Microsoft Word - Report 2020 session 1
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ACC00713 Report 2020 S1
Due date: 5pm Friday 29 May 2020
The due date is extended for 7 days. The new due date is 5pm
Friday 29 May 2020. You don’t need to apply for an extension
if you submit the report before the new due date.
Weight: 20 marks
Word limit: XXXXXXXXXXwords
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Instructions for the report
This task requires you to prepare a report to evaluate and comment on recognition and
measurement regarding defe
ed tax assets and defe
ed tax liabilities. You need to choose a
company listed on the Australian Stock Exchange (ASX) and provide your evaluation regarding
elevant presentation of defe
ed tax assets and liabilities. Your comments or evaluation can
efer 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 cu
ent 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 ca
ying 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
enefits. The difference between the ca
ying amount of a revalued asset and its tax base is a
temporary difference and gives rise to a defe
ed 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-cu
ent asset doesn’t impact the recognition of future tax
associated with that asset”. Evaluate this statement. (4 marks)
2) Discuss whether revaluation of non-cu
ent asset will lead to a defe
ed tax asset or a
tax liability. (2 marks)
3) In your opinion, comment whether the defe
ed tax asset and defe
ed tax liability
meet the definition and recognition for an asset and a liability according to the
Conceptual Framework for Financial Reporting. (4 marks)
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Part B (7 marks)
4) Provide and comment on an example (other than revaluation of non-cu
ent assets)
that leads to a defe
ed 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-cu
ent assets)
that leads to a defe
ed 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 defe
ed tax asset or defe
ed tax liability that are not
ecognised 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
eport
• 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.
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• The reference list should include all materials supporting the report, such as an annual
eport and relevant AASBs. Please note: the textbook, study guide and Wikipedia cannot
e 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 XXXXXXXXXX
words) 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'.
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• 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.