corporate accounting
ACC3100 Corporate Accounting
Assessment 2 – Trimester 2, 2021
Assessment Type: Individual
Weighting: 30%
Learning Outcomes Assessed: ULO 1, 2 and 5
Word Limit: 3,000 words
Due Date: 15 October 2021 (Friday) 11:59 pm (AEDT)
All submissions must be submitted with a signed Ozford Institute of Higher Education Cover
Sheet via Moodle. Late submissions will attract a penalty of 5% of the assessment weighting
for each calendar day late unless an extension is granted by the lecturer.
Requirements
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 selected company’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, complete the following tasks in
a written report:
a) Briefly explain the concepts of temporary difference, taxable temporary difference,
deductible temporary difference, deferred tax assets and deferred tax liability. (5 marks)
b) What is your selected company’s tax expense in its latest financial statements? (2 marks)
c) Is this figure the same as the company tax rate times your selected company’s accounting
profit? Explain why this is, or is not, the case and highlights the reasons for differences. (4
marks)
d) Identify the deferred tax assets/liabilities that is reported in the balance sheet articulating
the possible reasons why they have been recorded. (4 marks)
e) Is there any current tax assets or income tax payable recorded by your selected company?
Why is the income tax payable not the same as income tax expense? (4 marks)
f) 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? (4 marks)
g) What do you find interesting, confusing, surprising or difficult to understand about the
treatment of tax in your selected company’s financial statements? What new insights, if
any, have you gained about how companies account for income tax as a result of examining
your selected company’s tax expense in its accounts? (4 marks)
Report Structure
The report should consist of the following components:
1) Introduction
2) Main body – The main body should address the above requirements.
3) Conclusion
4) Reference List – All references cited in the main body must be included in the reference
list. References from Wikipedia should not be used.
Marking Rubric
Criteria High Distinction Distinction Credit Pass Fail
80-100% 70-79% 60-69% 50-59% 0-49%
Briefly explain the concepts
of temporary difference,
taxable temporary
difference, deductible
temporary difference,
deferred tax assets and
deferred tax liability
/ 5
Excellent explanation of
all five concepts
Very good explanation of
all five concepts
Proper explanation of all
five concepts and good
explanation of some of
them.
Proper explanation of
most of the five
concepts.
Unable to provide
proper explanation of
the five concepts.
Selected company’s tax
expense in its latest financial
statements
/ 2
Proper identification of
tax expenses for both
years.
Proper identification of tax
expenses for both years.
Proper identification of
tax expenses for both
years.
Proper identification of
tax expense for one year.
Unable to identify the
tax expenses for both
years.
Is this figure the same as the
company tax rate times your
selected company’s
accounting profit? Explain
why this is, or is not, the case
and highlights the reasons
for differences
/ 4
Proper comparison of tax
expenses and company
tax rate times accounting
profits. Comprehensive
discussion of the reason
for the similarity or
difference between the
two.
Proper comparison of tax
expenses and company tax
rate times accounting
profits. Very good
discussion of the reason
for the similarity or
difference between the
two.
Proper comparison of tax
expenses and company
tax rate times accounting
profits. Good discussion
of the reason for the
similarity or difference
between the two.
Proper comparison of tax
expenses and company
tax rate times accounting
profits. Reasonable
discussion of the reason
for the similarity or
difference between the
two.
Unable to provide a
proper comparison of
tax expenses and
company tax rate
times accounting
profits.
Identify the deferred tax
assets/liabilities that is
reported in the balance sheet
articulating the possible
reasons why they have been
recorded
/ 4
Proper identification of
reported deferred tax
assets/liabilities and
comprehensive
discussion of why they
have been reported.
Proper identification of
reported deferred tax
assets/liabilities and very
good discussion of why
they have been reported.
Proper identification of
reported deferred tax
assets/liabilities and
good discussion of why
they have been reported.
Proper identification of
reported deferred tax
assets/liabilities and
reasonable discussion of
why they have been
reported.
Unable to identify the
deferred tax
assets/deferred tax
liabilities.
Is there any current tax
assets or income tax payable
recorded by your selected
company? Why is the
Proper identification of
current tax assets/income
tax payable and
comprehensive
discussion of the reason
Proper identification of
current tax assets/income
tax payable and very good
discussion of the reason of
the difference between
Proper identification of
current tax assets/income
tax payable and good
discussion of the reason
of the difference between
Proper identification of
current tax assets/income
tax payable and
reasonable discussion of
the reason of the
Unable to identify the
current tax
assets/income tax
payable.
income tax payable not the
same as income tax expense?
/ 4
of the difference between
income tax payable and
income tax expense.
income tax payable and
income tax expense.
income tax payable and
income tax expense.
difference between
income tax payable and
income tax expense.
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?
/ 4
Comprehensive
discussion of difference
between income tax
expense and income tax
paid.
Very good discussion of
difference between income
tax expense and income
tax paid.
Good discussion of
difference between
income tax expense and
income tax paid.
Reasonable discussion of
difference between
income tax expense and
income tax paid.
Unable to provide a
proper discussion of
difference between
income tax expense
and income tax paid.
What do you find
interesting, confusing,
surprising or difficult to
understand about the
treatment of tax in your
selected company’s financial
statements? What new
insights, if any, have you
gained about how companies
account for income tax as a
result of examining your
selected company’s tax
expense in its accounts?
/ 4
Excellent discussion of
personal view on
treatment of tax and
insights from the
examination of the
company’s accounts.
Very good discussion of
personal view on treatment
of tax and insights from
the examination of the
company’s accounts.
Good discussion of
personal view on
treatment of tax and
insights from the
examination of the
company’s accounts.
Reasonable discussion of
personal view on
treatment of tax and
insights from the
examination of the
company’s accounts.
Unable to provide a
proper discussion of
personal view on
treatment of tax and
insights from the
examination of the
company’s accounts.
Structure and presentation
/ 3
Comprehensive
introduction, body and
conclusion; the structure
of the main body is
complete; all references
are properly cited and
provided in the reference
list.
Very good introduction,
body and conclusion; the
structure of the main body
is complete; almost all
references are properly
cited and provided in the
reference list.
Good introduction, body
and conclusion; the
structure of the main
body is almost complete;
most references are
properly cited and
provided in the reference
list.
Basic introduction, body
and conclusion; structure
of the main body
somewhat complete; the
majority of references
are properly cited and
provided in the reference
list.
Poor introduction,
body and conclusion;
structure of the main
body incomplete;
most references are
not properly cited and
provided in the
reference list.
Total Marks
/ 30
Final Comments: