corporateaccounting课件chapter6AccountingforIncomeTax幻灯片.pptVIP

* Change in tax rate When a new tax rate is enacted, the new rate is applied: when calculating current tax liability when calculating adjustments to deferred tax accounts to carried forward deferred tax balances from previous years Example DT balances based on 30% tax rate: DT liability $36,000 DT asset $12,000 Journal entries to adjust tax rate (25%) on opening balances: 30/6/xx DT Liability Dr 6,000 DT Asset Cr 2,000 IT Expense Cr 4,000 Income tax losses Tax losses are created when tax deductions exceed assessable income plus exempt income The ITA Act allows losses to be carried forward and used as a deduction against future taxable profit Tax losses provide future deductions and (subject to recognition criteria) create deferred tax assets Exempt income cannot contribute to carry forward losses If prima facie tax loss is $10,000 and exempt income is $2,000 the allowable carry forward tax loss would be $8,000 Income tax losses Recoupment occurs as soon as a taxable profit is earned Recovery of tax loss reduces taxable income Tax loss must be reduced by any exempt income Recognition of DT assets from tax losses is required if future taxable profits are probable Usually requires taxable temporary differences Strong evidence that taxable profits are soon to emerge Recognition of DT assets from tax losses recognises the tax benefit in the PL of the same period Non-recognition means tax benefit is deferred until realised Demonstration problem The statement of financial position of ABC Ltd at 30 June 2015 Assets Liabilities Cash 260 Trade payables 296 Trade receivables 300 Loan 485 Allowance for d/debts (30) 270 Annual leave liability 15 Interest receivable 40 Deferred tax liability 9 Inventory 100 805 Plant 500 Equity Accum dep’n (300) 200 Share capital 700 Goodwill 800 Retained earnings 175 Deferred tax asset 10 875 1,680 Demonstration problem Additional information: The balances in the deferred tax asset and liability accounts are th