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MA 511 Financial Accounting & Reporting XXXXXXXXXXPage 6 of 6 Assessment Details and Submission Guidelines MA511 Financial Accounting & Reporting School Business Course Name Master of Professional...

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MA 511 Financial Accounting & Reporting XXXXXXXXXXPage 6 of 6
    Assessment Details and Submission Guidelines
MA511 Financial Accounting & Reporting
    School
    Business
    Course Name
    Master of Professional Accounting (MPA)
    Unit Code
    MA511
    Unit Title
    Financial Accounting & Reporting
    Trimeste
    Trimester 1, 2020
    Assessment Autho
    
Dr Jayasinghe Hewa Dulige
    Assessment Type
    Report
    Assessment Title
    Assessment Task 3 – Individual
    Unit Learning Outcomes Addressed:
    c. Apply IFRSs including the framework in the preparation of general purpose financial statements.
e. Design and develop an entity’s accounting system to maintain financial information and facilitate the preparation of general purpose financial statements.
    Weight
    15%
    Total Marks
    100
    Word limit
     XXXXXXXXXX
    Release Date
    Week Three
    Due Date
    Week 6
    Submission Guidelines
    · This assignment should be completed individually.
· All work must be submitted on Moodle by the due date along with a completed Assignment Cover Page.
· The assignment must be in MS Word format, 1.5 spacing, 11-pt Cali
i (Body) font and 2 cm margins on all four sides of your page with appropriate section headings.
· Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using APA 6th edition for the School of Business.
    Extension
    If an extension of time to submit work is required, an Application for Special Consideration and supporting documentation must be submitted directly to the School's Administration Officer via your MIT AMS login
[https:
online.mit.edu.au/ams/default.aspx?ReturnUrl=%2fams%2f]. You must submit this application no later than three working days after the due date of the specific piece of assessment or the examination for which you are seeking Special Consideration. Further information is available at:
http:
www.mit.edu.au/about-mit/institute-publications/policies-procedures-and-guidelines/specialconsiderationdeferment
    Academic Misconduct
    Academic Misconduct is a serious offence. Depending on the seriousness of the case, penalties can vary from a written warning or zero marks to exclusion from the course or rescinding the degree. Students should make themselves familiar with the full policy and procedure available at: http:
www.mit.edu.au/about-mit/institute-publications/policies-procedures-and-guidelines/Plagiarism-Academic-Misconduct-Policy-Procedure. For further information, please refer to the Academic Integrity Section in your Unit Description.
Assessment Cover Sheet
    Student ID Numbe
s:
    Student Last name/s:
    Student First name/s:
    
    
    
    
    
    
    
    
    
    
    
    
    Course:
    School:
    Unit code:
    Unit title:
    Due date:
    Date submitted:
    Campus:
    Lecturer’s Name:
    Tutor:
    Student Declaration
I/We declare and certify that:
1. the work contained in this assessment is my/our own work/group work, except where acknowledgement of sources is made;
1. this assessment has not been submitted previously for academic credit in this or any other course;
1. I/we have read MIT’s Plagiarism and Academic Misconduct Policy and Procedure, and I/we understand the consequences of engaging in plagiarism, collusion and contract cheating;
1. a copy of the original assignment is retained by me/us and that I/we may be required to submit the original assignment to the Lecturer and/or Unit Co-ordinator upon request;
I/we have not plagiarised the work of others or participated in unauthorised collaboration or contract cheating when preparing this assessment.
    MIT ID
    Signature
    Date
    
    
    
    
    
    
    
    
    
    
    
    
Assessment Task Description
Whale Caravans Ltd (WCL) is a reporting entity, that is required to prepare General Purpose Financial Statements (GPFS), manufactures high quality caravans and prefa
icated sheds built to suit the needs of Australian consumers. With 50 years of manufacturing reputation, WCL maintains quality, innovation and champions in customisation. WCL is a profitable company and had been continuously paying company tax over two decades.
Unfortunately, in the cu
ent year due to bush fire, Company’s main factory in Sydney’s west was destroyed. The company has recorded a $5.2 million accounting loss in the cu
ent period as a result of bush fire. The Board of Directors of Whale Caravans Ltd are debating whether it can raise a defe
ed tax asset in relation to this loss in the financial statements for the cu
ent period.
Loftus et al XXXXXXXXXXand Leo et al XXXXXXXXXXpostulate that in Australia, tax losses can be ca
ied forward and charged against future taxable profits.
AASB 112 states that;
“When a tax loss is used to recover cu
ent tax of a previous period, an entity recognises the benefit as an asset in the period in which the tax loss occurs because it is probable that the benefit will flow to the entity and the benefit can be reliably measured” (AASB112, pp 9).
Required
Prepare a report to the chairman of WCL discussing whether the tax loss in the cu
ent year be recognised as a defe
ed tax asset in accordance with AASB 112 accounting for company income taxes.
You are also required to review one of the ASX listed companies’ annual report’s financial statements and notes, and provide examples as to how they recognise defe
ed tax assets in their financial statements.
In your report:
1. What is tax loss and how is it accounted for?
2. Discuss how and when a defe
ed tax asset (DTA) or defe
ed tax liability (DTL) must be recognised. Discuss any differences between the criteria for DTA and DTL.
3. Evaluate the factors that should be considered in determining whether defe
ed tax assets relating to tax losses are to be recognised.
4. Analyse and report how the selected/allocated ASX listed company recognised and disclosed DTA, DTL and Tax losses if any.
5. Advise the Chairman of WCL how income tax losses can provide future tax benefits.
Leo, K., Knapp, J., McGowan, S. and Sweeting, J XXXXXXXXXXCompany Accounting (11th ed.). John Wiley Milton Queensland.
Loftus, J., Leo, K., Daniliuc, S., Boys, N., Luke, B., Ang, H. and Byrnes, K XXXXXXXXXXFinancial Reporting (3nd ed.). John Wiley, Milton Queensland.
Australian Accounting Standard Board XXXXXXXXXXIncome taxes, AASB, Retrieved from:
https:
www.aasb.gov.au/admin/file/content105/c9/AASB112_08-15_COMPfeb2018_01-19.pdf
This assignment must be written/structured in the form of a ‘business report’. That is, it must have a/an;
(a) Executive summary (between 100 to 150 words),
(b) Introduction that;
Succinctly summarizes this assignment’s topic and its key issues, controversies, etc. (no more than 200 words), and
(c) Body that addresses all the requirements – see above 1-5 (no more 1000 words),
(d) Conclusion that sums up the mains issues of this assignment (no more than 200 words), and
(e) Reference list containing all cited works.
(f) Proper English Grammar, appearance, format, etc.
At least 2 recognized journal article should be cited.
Marking criteria:
MA511 / Financial Accounting & Reporting /Semester T1, 2021, Individual Assignment
    Name:
    
    Student Number
    
    Assessment Criteria
    Total Marks
    Marks awarded
    Criterion 1 - Structure and Clarity of the Report/Assignment
· introductory paragraph
· logical flow of clarity and structure of ideas and arguments
· appropriate use of paragraph and headings to explain and discuss ideas
· appropriate concluding paragraph
    
3
2
2
3
    
    Total marks for criterion 1
    10
    
    Criterion 2 - Body/contents
1. What is tax loss and how is it accounted for?
2. Discuss how and when a defe
ed tax asset (DTA) or defe
ed tax liability (DTL) must be recognised. Discuss any differences between the criteria for DTA and DTL.
3. Evaluate the factors that should be considered in determining whether defe
ed tax assets relating to tax losses are to be recognised.
4. Analyse and report how the ASX listed company recognised and disclosed DTA, DTL and Tax losses if any.
5. Advice the Chairman of (WCL) how income tax losses can provide future tax benefits.
    
10
10

XXXXXXXXXX
XXXXXXXXXX
15
    
    Total marks for criterion 2
    60
    
    Criterion 3 - Research and Analysis
· quality of research undertaken
· accuracy and depth of analysis
· appropriate use of in-text and end text referencing
· quality of information sources
· appendices
    
7
7
4
4
3
    
    Total marks for criterion 3
    25
    
    Criterion 4 - Presentation
· layout
· formatting
· spelling/gramma
· proof read
· professional format
    
1
1
1
1
1
    
    Total marks for criterion 4
    5
    
    Total marks
    100
    
    Total marks
    20
    
Other Comments
Using Technology for Assessment
    Rationale
    Activities
    Technological tools selected
    
· Industry knowledge & skills
· reflection on learning
· feedback on performance
· practice of critical thinking
    
· check for plagiarism
· problem-based learning
    · online forum on Moodle
· Turnitin
Marking guide for Individual assignment – BA214 -T1 2021
    Criteria/ Grades
    Fail (N) [Unsatisfactory]
50%
    Pass (P) [Satisfactory]
50%-59%
    Credit (C) [Good]
60%-69%
    Distinction (D) [Very Good]
70%-79%
    High Distinction (HD) [Excellent]
80-100%
    Evaluation of Information

    Information is used with some interpretation/evaluation, but not enough to develop a coherent analysis or synthesis. Analyses and evaluates information to complete a limited range of activities. Analysis and evaluation reflect little expert judgment, intellectual independence, rigour and adaptability.
    Selects relevant information to address the issues in the case. Identifies logical flaws in the information provided in the case. Analysis and evaluation reflect acceptable level of intellectual independence, rigour, authoritative judgment and adaptability.
    Selects relevant information to address the issues in the case. Identifies and rectifies logical flaws in the information provided in the case. Information is often selected with interpretation/evaluation to develop a comprehensive critical analysis or synthesis. Evaluates available information, identifies missing information. Analysis and evaluation reflect good intellectual independence, rigour, authoritative judgment and adaptability.
    
Systematically selects relevant information to address the issues in the case. Identifies and rectifies logical flaws in the information provided in the case. Information is often selected with a high level of interpretation/evaluation to develop a comprehensive critical analysis or synthesis. Thoroughly evaluates available information, identifies missing information and makes reasonable assumptions to fill gaps in evidence. Analysis and evaluation reflect a high level of intellectual independence, rigour, authoritative judgment and adaptability.
    Systematically selects relevant information to address the issues in the case. Identifies and rectifies logical flaws in the information provided in the case. Information is selected with a high level of interpretation/evaluation to develop a comprehensive critical analysis and/or synthesis. Very thoroughly evaluates available information, identifies missing information and makes reasonable assumptions to fill gaps in information needed to address issues in the case. Analysis and evaluation reflect a consistently very high level of intellectual independence, rigour, authoritative judgment and adaptability.
    Use of Existing Knowledge
Answered 1 days After Apr 23, 2021

Solution

Sumit answered on Apr 24 2021
145 Votes
Executive Summary:
Tax Loss is the loss incu
ed by an entity in an accounting period computed in accordance with the tax rules established by the taxation authority in Australia. Defe
ed Tax Assets are the amount of Income taxes recoverable in the future periods. Defe
ed Tax Liabilities are amount of Income taxes payable in the future period due to temporary differences. The tax assets arise in the balance sheet of the company if the company has done overpayment of tax in the previous year which can be used to deduct taxes for the cu
ent year. The tax liabilities arise in the balance sheet of the company if the company has done underpayment of tax in the previous year which has to be paid in the cu
ent year. The Commonwealth Bank of Australia (CBA) has both Defe
ed Tax Assets and Defe
ed Tax Liabilities in their balance sheet. The amount of defe
ed Tax assets for the group is $2060 Million and for the bank is $1968 Million. The amount of Defe
ed Tax Liability for the group is $30 Million and for the bank is $30 Million.
Introduction:
In this report we have discussed whether the tax loss in the cu
ent year can be recognized as a defe
ed tax asset in the statement of financial reports in accordance with the Australian Accounting Standard Board (AASB) 112 “Accounting for Company Income Taxes”. In the first part of the body of the report we have discussed what is a tax loss and how is it accounted for. In the Second part, we have discussed how and when should a Defe
ed Tax Asset or Defe
ed Tax Liability should be recognized and the difference between them. In the third part, we have discussed the factors that should be considered in determining whether defe
ed tax assets relating to tax losses should be recognized. In the fourth part, we have analysed the financial statements of the Commonwealth Bank of Australia (CBA) to determine how the company has recognized and disclosed the DTA and DTL in their financial statements. In the fifth part, we have advised the chairman of WCL how income tax losses can provide future tax benefits.
Body of the Report:
(i). Tax Loss is the loss incu
ed by an entity in an accounting period computed in accordance with the tax rules established by the taxation authority in Australia. Once the total tax amount is computed the it is determined whether the entity needs to pay more tax or it has already paid extra tax which can be adjusted in the next year. Once it is determined that an entity has a tax loss in the accounting period and it is ca
ied forward in the next year so that the tax amount for the next year can be reduced. Since the loss can be used to reduce the future...
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