ACC3100 Corporate Accounting Assessment 2 – Trimester 2, 2021

Assessment Type: Individual

Weighting: 30%

Learning Outcomes Assessed: ULO 1, 2 and 5

Word Limit: 3,000 words

Due Date: 15 October 2021 (Friday) 11:59 pm (AEDT)

All submissions must be submitted with a signed Ozford Institute of Higher Education Cover

Sheet via Moodle. Late submissions will attract a penalty of 5% of the assessment weighting

for each calendar day late unless an extension is granted by the lecturer.

Requirements

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 issues very carefully. Please remember some

aspects of your selected company’s treatment of its tax – 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, complete the following tasks in

a written report:

a) Briefly explain the concepts of temporary difference, taxable temporary difference,

deductible temporary difference, deferred tax assets and deferred tax liability. (5 marks)

b) What is your selected company’s tax expense in its latest financial statements? (2 marks)

c) Is this figure the same as the company tax rate times your selected company’s accounting

profit? Explain why this is, or is not, the case and highlights the reasons for differences. (4

marks)

d) Identify the deferred tax assets/liabilities that is reported in the balance sheet articulating

the possible reasons why they have been recorded. (4 marks)

e) Is there any current tax assets or income tax payable recorded by your selected company?

Why is the income tax payable not the same as income tax expense? (4 marks)

f) 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? (4 marks)

g) What do you find interesting, confusing, surprising or difficult to understand about the

treatment of tax in your selected company’s financial statements? What new insights, if

any, have you gained about how companies account for income tax as a result of examining

your selected company’s tax expense in its accounts? (4 marks)

Report Structure

The report should consist of the following components:

1) Introduction

2) Main body – The main body should address the above requirements.

3) Conclusion

4) Reference List – All references cited in the main body must be included in the reference

list. References from Wikipedia should not be used.