2)Has identified the deferred tax assets/liabilities shown in the balance sheet. Has identified their sources based on the notes disclosure.Has identified the deferred tax assets/liabilities shown in the balance sheet. Has identified their sources based on the notes disclosure. Minor errors remain.Has identified the deferred tax assets/liabilities shown in the balance sheet. Has identified their sources based on the notes disclosure. Major errors remain.Has identified the deferred tax assets/liabilities shown in the balance sheet. Has not been able to identify their sources based on the notes disclosure.Has not been identified the deferred tax assets/liabilities shown in the balance sheet. Has not been able to identify their sources based on the notes disclosure.
(iii) A detailed explanation of what has been disclosed for Income tax in the Note associated with the financial statement. (5)An excellent explanation of different items and issues disclosed for Income tax in the Note associated with the Financial Statements has been provided.A very good explanation of different items and issues disclosed for Income tax in the Note associated with the Financial Statements has been provided.A good explanation of different items and issues disclosed for Income tax in the Note associated with the Financial Statements has been provided. Minor confusions or inconsistencyA very basic explanation of different items and issues disclosed for Income tax in the Note associated with the Financial Statements has been provided. Major confusions or inconsistencyA very poor explanation of different items and issues disclosed for Income tax in the Note associated with the Financial Statements has been provided. Major confusions or inconsistency
(iv)Under what basis/assumptions deferred tax assets and deferred tax liabilities have been recognised? (3)Has shown an excellent understanding of the basis and assumptions used by the company in recognising the deferred tax assets and deferred tax liabilities.Has shown a very good level of understanding of the basis and assumptions used by the company in recognising the deferred tax assets and deferred tax liabilities.Has shown a good level of understanding of the basis and assumptions used by the company in recognising the deferred tax assets and deferred tax liabilities. Minor confusionsHas shown a basic level of understanding of the basis and assumptions used by the company in recognising the deferred tax assets and deferred tax liabilities. Major confusions and errorsHas shown a very poor level of understanding of the basis and assumptions used by the company in recognising the deferred tax assets and deferred tax liabilities. Major confusions and errors
(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? (2)Has clearly identified the deferred tax assets and deferred tax liabilities arising in the current year, and in the previous years. Has shown excellent understanding on how the balances of DTA and DTL have changed during the year.Has clearly identified the deferred tax assets and deferred tax liabilities arising in the current year, and in the previous years. Has shown good level of understanding on how the balances of DTA and DTL have changed during the year.Has clearly identified the deferred tax assets and deferred tax liabilities arising in the current year, and in the previous years. Has shown basic level of understanding on how the balances of DTA and DTL have changed during the year.Has been able to identify deferred tax assets and deferred tax liabilities arising in the current year, and in the previous years. Does not demonstrate any understanding on how the balances of DTA and DTL have changed during the year.Has not been able to identify deferred tax assets and deferred tax liabilities arising in the current year, and in the previous years. Does not demonstrate any understanding on how the balances of DTA and DTL have changed during the year.
(vi)Summarise the accounting policies and approaches used by the company in its accounting for Income Tax. (4)Has provided an excellent summary of accounting policies and approaches disclosed by the company in the Notes, for its accounting for Income TaxHas provided a very good summary of accounting policies and approaches disclosed by the company in the Notes, for its accounting for Income Tax.Has provided a good summary of accounting policies and approaches disclosed by the company in the Notes, for its accounting for Income Tax. Minor confusions or errorsHas provided a very basic summary of accounting policies and approaches disclosed by the company in the Notes, for its accounting for Income Tax. Major confusions or errorsHas provided a very poor or irrelevant summary of accounting policies and approaches disclosed by the company in the Notes,  for its accounting for Income Tax. Major confusions or errors
Conclusions (1)Apply judgement
Total 35     

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