HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI5020 Corporate Accounting Group Assignment T1 2020 Assessment Details and Submission Guidelines Trimester T1 2020 Unit Code HI5020 Unit Title Corporate...

HOLMES INSTITUTE

FACULTY OF
HIGHER EDUCATION


HI5020 Corporate Accounting Group Assignment T1 2020
Assessment Details and Submission Guidelines

Trimester T1 2020
Unit Code HI5020
Unit Title Corporate Accounting
Assessment Type Individual Assignment
Assessment Title Accounting for Income Tax
Purpose of the
assessment (with ULO
Mapping)
This assignment aims at developing a clear understanding of students on corporate
accounting for income tax issues. Students will develop an understanding on different
concepts used in accounting for income tax. They will also develop an understanding on
how different concepts of accounting for income tax are used by companies in the
practical setting.
(ULO 1, 2, 4, 5, 6).
Weight 40 % of the total assessments (Written assignment 30 % + Presentation 10 percent)
Total Marks Written assignment 30 marks + Presentation 10 marks
Word limit 3000 words ±500 words
Due Date Assignment submission: Final Submission of individual Assignment: 11:59 pm Friday,
Week 10

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
 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.





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HI5020 Corporate Accounting T1 2020
Assignment Specifications

Purpose:
This assignment aims at developing a clear understanding of students on corporate accounting for income tax
issues. Students will develop an understanding on different concepts used in accounting for income taxes.
They will also develop an understanding on how different concepts of accounting for income tax are used by
companies in the practical setting.

Assessment task:
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 firm’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, do the following tasks.

i Briefly explain the concepts of accounting profit, taxable profit, temporary difference, taxable temporary
difference, deductible temporary difference, defe
ed tax assets and defe
ed tax liability.

ii Briefly explain the recognition criteria of defe
ed tax assets and defe
ed tax liability.

iii What is your firm’s tax expense in its latest financial statements?

iv Is this figure the same as the company tax rate times your firm’s accounting income? Explain why this is,
or is not, the case for your firm highlighting the reasons for differences.

v Identify the defe
ed tax assets/liabilities that is reported in the balance sheet articulating the possible
easons why they have been recorded.

vi Is there any cu
ent tax assets or income tax payable recorded by your company? Why is the income tax
payable not the same as income tax expense?

vii 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?

viii Briefly explain the concepts of temporary difference and permanent difference. Identify any permanent
differences that your company may have.

ix What do you find interesting, confusing, surprising or difficult to understand about the treatment of tax
in your firm’s financial statements? What new insights, if any, have you gained about how companies
account for income tax as a result of examining your firm’s tax expense in its accounts?
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

…..
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HI5020 Corporate Accounting T1 2020
Instruction for video presentation:

Based on your written assignment you will have to make a summary video presentation ranging for 10
minutes. Your presentation should explain the assignment tasks and your key findings. You will have to upload
the presentation in You Tube and submit the You Tube link in the black board so that the marker can watch
and mark your presentation. Your assignment will be marked based on the following criteria:

Presentation Style (3
marks)
Content (4 marks) Clarity of the presentation
((3 marks)
Excellent XXXXXXXXXX
Very good XXXXXXXXXX1.75
Good XXXXXXXXXX.75-1.5
Satisfactory XXXXXXXXXX XXXXXXXXXX
Unsatisfactory XXXXXXXXXX0
Marking criteria
Marking criteria Weighting
Abstract 1%
List of content & overall presentation of the assignment 1%
Introduction 1%
Briefly explain the concepts of accounting profit, taxable profit, temporary difference,
taxable temporary difference, deductible temporary difference, defe
ed tax assets and
defe
ed tax liability. Provide suitable example for each concept.
7%
Briefly explain the recognition criteria of defe
ed tax assets and defe
ed tax liability. 2%
What is your firm’s tax expense in its latest financial statements? 1%
Is this figure the same as the company tax rate times your firm’s accounting income?
Explain why this is, or is not, the case for your firm highlighting the reasons for
differences.
3%
Identify the defe
ed tax assets/liabilities that is reported in the balance sheet
articulating the possible reasons why they have been recorded.
3%
Is there any cu
ent tax assets or income tax payable recorded by your company? Why is
the income tax payable not the same as income tax expense?
3%
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?
3%
Briefly explain the concepts of temporary difference and permanent difference. Identify
any permanent differences that your company may have.
2%
What do you find interesting, confusing, surprising or difficult to understand about the
treatment of tax in your firm’s financial statements? What new insights, if any, have you
gained about how companies account for income tax as a result of examining your firm’s
tax expense in its accounts?
2%
Conclusion 1%
Total in Written Assignment 30%
Video presentation 10%
Total 40 %


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HI5020 Corporate Accounting T1 2020
Marking Ru
ic
Excellent Very Good Good Satisfactory Unsatisfactory
Briefly explain the
concepts of
accounting profit,
taxable profit,
temporary
difference, taxable
temporary
difference,
deductible
temporary
difference, defe
ed
tax assets and
defe
ed tax
liability.
/7
All seven
concepts have
een discussed
clearly and
comprehensively
. Suitable
examples have
een given
All seven
concepts have
een discussed.
Suitable examples
have been given.
Has discussed
all seven
concepts with
examples.
Minor e
ors
emain.
Attempted to
discuss all
seven
concepts. Also
attempted to
provide
examples.
Major e
ors
emain.
Did not show
an
understanding
of the
concepts, did
not provide
appropriate
examples.

Briefly explain the
ecognition criteria
of defe
ed tax
assets and defe
ed
tax liability.
/2
The recognition
criteria of
defe
ed tax
assets and
defe
ed tax
liability have
een co
ectly
and
comprehensively
discussed
The recognition
criteria of
defe
ed tax
assets and
defe
ed tax
liability have
een discussed.
There is scope for
improvement.
The
ecognition
criteria of
defe
ed tax
assets and
defe
ed tax
liabilities have
een
discussed with
minor e
ors
and ambiguity.
The
ecognition
criteria of
defe
ed tax
assets and
defe
ed tax
liabilities have
een
discussed with
major e
ors
and ambiguity.
An attempt
has been
made to
discuss the
ecognition
criteria of
defe
ed tax
assets and
defe
ed tax
liability but
the answer is
mostly
i
elevant, or
an attempt
has not been
made to
discuss the
ecognition
criteria of
defe
ed tax
assets.
What is your firm’s
tax expense in its
latest financial
statements?
/1
The income tax
expense has
een co
ectly
identified
XXXXXXXXXXThe income
tax expense
has been
inco
ectly
identified
The income
tax expense
has not been
identified.
Page 5 of 6
HI5020 Corporate Accounting T1 2020
Is this figure the
same as the
company tax rate
times your firm’s
accounting income?
Explain why this is,
or is not, the case
for your firm
highlighting the
easons for
differences.
3
Demonstrated an
excellent
understanding of
the issue. The
easons for the
differences have
een identified
and explained
Demonstrated a
good
understanding of
the issue. The
easons for the
differences have
een identified
and explained
Demonstrated
a poor
understanding
of the issue.
The reasons
for the
differences
have been
identified and
explained with
minor e
ors
Demonstrated
a poor
understanding
of the issue.
The reasons
for the
differences
have been
identified and
explained with
major e
ors
Demonstrated
very poor or
no
understanding
of the