...1. Introduction Accounting treatment for income taxes for for-profit entities is subject to Australian Accounting Standard Board (AASB) 112 Income Taxes. In accounting for income tax, complying with tax-effect method involves the occurrence of tax consequences due to different treatments are applied for transactions and other events happened inside an entity for accounting and taxation purposes, namely current tax consequences and future tax consequences. The purpose of this report was to identify and analyze the reasoning behind the responsibility of exploration and development costs (E&D) for the creation of a deferred tax liability (DTL) and its treatments for both accounting and taxation purposes. Moreover, the analysis was performed with reference to case study of Gravatt Ltd., a company operating in the mining industry where its directors arguing on the disadvantages of applying tax-effect accounting standards of AASB 112 and rather not to comply with one. This report was not discussing only on the rationale behind deferred tax liabilities according to AASB Framework for the Preparation and Presentation of Financial Statements and AASB 112 Income Taxes, but also the comparison of the impact on information utility captured by the users of financial statements of Gravatt in case of recognizing and unrecognizing deferred tax liabilities to be reported on its annual reports. 2. Discussion 2.1 Deferred Tax Liabilities Deferred tax liabilities (DTL) can be defined...
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...generally based upon by past firm transactions. The all-inclusive method recognises both operating income as well as revaluation increments (gains and losses) of net assets as part of income (clean surplus) (Hodgson, 2014). The all-inclusive income method was adopted by the Financial Accounting Standards Board (FASB) in 1997 and subsequently the International Accounting Standards Board (IASB), leading to ‘comprehensive income’ reporting. Comprehensive Income (CI) is the sum of Profit or Loss (P&L) and OCI. OCI comprises of items of income and expense not recognised in profit or loss as required or permitted by AASB (AASB, 2014) Recent Amendments permit P&L and OCI to be presented in as a single statement or in separate statements with the P&L section first. In the past, the FASB permitted a third alternative to recognize OCI in statement of equity (FASB, 1997), (AASB, 2011). Items within OCI also need to be grouped together, on the basis of whether they will eventually be ‘recycled’ to the profit or loss section of the income statement. One of the issues within the current Conceptual Framework is recycling. Presently there is no clear distinction on how it should be treated, with many diverging opinions among respondents ranging from ‘always recycle’ to ‘never recycle’ with majority supporting a ‘broad approach’, citing favoured flexibility. (IFRS, 2014). Recycling, also known as...
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...role is to approve the interpretations by the IFRIC. Australia has joined the revolution of accounting integration by the intention to adopt IFRS in 2003, with implementation required for reporting periods on or after 1 January 2005 (Nobes & Zeff, 2008). Intention of adopting IFRS is to embrace international harmonisation by having a single universal set of accounting rules and to optimize accounting quality reducing diversity in accounting practices and information asymmetries. Concurrently, many scholars has raised doubts and speculation of this ideology of accounting standardisation stirred up by the adoption of the controversial International Accounting Standards (IAS) 39 or in Australia, the Australian Accounting Standards Board (AASB) 139: Financial Instruments: Recognition and Measurement which has been subject to much criticism (Armstrong, Barth, Jagalinzer, & Riedl, 2008; Barth, Landsman, & Lang, 2006). Due to this uproar, the IASB has decided to review the standards for financial instruments formulating a new financial instrument standard, IFRS 9: Financial Instruments which would be implemented in January 2013, however, an option is given to companies if they wish to adopt the new standard earlier. Hence, this essay would discuss in depth the issues arising from the current financial instrument standard and discuss the effects of the implementation of the new standard with reference to two listed...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/0268-6902.htm MAJ 21,5 The impact of international financial reporting standards: does size matter? John Goodwin School of Accounting and Law, RMIT University, Melbourne, Australia, and 460 Kamran Ahmed School of Business, La Trobe University, Bundoora, Australia Abstract Purpose – This study seeks to examine the impact of Australian equivalents to international financial reporting standards (A-IFRS) on the accounts of small-, medium- and large-sized firms. Design/methodology/approach – For 135 listed Australian entities, the half-yearly accounts ended 30 June 2005 are examined to identify the effects of A-IFRS. Data are gathered on the change in major balance sheet and income statement elements, the major reconciling items and earnings variability. Findings – Findings show that more than half of small firms have no change in net income or equity from A-IFRS, and that there is an increase in the number of adjustments to net income and equity with firm size. The study also finds that A-IFRS has increased net income for small- and medium-sized firms. Equity has increased (decreased) under A-IFRS for small (large) firms. Small firms experience higher earnings variability than medium-sized or large firms under A-IFRS. Research limitations/implications – The sample is limited to 31 December reporting date firms and not all A-IFRS must be complied with when firms restate their comparatives...
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...proposals in this paper which should be forwarded to the following address: First Assistant Secretary Business Law Division The Treasury Parkes Place PARKES ACT 2600 Telephone: 02 6263 3960 Fax: 02 6263 2882 Email: clerp@treasury.gov.au Copies of this paper are available from the Australian Government Publishing Service and on the Treasury web site (http://www.treasury.gov.au). Enquiries concerning the paper can be made to: Ms Veronique Ingram Assistant Secretary The Treasury Telephone: 02 6263 3970 Printed by the Australian Government Publishing Service TABLE OF CONTENTS Page Abbreviations PART 1: PART 2: Reform Proposals Introduction 2.1 2.2 PART 3: Background Key economic principles v 1 9 9 10 11 11 12 13 13 14 16 17 19 19 19 20 22 23 The Case for Reform 3.1 3.2 Impetus for reform What the Government is seeking to achieve PART 4: Role of Accounting Standards 4.1 4.2 4.3 4.4 Objectives and impact of accounting standards Content of accounting standards Need for cost/benefit analysis of standards Appropriateness of particular accounting standards PART 5: Role of International Accounting Standards 5.1 5.2 5.3 5.4 5.5 Global environment Australia’s...
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...SecretaryBusiness Law DivisionThe TreasuryParkes PlacePARKES ACT 2600|Telephone:Fax:Email:|02 6263 396002 6263 2882clerp@treasury.gov.au| Copies of this paper are available from the Australian Government Publishing Service and on the Treasury web site (http://www.treasury.gov.au).Enquiries concerning the paper can be made to:Ms Veronique IngramAssistant SecretaryThe TreasuryTelephone: 02 6263 3970| Printed by the Australian Government Publishing Service Table of Contents Page Abbreviations v PART 1: Reform Proposals 1 PART 2: Introduction 9 2.1 Background 9 2.2 Key economic principles 10 PART 3: The Case for Reform 11 3.1 Impetus for reform 11 3.2 What the Government is seeking to achieve 12 PART 4: Role of Accounting Standards 13 4.1 Objectives and impact of accounting standards 13 4.2 Content of accounting standards 14 4.3 Need for cost/benefit analysis of standards 16 4.4 Appropriateness of particular accounting standards 17 PART 5: Role of International Accounting Standards 19 5.1 Global environment 19 5.2 Australia’s place in the world...
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...Solution Manual to accompany Accounting: Business Reporting for Decision Making 4e Jacqueline Birt, Keryn Chalmers, Suzanne Byrne, Albie Brooks & Judy Oliver Prepared by Jacqueline Birt John Wiley & Sons Australia, Ltd 2012 Chapter 1: Introduction to accounting Comprehension Questions 1.1 What is a business transaction and how does it relate to the accounting process? Illustrate the concept of a business transaction with five examples relating to a mobile phone distributor. A business transaction can be defined as external exchanges of resources between the entity and another entity or individual that affects the assets, liabilities and owners’ equity items in an entity. The accounting process is the identifying, measuring and communicating of economic information about an entity to a variety of users for decision-making purposes. The first component of the process is the identification of business transactions which are then measured and communicated to the different users of financial reports. Business transactions for a mobile phone distributor include the following: 1. The contribution of capital by the owner to commence the business. This transaction would increase cash (asset) and increase capital (equity). 2. The purchase of inventory (mobile phones) on credit. This transaction would increase inventory (asset) and increase creditor (liability). 3. The payment of office rent. This transaction would decrease cash (asset) and decrease...
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...STUDENT GUIDE Harvard Referencing System This student guide presents the most commonly used aspects of the Harvard Referencing System. Sources Snooks & Co 2002, Style manual: for authors, editors and printers, 6th edn, John Wiley & Sons, Australia. American Psychological Association 2001, Publication manual of the American Psychological Association, 5th edn, APA, Washington, DC. If further information is needed, students can refer to the ‘COMPREHENSIVE GUIDE: Harvard Referencing System’ or to the above publications in the Macquarie University Library. Students can also check with their departments or lecturers for on-campus Harvard referencing support. Acknowledgement A significant component of the Master of Accounting (MAcc) program is the Language for Professional Communication in Accounting Program (LPCA). The LPCA program is a collaboration of the Master of Accounting program and The Centre for Macquarie English (CME), formerly the National Centre for English Language Teaching and Research (NCELTR). The LPCA program provides tailored resources for specific units, as well as providing materials for additional generic workshops. Students are able to develop a high level of communication and professional skills and, at the same time, to develop technical skills. These resources are integrated with relevant technical content and are a significant part of the teaching and learning within individual units. Communication and professional skills are assessed, often together with...
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...STUDENT GUIDE Harvard Referencing System This student guide presents the most commonly used aspects of the Harvard Referencing System. Sources Snooks & Co 2002, Style manual: for authors, editors and printers, 6th edn, John Wiley & Sons, Australia. American Psychological Association 2001, Publication manual of the American Psychological Association, 5th edn, APA, Washington, DC. If further information is needed, students can refer to the ‘COMPREHENSIVE GUIDE: Harvard Referencing System’ or to the above publications in the Macquarie University Library. Students can also check with their departments or lecturers for on-campus Harvard referencing support. Acknowledgement A significant component of the Master of Accounting (MAcc) program is the Language for Professional Communication in Accounting Program (LPCA). The LPCA program is a collaboration of the Master of Accounting program and The Centre for Macquarie English (CME), formerly the National Centre for English Language Teaching and Research (NCELTR). The LPCA program provides tailored resources for specific units, as well as providing materials for additional generic workshops. Students are able to develop a high level of communication and professional skills and, at the same time, to develop technical skills. These resources are integrated with relevant technical content and are a significant part of the teaching and learning within individual units. Communication and professional skills are assessed, often together with...
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...Notes I.28 Session – I important that they would affect the auditor’s report if not resolved. They include the following: • Matters that are significant and involve issues regarding the appropriate selection, application and consistency of accounting principles pertaining to the financial statements, including related disclosures. Such matters often relate to accounting for complex or unusual transactions or to estimates and uncertainties and any applicable management assumptions. Results of auditing procedures that indicate the financial statements or disclosures could be materially misstated or that the auditing procedures need to be significantly modified. Circumstances that cause the auditor significant difficulty in applying auditing procedures he or she considers necessary. Other findings that could result in modification of the auditor’s report. Compliance of Auditing Standards and Audit Documentation – a must for all practice units satisfy any applicable legal or regulatory requirements for records retention. Internationally the norm is assemble the final audit file and submit it for archiving within 60 days from the date of our audit report. The PCAOB standard has shortened this period to 45 days. 51 The auditor would also need to adopt procedures that enable him or her to gain access to the documentation throughout that period. One way for auditors to accomplish this is by creating a policy to maintain electronic documentation. One needs to bear in mind...
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...gov.au. Printed on environmentally friendly paper. PTVH0291/13 Leading our public transport network – for all Victorians today and tomorrow. Contents Transmittal letter Abbreviations Chair and Chief Executive’s foreword 2 3 4 1 Structure and governance Organisational structure Public Transport Victoria Board Chief Finance Officer’s Statement 5 8 9 12 2 Highlights and Performance Report Highlights PTV Performance Report 15 16 22 3 4 Financial statements Appendices 31 99 1 Public Transport Victoria Annual Report 2012 – 13 2012 – 13 Annual Report transmittal letter 11 September 2013 The Hon. Terry Mulder MP Minister for Public Transport 121 Exhibition Street Melbourne VIC 3000 Dear Minister Annual Report 2012 – 13 In accordance with provisions of the Financial Management Act 1994, I am pleased to present the Public Transport Victoria Annual Report for the year ended 30 June 2013. Yours sincerely Ian Dobbs Chair and Chief Executive Public Transport Victoria 2 Public Transport Victoria Annual Report 2012 – 13 Abbreviations AAS AASB AO ATO CEO CNPL DDA DMS DTF DTPLI DWG FOI FRD FTE GFS GST HCS HSRs IAS IASB IBAC IRP km LSL m Metlink MP MTM Australian Accounting Standards Australian Accounting Standards Board Order of Australia Australian Taxation Office Chief Executive Officer Civic Nexus Pty Ltd Disability...
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...ACC30010 Auditing Unit Revision 1 S1, 2015 Exam Preparation: In presenting for the final exam it is expected you have: Read the set chapters in the textbook Read the lecture slides Done all of the set tutorial work Minimise what you are memorising – far better to understand: There will be some things you will need to commit to memory. There needs to be structure to your exam preparation: Topic summaries – not past exams! Read 2 as many auditing questions as you can. S1, 2015 Exam Information: Minimum Requirements to pass this Unit of Study: You must obtain a mark of at least 45% on the final examination to be eligible for a pass in this unit. This is non-negotiable!!!! 3 S1, 2015 Exam Information: Exam comprises 2 Parts: Part A is MCQ = 50 marks Part B are Short Answer Questions = 50 marks Total 100 marks All topics are examinable except: Introduction to Auditing (lecture 1) Ethics, Independence and Corporate Governance (lecture 4a) Sampling (lecture 10) NOTE: This information does not apply to any subsequent exams, such as the ‘special’ exams (SPX) or the ‘Last to Complete’ exams (LTC) 4 Statistical Overview of Unit - Averages: Mid-Semester Test: 8.9 / 15 Presentations: 7.7 / 10 (77%) Essay: 8.9 / 15 (SFS now accessible through your My.Swinburne account) 5 (59%) (59%) Nature and Objectives of Auditing 6 Elements of an...
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...ACC305 – Auditing and Professional Practice Unit Outline – 2015 Unit Coordinator: Dr Chun Jiang (PhD, FCPA) 1|P age Introduction Welcome to Elite Education and ACC305 – Auditing and Professional Practice. This document provides you with information relevant to successful completion of this unit; including schedule of lecture topics, prescribed texts, assessment policies, assessment tasks, examinations, academic and administrative contacts and online learning support facilities. Student Handbook and Administration Office The Elite Student Handbook provides valuable general information for students and a printed copy will be provided to you. In addition, the Institute staff are available to assist you personally during office hours. Office Contact Details: Elite Education Institute 1 James Place, North Sydney, NSW 2060 Tel: 02 9212 2120 Unit Overview This unit introduces the major conceptual and technical aspects of auditing and assurance services. Accordingly, the unit provides critical insights into the auditor's legal and societal role, the underlying conceptual theory of auditing, professional auditing techniques, and contemporary auditing issues. The core theme of this unit is the external audit of corporations, from initial planning to final reporting in the context of a professional environment. Assumed Knowledge Prerequisite: ACC101 – Fundamentals of Accounting I, ACC102 – Fundamentals of Accounting II, and ACC204 – Advanced...
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...- A/cting and the GFC "mark-to market" Lonergan (2009) - if A/cting causative factor in GFC 2008/2009 1.11 Q 1.1 Logergan 'standard setters'slow reaction only cause GFC ? NO How wisdom come out? - experience /knowledge Distinguishing feature - building relevant wisdom over time Parker et al. (1989) - induce other behaviour Miller(1994) - intrinsically and inredeemable social impact IMPACT Macro level: all types of business to gain power,control…… Micro level: achieve on the motivation and behaviour 1.12 Carnegie and Napier(1996) - X accept a/cting as a 'value-free body"…… NSW WATER "RIPOFF" 1.13 Shows how a/cting info prepared and used in ways to produce outcomes that could cause changes in society. Case 1.1 1.11 Theoretical analysis of social impact example Fig1.1 Page 1 of 16...
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...- A/cting and the GFC "mark-to market" Lonergan (2009) - if A/cting causative factor in GFC 2008/2009 1.11 Q 1.1 Logergan 'standard setters'slow reaction only cause GFC ? NO How wisdom come out? - experience /knowledge Distinguishing feature - building relevant wisdom over time Parker et al. (1989) - induce other behaviour Miller(1994) - intrinsically and inredeemable social impact IMPACT Macro level: all types of business to gain power,control…… Micro level: achieve on the motivation and behaviour 1.12 Carnegie and Napier(1996) - X accept a/cting as a 'value-free body"…… NSW WATER "RIPOFF" 1.13 Shows how a/cting info prepared and used in ways to produce outcomes that could cause changes in society. Case 1.1 1.11 Theoretical analysis of social impact example Fig1.1 Page 1 of 16 SEMESTER 2 2011 CPA 118...
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