Corporate & Business Accounting Assignment

Corporate Accounting: Accounting for income tax

Assignment Specifications Purpose:

This assignment aims at developing a clear understanding of students on corporate accounting for income tax issues. Students will develop an understanding on different concepts used in accounting for income taxes. They will also develop an understanding on how different concepts of accounting for income tax are used by companies in the practical setting.

Assessment task: 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 firm’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, do the following tasks.

i Briefly explain the concepts of accounting profit, taxable profit, temporary difference, taxable temporary difference, deductible temporary difference, deferred tax assets and deferred tax liability.

ii Briefly explain the recognition criteria of deferred tax assets and deferred tax liability.

iii What is your firm’s tax expense in its latest financial statements?

iv Is this figure the same as the company tax rate times your firm’s accounting income? Explain why this is, or is not, the case for your firm highlighting the reasons for differences.

v Identify the deferred tax assets/liabilities that is reported in the balance sheet articulating the possible reasons why they have been recorded.

vi Is there any current tax assets or income tax payable recorded by your company? Why is the income tax payable not the same as income tax expense?

vii 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?

viii Briefly explain the concepts of temporary difference and permanent difference. Identify any permanent differences that your company may have.

ix What do you find interesting, confusing, surprising or difficult to understand about the treatment of tax in your firm’s financial statements? What new insights, if any, have you gained about how companies account for income tax as a result of examining your firm’s tax expense in its accounts?

 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.

Business Accounting Report

ASSESSMENT DESCRIPTION:

Assessment Task 1 (10%)

Research The aim of the group report is to test students’ ability to integrate skills learnt in Auditing and Assurance Services to analyze a real company from the auditor’s perspective and within the framework of auditing standards. The successful completion of this assignment requires extensive research on internal and external environments, operations, strategies and analysis of the annual report and other relevant information, including financial information. Students are expected to demonstrate their ability to critically evaluate various pieces of information and apply analytical skills to critically evaluate potential audit risks. An important aspect of the assignment will be to demonstrate your ability to present a written report in a professional manner. Details regarding the nature of the assignment and its assessment will be provided in week 2. Every group for this assignment is required to research for one case of corporate collapse and analyze how auditors had failed to fulfil their responsibility professionally. You have to be clever and pragmatic in selecting the case as some corporate collapses are not due to any audit failures. Your case must have available information for desk research. You are required to explore and collect information on the case to complete this assignment. Additional research is also required for this task.

It is expected that your report will cover the followings:

a. Executive summary (for both of the tasks)

b. Brief introduction of the selected corporate collapse.

c. Auditor of the company collapsed.

d. An analysis of how have the audit procedures contributed to the collapse.

e. Comment on the auditor’s independence and professional and ethical behavior within the case discussed.

f. Amendments that have taken place in the auditing standards and principles since then.

g. Your recommendations for any other improvements in the auditing profession based on this collapse. h. Conclusion

Assessment Task 2 (10%)

Scenario based question Andrew and Mike are two audit seniors working for Ford & Associates. Both started employment with the audit firm around the same time. They have mutual respect for each other; however, they have been highly competitive since they commenced work together. Andrew has recently married and he and his wife are paying off their mortgage. Mike is single with no commitments. They have both been seniors for almost two years and are looking for promotion to audit supervisor. They are both aware that there is only one supervisor position available. Andrew recently replaced Mike on the audit of Kent Ltd. The reason they were both given for the change was that another assignment had arisen with a long-time client of Mike’s. Once Andrew had replaced Mike on the Kent audit, he realized that the client had called the audit manager to say that they were not impressed with Mike, as he had missed a number of issues within the audit and was arriving at work late. The audit manager had not discussed these comments with either Andrew or Mike.

After going through the work that Mike had completed, Andrew realized that Mike had performed an excellent job, identifying a number of issues that he thought he might possibly have missed. Furthermore, Andrew suspects that Mike and the client had a personality conflict, and that the client has misled the audit manager. Andrew realizes that he can finish off the audit, resolve the issues and obtain a good review from this assignment, which would help him in the promotion stakes. He also knows that the audit manager is unlikely to bring the client’s unsupported allegations to Mike’s attention. Work through this scenario using the American Accounting Association decision-making model. [Adapted from Gay, Grant and Simnett, Roger (2015). Auditing & Assurance Services in Australia, McGraw-Hill, 7th edition] The best way to present your answer is following the steps of American Accounting Association decision-making model. The key steps in AAA model has been mentioned for your reference. a. Determine the facts. b. Define the ethical issues. c. Identify the major principles, rules and values. d. Specify the alternatives. e. Compare values and alternatives. f. Assess the consequences. g. Make your decision. ASSESSMENT SUBMISSION: This assessment is a group activity and students are required to work with their respective groups. No individual submission will be accepted. You will not receive any marks for this assignment if your group members collectively report against you for non-participation or non-cooperation. You have to nominate someone as your group leader to coordinate the assignment submission.

SAP S/4HANA allows an enterprise to create a consolidated view of all operational and financial data to offer flexible and easy reporting along with automation of processes. It also offers real-time analytics, simulations and forecasting with a great user experience. Benefits of SAP S/4HANA include but is not limited to ‘single source of truth, faster forecasting and planning, ‘on the fly capacities’, new reporting and analytic support, global regulatory and compliance abilities across all languages, currencies and industries, faster month closing, integrated with Fiori etc. Discuss these statements using case study examples (from literature searches) to demonstrate the benefits of SAP S/4HANA Enterprise Management. Your paper should include the following areas:

• A brief historical overview of SAP S/4HANA Enterprise Management focusing on the database aspect in particular

• The use of Fiori in comparison to t-codes

• What are the changes in S4(Simple Finance) that is different to SAP FICO ECC version? Discuss citing some examples.

• Discuss some issues faced by companies migrating to SAP S/4HANA and how they have overcome these issues. (Minimum 2 companies) Your task is to produce a 3000 – 4000-word research paper which discusses the issues relating to the above. The paper should demonstrate a depth and breadth of reading and should be appropriately referenced.

The paper should be referenced using the Harvard referencing standards and formatted according to the approved style guide. Your report must include the following: Introduction: Introduction to the topic, a statement of the purpose of the report and a brief description of the report’s structure.

Body: Discuss, compare and/or contrast different perspectives and present arguments supporting the purpose of the report. Use relevant business case studies to illustrate key points. All points must be presented with Harvard citations to high quality (journal/book) references that have a corresponding entry in your reference list.

Conclusion: A summary of the points you have made in the body of the report. These should match your stated purpose. Reference list: A complete Harvard format reference list. Review the Library style guide for citation and reference list examples http://libraryguides.vu.edu.au/harvard. Presentation: You should include a title page that has your name and the title of your report. Every page should feature a footer that includes your name, student ID, and page number.

 You should review: http://www.vu.edu.au/campuses-services/studentsupport/academic-support-development/academic-writing for some general help on academic writing, especially the sections on essays and referencing. Review the Library Harvard style guide for citation and reference list examples http://libraryguides.vu.edu.au/harvard. Submission: Your report must be submitted via the Research Assignment drop box link on VU Collaborate (this links to Turn tin) in MS Word format. Name your file using your team leader’s student ID in the form s3999999RR.docx and where the 3999999 is replaced by your leader’s student number. Your report document submitted to Turnitin must include only a title page, your report, and the reference list. Ensure that all student’s names and ID are listed on the document. If any names are missing, then that steam member will receive no marks for this assessment. Your submission on Turnitin will be marked electronically, so ensure it is complete. Note that if your lecturer asks you for a hard copy, you must submit the complete originality report version produced from Turnitin. Notes on referencing, paraphrasing, Turnitin and similarity You must include citations with matching references to demonstrate research relating to the discussion and analysis in the body of your report. You should aim to paraphrase sources where possible, writing the report in your own words and including citations and corresponding reference list entries to demonstrate research where appropriate. You should submit your report to Turnitin well in advance of the due date to ensure your similarity does not exceed twenty per cent (20%) (for a submission including your reference list). Note that: • Turnitin scores for your report higher than 20% will be heavily penalized or you can receive no marks for the assessment and could lead to a disciplinary hearing.

1. Illawarra Consultant (IC) provides consultancy services to two types of clients; individuals and corporate client. IC has two support departments: IT Support (IT) and Admin Support (Admin) department. In addition, IC has two operation departments to deal with its two distinct clients named Individual clients and corporate clients department. For the next quarter, the following cost record including budgeted cost of support department to be allocated to operating department is as follows:

Required (show your workings):