Question 1: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with a suitable example.
Question 1: Why do
Question 2: Will the existence of unused tax losses always lead to the recognition of deferred tax assets? Explain your answer with suitable example.
Question 3: Do the liabilities and assets that are generated by using the '
Question 4: Under what conditions can deferred tax assets 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:
- Identify the income tax expense (income) shown in the income statement. On what basis has this amount been calculated?
- Deferred tax assets/liabilities shown in the balance sheet
- A detailed explanation of what has been disclosed for Income tax in the Notes associated with the financial statement.
- Under what basis/assumptions have deferred tax assets and deferred tax liabilities 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.
(You can select the company at your discretion. The company must be listed in the ASX)
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