Financial Accounting 2 Essay

1450 Words Jul 21st, 2013 6 Pages
This assignment is divided into three parts:
Firstly, the table below will explain the level of compliance and quality of disclosure for the key disclosure requirement between two companies.
Then, it will analysis which company provides the better level of disclosures for accounting for income tax.
Finally, a documentation which reflects the team-work performance will also be presented. AASB | Requirements of the Regulation | Company Analysis--ADQ | Yes/No1 | Company Analysis--EAL | Yes/No1 | 101:54 | Minimum line items on statement of financial position(n) current tax asset/liability(o) deferred tax asset/liability | (n) N/A - ADQ made a loss in previous year(o) DTA disclosed N/A DTL - set off of DTL SFP. P34
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P66 | YesYes | (a) current tax expense disclosed(b) N/A – No adjustments recognized current tax for prior periodsN8. P46 | YesYes | 112:80(c) | The amount of deferred tax expense (income) relating to the origination and reversal of temporary differences | The amount disclosedN8. P66, 67 | Yes | The amount disclosedN8. P46 N16. P52 | Yes | 112:80(d) | The amount of deferred tax expense (income) relating to changes in tax rates. | N/A – No change in tax rateN8. P66 | Yes | N/A – No change in tax rate. N8. P46 | Yes | 112:80 | The amount of benefit from a previously unrecognised tax loss:(e) to reduce current tax expense(f) to reduce deferred tax expense | (e) & (f) N/A - No recognition of previously unrecognized tax losses as a future taxable profit will be available.N8. P66,67 | YesYes | (e) & (f) N/A – No recognition of previously unrecognised tax losses as the tax position of EAL is profitableSCI. P30 N8. P46 | YesYes | 112:80(g) | Deferred tax expense arising from the write-down (WD), or reversal of a previous WD of DTA. | N/A – No change in recognized deductible temporary differences | Yes | N/A – No change in recognised deductible temporary differences | Yes | 112:80(h) | The amount of TE& TI relating to changes in AP and

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