BUACC2603: Corporate Accounting-Research Report Assignment

Internal Code: MAS769

Research Report Assignment:

Question: In virtually all commercial settings we might expect that the notice of liability carries the connotation only of an amount legally owing. But in conventional accounting it is not the  case. As with the notion of asset there are items appearing in the financials as left-overs from the processing of the transactions data – in a sense capitalised liabilities, and there are the injection of pure fictions such as deferred tax liabilities (the counterparts of the ‘deferred tax asset’), and the imputation of ‘provisions’ for obligations that might accrue. The first arises by virtue of the accrual system being based upon revenues being allocated on the basis of time rather than receipt, the second by virtue of the tax effect system of accounting, and thethird from bringing to account expected obligations before they arise Download a 2015 annual report for a listed company from the Australian Securities Exchange (ASX) website. Groups are not allowed to do the same company and should discuss their selection with their tutor prior to commencing their research assignment (Banks are not allowed as they have particular reporting requirements). 1. With reference to the above statement describe what you understand by the accounting concepts mentioned and provide examples from your selected annual report. 2. Discuss the problems of tax effect accounting addressed in the above statement in the context of the present AASB / IASB standards and the conceptual framework using your selected annual report to provide examples. 3. Comment on the issues of tax effect accounting in the above statement as they relate to the provision of decision useful information. Use your selected annual report to provide examples.