Instructions for the report This task requires you to prepare a report to evaluate and comment on recognition and measurement regarding deferred tax assets and deferred tax liabilities. You need to...

Instructions for the report This task requires you to prepare a report to evaluate and comment on recognition and measurement regarding deferred tax assets and deferred tax liabilities. You need to choose a company listed on the Australian Stock Exchange (ASX) and provide your evaluation regarding relevant presentation of deferred tax assets and liabilities. Your comments or evaluation can refer to paragraphs of relevant Australian Accounting Standards (AASBs). Paragraph 20 of AASB 112 has states: ” In some jurisdictions, the revaluation or other restatement of an asset to fair value affects taxable profit (tax loss) for the current period. As a result, the tax base of the asset is adjusted and no temporary difference arises. In other jurisdictions, the revaluation or restatement of an asset does not affect taxable profit in the period of the revaluation or restatement and, consequently, the tax base of the asset is not adjusted. Nevertheless, the future recovery of the carrying amount will result in a taxable flow of economic benefits to the entity and the amount that will be deductible for tax purposes will differ from the amount of those economic benefits. The difference between the carrying amount of a revalued asset and its tax base is a temporary difference and gives rise to a deferred tax liability or asset.” Discussions and Questions: You should answer questions listed in parts A and B in the report. Part A (10 marks) 1) “Revaluation of non-current asset doesn’t impact the recognition of future tax associated with that asset”. Evaluate this statement. (4 marks) 2) Discuss whether revaluation of non-current asset will lead to a deferred tax asset or a tax liability. (2 marks) 3) In your opinion, comment whether the deferred tax asset and deferred tax liability meet the definition and recognition for an asset and a liability according to the Conceptual Framework for Financial Reporting. (4 marks) 3 Part B (7 marks) 4) Provide and comment on an example (other than revaluation of non-current assets) that leads to a deferred tax asset in the chosen company. Evaluate its impact on financial position from the perspective of investors. (3 marks) 5) Provide and comment on an example (other than revaluation of non-current assets) that leads to a deferred tax liability in the chosen company. Evaluate its impact on financial position from the perspective of investors. (3 marks) 6) In your opinion, are there any deferred tax asset or deferred tax liability that are not recognised in the annual report of the chosen company? (2 marks) 2 marks will be awarded to effective communication and presentation of this report. Information regarding the report: • The report should include an executive summary, a body of contents covering points listed above, and a reference list. • You can refer to the paragraphs of AASBs to support your discussion presented in the report • AASB Conceptual Framework for financial reporting • AASB 112 Taxation • Each student should choose a company, which is listed on the Australian Stock Exchange (ASX). Find an annual report for the 2018/2019 financial year. Remember to use a complete annual report, not a concise financial report or a half-year financial report. • You must reserve your company by adding a post on ‘Discussion Board’ under ‘Reserve a company here’. Write the name and code of the chosen company in the subject of your post so everyone can see it, such as Medibank Private – MPL. • To ensure your choice of a company does not duplicate one already chosen by another student, they will be allocated on ‘a first come, first served’ basis. 4 • The reference list should include all materials supporting the report, such as an annual report and relevant AASBs. Please note: the textbook, study guide and Wikipedia cannot be used as references. • Sections extracted from the annual report or AASBs to support your report should be included in the Appendix. Also, provide specific references of the annual report and AASBs as in-text reference in your report, such as page 10 of annual report or AASB XXXXXXXXXXIf you choose to ignore this instruction, you will lose marks. • The references of this report should follow Harvard Referencing Style. Assessment criteria: The quality of the report will be assessed based on the following four areas: 1) Demonstrate and identify the accounting concepts applied. 2) Refer to paragraphs from related Australian Accounting Standard as guidelines to support your discussion. 3) Provide an example from the annual report to illustrate the implementation of an accounting concept(s) or principle(s) discussed. 4) Demonstrate effective communication, referencing, logical presentation and integrated evaluation. Special instructions for submission: • This is an individual assignment. • Word limit of this report should not be less than or exceed 10% of word limit XXXXXXXXXXwords) excluding executive summary, references and appendix. A loss of 10% of the total marks will apply if you do not follow this instruction. • You must use the electronic Assignment Cover Sheet provided, fill in details and then make this sheet the first page of your assignment. Do not send it as a separate document. • The file name of the report should include (in order) your surname, last name and your student number. For example: ‘ParkerSmith1235456'. 5 • Your assignments must be submitted as a word document. If you wish to submit in any other format please discuss this with your lecturer before the submission date. Please note: you are not allowed to submit the report in PDF file. • Unless otherwise indicated, all assignments are to be submitted online via the link for Turnitin assignment submission provided on the Blackboard site.