HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION
Assessment Details and Submission Guidelines
Trimester T1 2021
Unit Code HI5020
Unit Title Corporate Accounting
Assessment Type Individual Assignment
Assessment Title Accounting 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).
Weight 35 % of the total assessments (35 marks)
Total Marks 35 % in written report
Word limit 3000 words ±500 words
Due Date Assignment 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 Guidelines and Referencing • All 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. The following guidelines apply:
1. Reference sources in assignments are limited to sources which provide full text access to the source’s content for lecturers and markers.
2. The Reference list should be located on a separate page at the end of the essay and titled: References.
3. It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname. In addition, it MUST include a hyperlink to the full text of the cited reference source. For example;
P Hawking, B McCarthy, A Stein (2004), Second Wave ERP Education, Journal of
Information Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf
4. All assignments will require additional in-text reference details which will consist of the surname of the author/authors or name of the authoring body, year of publication, page number of content, paragraph where the content can be found.
For example;
“The company decided to implement a enterprise wide data warehouse business intelligence strategies (Hawking et al, 2004, p3(4)).”
HI5020 Corporate Accounting Individual Assignment T1 2021
Non Adherence to Referencing Guidelines
Where students do not follow the above guidelines:
1. Students who submit assignments which do not comply with the guidelines will be asked to resubmit their assignments.
2. Late penalties will apply, as per the Student Handbook each day, after the student/s have been notified of the resubmission requirements.
3. Students who comply with guidelines and the citations are “fake” will be reported for academic misconduct.
Assignment Specifications 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 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 ‘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 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?
(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)
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 criteria Marks
Abstract 1
List of content & overall presentation of the assignment 1
Introduction 1
1. Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with suitable example. 3
1. Will the existence of unused tax losses always lead to the recognition of a deferred tax assets? Explain your answer with suitable example. 3
2. 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
3. Under what condition deferred tax assets can be offset against deferred tax liabilities? 3
4. 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? 2
(ii) Deferred tax assets/liabilities shown in the balance sheet 2
(iii) A detailed explanation of what has been disclosed for Income tax in the Note associated with the financial statement. 5
(iv) Under what basis/assumptions deferred tax assets and deferred tax liabilities have been recognised? 3
(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
(vi) Summarise the accounting policies and approaches used by the company in its accounting for Income Tax. 3
Conclusion 1
TOTAL Weight 35
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
Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.
Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised.
Copying Reproducing 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.
Impersonation Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication and falsification Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.
Source: INQAAHE, 2020
Marking Rubric
Excellent
Very Good Good Satisfactory Unsatisfactory
Abstract (1) Apply judgement
List of content & overall presentation of
the assignment
(1) Apply judgement
Introduction (1) Apply judgement
1. 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.
2. 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/errors Has provided an explanation of
under what condition
unused tax
losses can
create deferred tax assets. Examples have been provided.
Major confusions/error
s. 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/error
s. 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/error
s.
3. Do the
liabilities
and assets that are generated Has shown an excellent
understanding of the balance sheet method of Has shown a very good
understanding of the balance sheet method of Has good/above basic
understanding of the balance sheet method of Has shown only basic
understanding of the balance sheet method of Has shown very poor
understanding of the balance sheet method of
by using the ‘balance sheet method’ of accounting for tax appear to be consistent with the definition and recognition criteria of assets and
liabilities
promulgate d within the Conceptual Framework
of
Accounting?
(4) accounting for
tax in relation to assets and liability
recognition as well as the assets and liabilities
defined in the Conceptual
Framework of accounting. 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. 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. 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. 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.
4. 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.
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? (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/liabilitie s shown in the balance sheet.
Has identified their sources based on the notes disclosure. Has identified the deferred tax assets/liabilitie s shown in the balance sheet.
Has identified their sources based on the notes
disclosure.
Minor errors remain. Has identified the deferred tax assets/liabilitie s shown in the balance sheet.
Has identified their sources based on the notes
disclosure.
Major errors remain. Has identified the deferred tax assets/liabilitie s 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/liabilitie s 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. A very basic explanation of
different items and issues
disclosed for
Income tax in the Note
associated with the Financial Statements has been provided. A very poor explanation of
different items and issues
disclosed for
Income tax in the Note
associated with the Financial Statements has been provided.
Minor confusions or inconsistency Major confusions or inconsistency Major confusions or inconsistency
(iv)Under what basis/assumptio ns 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 confusions Has 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 errors Has 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 Tax Has 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 errors Has 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 errors Has 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