HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION

HI5020 Corporate Accounting Individual Assignment T1 2021

Assessment Details and Submission Guidelines
Trimester	T1 2021
Unit Code	HI5020
Unit Title	Corporate Accounting
Assessment Type	Individual Assignment
Assessment Title	Accounting for Corporate Income Tax-Theory and Applications
Purpose of the assessment (with ULO Mapping)	This assignment aims at developing an understanding of students on different concepts of Accounting for Income tax and the application of those concepts in the practical financial setting. In addition to answering theoretical questions on different concepts on accounting for income tax, students will need to analyse the tax related disclosures made by an ASX listed company in its financial statements and the associated notes to the financial statements. (ULO 1, 3, 4, 5).
Weight	35 % of the total assessments (35 marks)
Total Marks	35 % in written report
Word limit	3000 words ±500 words
Due Date	Assignment submission: Final Submission of individual Assignment: Wednesday, Week 10, 11:59 pm 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 and Referencing	• 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. The following guidelines apply: 1. Reference sources in assignments are limited to sources which provide full text access to the source’s content for lecturers and markers. 2. The Reference list should be located on a separate page at the end of the essay and titled: References. 3. It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname. In addition, it MUST include a hyperlink to the full text of the cited reference source. For example; P Hawking, B McCarthy, A Stein (2004), Second Wave ERP Education, Journal of Information Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf 4. All assignments will require additional in-text reference details which will consist of the surname of the author/authors or name of the authoring body, year of publication, page number of content, paragraph where the content can be found. For example; “The company decided to implement a enterprise wide data warehouse business intelligence strategies (Hawking et al, 2004, p3(4)).”

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HI5020 Corporate Accounting Individual Assignment T1 2021

Non Adherence to Referencing Guidelines Where students do not follow the above guidelines: 1. Students who submit assignments which do not comply with the guidelines will be asked to resubmit their assignments. 2. Late penalties will apply, as per the Student Handbook each day, after the student/s have been notified of the resubmission requirements. 3. Students who comply with guidelines and the citations are “fake” will be reported for academic misconduct.

Assignment Specifications
Purpose:
This assignment aims at developing an understanding of students on different concepts of Accounting
for Income tax and the application of those concepts in the practical financial setting. In addition to
answering theoretical questions on different concepts on accounting for income tax, students will
need to analyse the tax related disclosures made by an ASX listed company in its financial statements
and the associated notes to the financial statements.
Assessment task:
Please answer the following questions relating to Accounting for Corporate Income Tax.
Question 1: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with
suitable example.
Question 2: Will the existence of unused tax losses always lead to the recognition of a deferred tax
assets? Explain your answer with suitable example.
Question 3: Do the liabilities and assets that are generated by using the ‘balance sheet method’ of
accounting for tax appear to be consistent with the definition and recognition criteria of assets and
liabilities promulgated within the Conceptual Framework?
Question 4: Under what condition deferred tax assets can be offset against deferred tax liabilities?
Question 5: Critically examine the disclosures made by an Australian Securities Exchange (ASX) listed
company in its latest financial statements and associated notes regarding income tax issues. While
every company will have unique tax matters and position, your discussion should highlight the
following:

(i)	Identify the income tax expense (income) shown in the income statement. On what basis this amount has been calculated?

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HI5020 Corporate Accounting Individual Assignment T1 2021

(ii) (iii)	Deferred tax assets/liabilities shown in the balance sheet A detailed explanation of what has been disclosed for Income tax in the Note associated with the financial statement. Under what basis/assumptions deferred tax assets deferred tax liabilities have been recognised? What portion of the deferred tax assets or deferred tax liabilities have originated in the current year, and what portion relate to prior years? Summarise the accounting policies and approaches used by the company in its accounting for Income Tax.
(iv)
(v)
(vi)

(You can select the company at your discretion. The company must be listed in the ASX)
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
…..
Marking criteria

Marking criteria	Marks
Abstract	1
List of content & overall presentation of the assignment	1
Introduction	1
1. Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with suitable example.	3
1. Will the existence of unused tax losses always lead to the recognition of a deferred tax assets? Explain your answer with suitable example.	3
2. Do the liabilities and assets that are generated by using the ‘balance sheet method’ of accounting for tax appear to be consistent with the definition and recognition criteria of assets and liabilities promulgated within the Conceptual Framework of Accounting?	4
3. Under what condition deferred tax assets can be offset against deferred tax liabilities?	3
4. Critically examine the disclosures made by an Australian Securities Exchange (ASX) listed company in its latest financial statements and associated notes regarding income tax issues. While every company will have unique tax matters and position, your discussion should highlight the following:
(i) Identify the income tax expense (income) shown in the income statement. On what basis this amount has been calculated?	2
(ii) Deferred tax assets/liabilities shown in the balance sheet	2
(iii) A detailed explanation of what has been disclosed for Income tax in the Note associated with the financial statement.	5

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HI5020 Corporate Accounting Individual Assignment T1 2021

(iv) Under what basis/assumptions deferred tax assets and deferred tax liabilities have been recognised?	3
(v) What portion of the deferred tax assets or deferred tax liabilities have originated in the current year, and what portion relate to prior years?	2
(vi) Summarise the accounting policies and approaches used by the company in its accounting for Income Tax.	3
Conclusion	1
TOTAL Weight	35

Academic Integrity
Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral
to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks
need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity
breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please
consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these
resources can also be found through the Study Sills link on Blackboard.
Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of
marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of
course enrolment.
Table 1: Six categories of Academic Integrity breaches

Plagiarism	Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.
Collusion	Working with one or more other individuals to complete an assignment, in a way that is not authorised.
Copying	Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
Impersonation	Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheating	Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication and falsification	Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.

Source: INQAAHE, 2020
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HI5020 Corporate Accounting Individual Assignment T1 2021
Marking Rubric

Excellent	Very Good	Good	Satisfactory	Unsatisfactory
Abstract (1)	Apply judgement
List of content & overall presentation of the assignment (1)	Apply judgement
Introduction (1)	Apply judgement
1. Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with suitable example. (3)	The reason for the deferred tax assets and liabilities have been explained with suitable example. The concepts of temporary difference, taxable temporary difference, deductible temporary differences have been linked to DTA and DTL.	The reason for the deferred tax assets and liabilities have been explained with suitable example. The concepts of temporary difference, taxable temporary difference, deductible temporary differences have been linked to DTA and DTL. Minor confusions or errors.	The reason for the deferred tax assets and liabilities have been explained with suitable example. The concepts of temporary difference, taxable temporary difference, deductible temporary differences have been linked to DTA and DTL. Major confusions or errors.	The reason for the deferred tax assets and liabilities have been explained. Example not clear. The concepts of temporary difference, taxable temporary difference, deductible temporary differences have not been linked to DTA and DTL. Major confusions or errors.	The reason for the deferred tax assets and liabilities have been explained. Example not clear. The concepts of temporary differences, taxable temporary differences, deductible temporary differences have not been linked to DTA and DTL. Major confusions or errors.
2. Will the existence of unused tax losses always lead to the recognition of a deferred tax assets? Explain your answer with suitable example. (3)	An excellent explanation of under what condition unused tax losses can create deferred tax assets. Example provided is very clear.	Has provided a clear explanation of under what condition unused tax losses can create deferred tax assets. Examples have been provided. Minor confusion/errors	Has provided an explanation of under what condition unused tax losses can create deferred tax assets. Examples have been provided. Major confusions/error s.	Has attempted to provide an explanation of under what condition unused tax losses can create deferred tax assets. No example has been provided. Major confusions/error s.	Has incorrectly attempted to provide an explanation of under what condition unused tax losses can create deferred tax assets. No example has been provided. major confusions/error s.
3. Do the liabilities and assets that are generated	Has shown an excellent understanding of the balance sheet method of	Has shown a very good understanding of the balance sheet method of	Has good/above basic understanding of the balance sheet method of	Has shown only basic understanding of the balance sheet method of	Has shown very poor understanding of the balance sheet method of

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HI5020 Corporate Accounting Individual Assignment T1 2021

by using the ‘balance sheet method’ of accounting for tax appear to be consistent with the definition and recognition criteria of assets and liabilities promulgate d within the Conceptual Framework of Accounting? (4)	accounting for tax in relation to assets and liability recognition as well as the assets and liabilities defined in the Conceptual Framework of accounting.	accounting for tax in relation to assets and liability recognition as well as the assets and liabilities defined in the Conceptual Framework of accounting. Minor error remains.	accounting for tax in relation to assets and liability recognition as well as the assets and liabilities defined in the Conceptual Framework of accounting. Major error remains.	accounting for tax in relation to assets and liability recognition as well as the assets and liabilities defined in the Conceptual Framework of accounting. Major error remains.	accounting for tax in relation to assets and liability recognition as well as the assets and liabilities defined in the Conceptual Framework of accounting. Major error remains.
4. Under what condition deferred tax assets can be offset against deferred tax liabilities? (3)	An excellent explanation of the condition for off-setting the deferred tax assets with deferred tax liability has been provided with specific reference to section of AASB.	A very good explanation of the condition for off-setting the deferred tax assets with deferred tax liability has been provided without specific reference to section of AASB.	A good explanation of the condition for off-setting the deferred tax assets with deferred tax liability has been provided. Minor confusions remain.	A very basic explanation of the condition for off-setting the deferred tax assets with deferred tax liability has been provided. Major confusions remain.	A very poor explanation of the condition for off-setting the deferred tax assets with deferred tax liability has been provided. Major confusions remain.
5. Critically examine the disclosures made by an Australian Securities Exchange (ASX) listed company in its latest financial statements and associated notes regarding

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HI5020 Corporate Accounting Individual Assignment T1 2021

income tax issues. While every company will have unique tax matters and position, your discussion should highlight the following:
(i) Identify the income tax expense (income) shown in the income statement. On what basis this amount has been calculated? (2)	Has correctly identified the income tax expense or income tax credit for net loss. Has provided an excellent explanation on the basis for calculation of the income tax expense/credit.	Has correctly identified the income tax expense or income tax credit for net loss. Has provided a good explanation on the basis for calculation of the income tax expense/credit.	Has correctly identified the income tax expense or income tax credit for net loss. Has provided a basic explanation on the basis for calculation of the income tax expense/credit.	Has correctly identified the income tax expense or income tax credit for net loss. Has not provided an explanation on the basis for calculation of the income tax expense/credit.	Has not correctly identified the income tax expense or income tax credit for net loss. Has not provided an explanation on the basis for calculation of the income tax expense/credit.
(ii) Identify the deferred tax assets/liabilities shown in the balance sheet. Identify their sources based on the notes disclosure (2)	Has identified the deferred tax assets/liabilitie s shown in the balance sheet. Has identified their sources based on the notes disclosure.	Has identified the deferred tax assets/liabilitie s shown in the balance sheet. Has identified their sources based on the notes disclosure. Minor errors remain.	Has identified the deferred tax assets/liabilitie s shown in the balance sheet. Has identified their sources based on the notes disclosure. Major errors remain.	Has identified the deferred tax assets/liabilitie s shown in the balance sheet. Has not been able to identify their sources based on the notes disclosure.	Has not been identified the deferred tax assets/liabilitie s shown in the balance sheet. Has not been able to identify their sources based on the notes disclosure.
(iii) A detailed explanation of what has been disclosed for Income tax in the Note associated with the financial statement. (5)	An excellent explanation of different items and issues disclosed for Income tax in the Note associated with the Financial Statements has been provided.	A very good explanation of different items and issues disclosed for Income tax in the Note associated with the Financial Statements has been provided.	A good explanation of different items and issues disclosed for Income tax in the Note associated with the Financial Statements has been provided.	A very basic explanation of different items and issues disclosed for Income tax in the Note associated with the Financial Statements has been provided.	A very poor explanation of different items and issues disclosed for Income tax in the Note associated with the Financial Statements has been provided.

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HI5020 Corporate Accounting Individual Assignment T1 2021

Minor confusions or inconsistency	Major confusions or inconsistency	Major confusions or inconsistency
(iv)Under what basis/assumptio ns deferred tax assets and deferred tax liabilities have been recognised? (3)	Has shown an excellent understanding of the basis and assumptions used by the company in recognising the deferred tax assets and deferred tax liabilities.	Has shown a very good level of understanding of the basis and assumptions used by the company in recognising the deferred tax assets and deferred tax liabilities.	Has shown a good level of understanding of the basis and assumptions used by the company in recognising the deferred tax assets and deferred tax liabilities. Minor confusions	Has shown a basic level of understanding of the basis and assumptions used by the company in recognising the deferred tax assets and deferred tax liabilities. Major confusions and errors	Has shown a very poor level of understanding of the basis and assumptions used by the company in recognising the deferred tax assets and deferred tax liabilities. Major confusions and errors
(v)What portion of the deferred tax assets or deferred tax liabilities have originated in the current year, and what portion relate to prior years? (2)	Has clearly identified the deferred tax assets and deferred tax liabilities arising in the current year, and in the previous years. Has shown excellent understanding on how the balances of DTA and DTL have changed during the year.	Has clearly identified the deferred tax assets and deferred tax liabilities arising in the current year, and in the previous years. Has shown good level of understanding on how the balances of DTA and DTL have changed during the year.	Has clearly identified the deferred tax assets and deferred tax liabilities arising in the current year, and in the previous years. Has shown basic level of understanding on how the balances of DTA and DTL have changed during the year.	Has been able to identify deferred tax assets and deferred tax liabilities arising in the current year, and in the previous years. Does not demonstrate any understanding on how the balances of DTA and DTL have changed during the year.	Has not been able to identify deferred tax assets and deferred tax liabilities arising in the current year, and in the previous years. Does not demonstrate any understanding on how the balances of DTA and DTL have changed during the year.
(vi)Summarise the accounting policies and approaches used by the company in its accounting for Income Tax. (4)	Has provided an excellent summary of accounting policies and approaches disclosed by the company in the Notes, for its accounting for Income Tax	Has provided a very good summary of accounting policies and approaches disclosed by the company in the Notes, for its accounting for Income Tax.	Has provided a good summary of accounting policies and approaches disclosed by the company in the Notes, for its accounting for Income Tax. Minor confusions or errors	Has provided a very basic summary of accounting policies and approaches disclosed by the company in the Notes, for its accounting for Income Tax. Major confusions or errors	Has provided a very poor or irrelevant summary of accounting policies and approaches disclosed by the company in the Notes, for its accounting for Income Tax. Major confusions or errors
Conclusions (1)	Apply judgement
Total 35

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HI5020 Corporate Accounting Individual Assignment T1 2021