Explain why income tax expense is usually not equal to accounting profit multiplied by the company tax rate.
300 words!!!Question 2: Accounting for Income Tax
Using the information relating to income tax in the financial statements of your Company, answer the following:
(i) What is the income tax expense included in the profit or loss for the year?
(ii) Determine whether there is any income tax included in other comprehensive income;
(iii) State the current and deferred tax components of income tax expense;
(iv) Determine whether a deferred tax asset or deferred tax liability or both is disclosed in the statement of financial position and comment on the magnitude of these balances;
(v) Provide the reference to the applicable note to the accounts and state the amount of the balance of deferred tax asset or deferred tax liability recorded there; and
(vi) Explain why income tax expense is usually not equal to accounting profit multiplied by the company tax rate.
Comments: When answering this question, please provide $ amounts (two years’ figures) when appropriate. The word “magnitude” refers to the size of the balances. Again, please provide figures for both years. When you talk about the size of the amount, the issue of materiality may briefly be discussed.Question:3
(ii) Refer to the allocated ASX company’s annual report:
(a) What is the amount of total comprehensive income for the year ended 30 June 2015?
(d) Explain how the ‘Principles of consolidation’ accounting policy complies with the requirements of AASB 10.Please see the attachment