...1.0 Introduction This assignment focuses on the effects of Deferred Tax Assets (DTA) on entities and how entities make justifications on DTA arise or in this case, the Product Warranty, and the recognition criteria for DTA. A Deferred Tax Asset represents the increase or decrease in taxes payable or refundable in future years as a result of ‘Temporary Differences’ and Net Operating Loss or Tax Credit carry-forwards that exist at the reporting date (Nelson, Spiceland and Sepe, 2011). This is similar to the definition of DTA stated in the Accounting Standards AASB 112 Paragraph 5. Temporary Differences arise when the events are recognized in one period in a bank’s book but are recognized in a different period on its tax return. To find Deferred Tax Assets (DTA), first find Tax Base (TB) by taking Carrying Amount (CA) less the Future Taxable Amount and adds Future Deductible Amount. Having TB larger than CA, there will be Deductible Temporary Difference (DTD), while having TB lesser than CA gives rise to Taxable Temporary Difference (TTD). By multiplying the DTD with the Tax Rate, DTA will be calculated. 2.0 Discussion 2.1 Provision for Product Warranty A Product Warranty is generally a guarantee from one party to another that a certain conditions or facts are true or will happen. A product warranty is a provision because when a product warranty is issued, there is a legal obligation and settlement is expected to result in an outflow of resources (McNicholas and...
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...Kudler Fine Foods is a growing business in an evolving world. Modern technology advancements in accounting information systems will aid Kudler in the company’s growth and will eventually reduce accounting costs and the time it takes to complete accounting processes. We recommend that Kudler switch from paper accounting to an automated system, such as POS system to enhance the payroll, accounts payable, accounts receivable, and inventory processes. Accounting Information Systems Kudler Fine Foods is a company that was started with an idea and has now expanded their chain into three additional stores within a couple of years. They are in need of software suitable for the specific needs of the organization. Analyze the nature of the software that Kudler would benefit most from is very important. A collective discussion will be on the accounting information system (AIS) in regards to the internal controls of Kudler’s Fine Foods and what the company will need in order to run reports and statements. Rational and Analysis of Recommendation If a company takes the time to develop their accounting system it will provide the organization with a long term benefit. It allows a company to meet their financial obligations with accurate reporting. Kudler Fine Foods benefit best if they developing a customized system. Although the development of a customize system could become significantly costly and very time consuming with implementation the advantage is that the system is designed to...
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...the deferred tax asset as the amount of income taxes recoverable in future periods in respect of deductible temporary differences, the carryforward of unused tax losses and the carryforward of unused tax credits. A deductible temporary difference occurs as a result of a difference between the carrying amount of an asset or liability in the statement of the financial position and its tax base (Locke, C., 2004), in which the amount is deductible in determining taxable profit (tax loss) of future periods when the carrying amount is recovered or settled. In Surewin Ltd’s case, in terms of the accounting treatment using the accrual basis, the company recognises a product warranty expense in profit and loss for the year end from its provisions for product warranty. Whereas under the tax treatment which is cash based, the company is allowed to claim tax deductions only after it has paid out the warranty costs. There is a timing difference between when the warranty expense is recorded in the accounting books of the company (immediately) and when the liability is claimed and paid for in cash (in the future). Therefore, the difference in the carrying amount of the liabilities for product warranty in the balance sheet of the company and its tax base results in a future deductible amount. This amount is known as a deductible temporary difference, in which results in a deferred tax asset at a 30% tax rate. Part (b): Paragraph 24 outlines the recognition criteria for deferred tax asset...
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...Case study of “Rigorous or Not?: A Case of Auditor Judgment for Deferred Tax Issues” Judgment Framework and Professional Judgment Discuss the importance of “judgment framing.” “Judgment framing” occurs early in the judgment process. The definition of framing follows: Frames are mental structures that we use, usually subconsciously, to simplify, organize, and guide our understanding of a situation. They shape our perspectives and determine the information that we will see as relevant or irrelevant, important or unimportant. Frames are a necessary aspect of judgment, but it is important to realize that our judgment frames provide only one particular perspective. The importance is that judgment framing question management’s perspective appropriately by viewing other frames and it is a foundation to professional skepticism. How do perceptual biases relate to judgment biases? Our eyes and related perceptual skills ordinarily are quite good at perceiving and helping us to accurately judge shape similarity. However, optical illusions can predictably and systematically fool our eyes. The judgment biases are similar to the perceptual ones, like there are times when our intuitive judgment falls prey to systematic traps and biases. What are the five steps in the judgment process? a. Clarify Issues & Objectives: To get at issues, ask “what is the problem to be solved?” To get at objectives ask “what is wanted or needed?” Ask “what” and “why” questions. b. Consider...
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...have very high standard….soo….plz make spare few hours for this and post me the answers na aku…….. These are the questions…….? Question 1 Why do some individuals consider tax deferred to be taxes saved? Is their reasoning logical? (4 marks) Question 2 Mr. Karma is an employee of XYZ ltd. He draws salary @Nu.20,000 p.m during the year 2010-2011. He occupies residential house at Thimphu. Its rent is Nu.6000 p.m. He is offered three alternatives by the employer: 1) The company pays the rent direct to the landlord, the tenancy being between the company and the landlord. 2) The company pays house rent allowance to karma @Nu.5750 p.m and karma pays rent of Nu.6000 p.m to the landlord-the tenancy being between karma and the landlord. 3) The company neither offers karma the house accommodation, nor the rent allowance. Karma pays rent of Nu.6000 p.m for the accommodation occupied by him. He requests you to advise him as to which option would minimize his tax liabilities and maximize the cash inflow after tax. (5 marks) Question 3 Governments around the world are becoming increasingly sensitive to the loss of revenue resulting from multinational companies moving into other jurisdictions, most particularly tax havens, to lower their overall rates of tax. What are some of the measures that can be adopted to prevent such revenue losses? (5 marks) Question 4 Maxisoft is a private company incorporated, managed and controlled in country...
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...University. In these studies, a child was offered a choice between one small reward (sometimes a marshmallow, but often a cookie or a pretzel, etc.) provided immediately or two small rewards if he or she waited until the experimenter returned (after an absence of approximately 15 minutes). In follow-up studies, the researchers found that children who were able to wait longer for the preferred rewards tended to have better life outcomes, as measured by SAT scores,[2] educational attainment,[3] body mass index (BMI)[4] and other life measures.[5] However, recent work calls into question whether self-control, as opposed to strategic reasoning, determines children's behavior. The purpose of the original study was to understand when the control of deferred gratification, the ability to wait to obtain something that one wants, develops in children. The original experiment took place at the Bing Nursery School located at Stanford University, using children age four to six as subjects. The children were led into a room, empty of distractions, where a treat of their choice (Oreo cookie, marshmallow, or pretzel stick) was placed on a table, by a chair.[1] The children could eat the marshmallow, the researchers said, but if they waited for fifteen minutes without giving in to the temptation, they would be rewarded with a second marshmallow.[1] Mischel observed as some would "cover their eyes with their hands or turn around so that they can't see the tray, others start kicking the desk, or tug on...
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...|Grade Level: 4th & 5th Grades | |Topic: Behaviors that disrupt communication | |Essential Question: | |How do our personal behaviors affect the climate/atmosphere of the classroom? | |Activating Strategy/Introductory Activity/HOOK: | |Select 2 – 3 students to sit in chairs facing one another. Instruct the students to count how many times they can hit a balloon | |back and forth w/out it touching the floor and w/out getting out of their seats. Afterwards, discuss whether or not they wanted | |to “slam” the balloon at the other person. If so what they did about that impulse? How did they stop themselves? | |Teaching plan: | |Write IMPULSE on board and define – a feeling or urge to have to do or say s/thing | |Ask: | |Have you ever been told that you were...
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...John Palfrey, a former executive director of Harvard's Berkman Center for Internet & Society once stated, “Television did not transform education. Neither will the internet. But it will be another tool for teachers to use in their effort to reach students in the classroom. It will also be a means by which students learn outside the classroom” (pg. # if available – if not just put the period inside the quotations and delete all of this). Social media is so popularized today that it is finding its way into the classroom. It is available 24/7 on a variety of different devices and has the potential to aid in academic success, but it also holds a lot of setbacks (Alwagait, Shahzad, and Alim 1092). When there is a lack of balance between social media and real life, many problems can arise. Some of the problems include lack of time management, poor academic standing, and lack of self-control. In many instances one or more of these problems overlap. * Make the font type the same throughout paper- may just be showing up different on my computer for some reason Time management is paramount to a successful college experience; therefore, poor time management can in turn affect academic performance. Factors that account for poor time management are known as time traps. Today, one of the biggest time traps is technology (Bal Bal- is this person’s last name Bal Bal or should it be Bal and Bal? 134). In the 21st century, social media and the use of technology have skyrocketed in popularity...
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...Thesis Statement and Outline Online Shopping vs. Brick and Mortar Shopping Both forms of shopping have one goal in mind. That goal is to get the item that you desire. Many of the stores that you visit on a daily basis can come to you online. I. You can shop in the comfort of your own home. A. You do not have to worry about getting ready to go shopping. 1. You can shop in your pajamas if you prefer. 2. You can shop when it is convenient for you. B. You do not have to fight crowds in the mall or store. 1. There is no traffic to worry about getting to the stores. 2. During the holiday season, you do not have to worry about many people crowding you. II. You can see what you are buying. A. Depending on what you buy, you can feel the item and actually see the item. 1. You can feel the texture or weight of an item. 2. You can see if the item is big or overweight. B. There is no wondering if you are getting the item that you ordered. 1. You can be positive that you are getting the correct item. 2. You can see the exact shade or style of what you are buying in person. III. Instant gratification A. There is no waiting to receive your item. 1. You are able to take your purchase home that same day. 2. Site to store is an option with many stores and it is possible to pick it up that day. B. Being able to choose...
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...Grit Test Questions: 1. New ideas and projects sometimes distract me from previous ones. • Not like me at all. 2. Setbacks don’t discourage me. • Not much like me. 3. I have been obsessed with a certain idea or project for a short time but later lost interest. • Not like me at all. 4. I am a hard worker. • Very much like me. 5. I often set a goal but later choose to pursue a different one. • Not like me at all. 6. I have difficulty maintaining my focus on projects that take more than a few months to complete. • Not much like me. 7. I finish whatever I begin. • Very much like me. 8. I am diligent. • Very much like me. 9. Gender • Male 10. Year of Birth • 1989 11. Do you currently live in the United States? • Yes 12. Ethnicity • Caucasian/White 13. Highest Level of Education • Associates Degree Result: 4.88 Out of 5 90% Grittier than people of your age. Ways to Improve My Grit I noticed throughout the test I had one question in particular that I had answered less than exceptional on. “It being difficult to maintain focus on projects that take more than a few months to complete.” I believe some of this is due to the fact that I am a patient person, but eventually my patience runs thin. This causes me to get\ discouraged and more willing to give up. Although, I have noticed throughout the years, as I get older, that my patience and my discouragement become less and less. I can...
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...Reflection Journal #5 (Chapter 10; pg. 251) Directions: Answer the prompt provided and answer an additional question from the guided journal questions in Chapter Ten on page 251 (please write the number of the question you chose). (5 Points) Prompt: #1. Analyze your self-discipline for college by answering the following: How difficult or easy is it for you to delay gratification (wait for a reward)? Accept responsibility? Balance between immediate and delayed gratification? Explain thoroughly and use examples for each question. I think it is not easy for me to delay gratification because I feel everything is like a mess. For example, I will travel to Paris tomorrow. I think if I prepare my luggage one or two day before the flight’s day, it is sooner. Thus, I decide to prepare them in the morning before my flight. However, when I arrive at airport, I forget something such as my wallet or my passport because I don’t have enough time to check again. Maybe, I put somewhere in my handbag or my baggage and I can’t remember. We have to accept responsibility when we delay gratification. We can’t blame for time or someone else. For instance, when I have exam next day, I don’t review lessons. I think it won’t be waste lots of time before the exam. Therefore, I will review them quickly before taking exam. To balance between immediate and delayed gratification, I think we know how to manage time. Which date and time should be priority? We will do it immediately. For example...
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...Words to Live by; "My power lies in balance. I strive for equality and choose not to indulge in instant gratification at the expense of my purpose. I am responsible for my own decisions and take on only what I can handle based upon that which I value. I am empowered by choice and my asset is negotiation". Unfortunately, easier said than done. The power of peers always amazes me. I can have an absolute purpose in mind, and get me around several peers out for no good, and I become one of the pack. Becoming one of a pack can never have a good ending. It was going to be a boring Friday night. Just the thought of sitting at home watching some old rerun with my mom rubbed me the wrong way. But earlier, I had an invite from Jennifer to a birthday sleepover. At 17, I'm past the age for sleepovers but weighing my options, a sleepover didn't sound so immature. I found myself getting an address and saying I'll see you around 8. At home I get on Facebook to see who all is going to be there. The more I read, the more I know I shouldn't be attending this gathering. It has become more than a sleepover. The location has been moved to the house of some older boys who have graduated and are renting out a house referred to as the "party house". I know there will be no supervision, but this just makes it more interesting. I tell my mom, of course, it is still a sleepover for one of my friends birthday. I get her to drop me off before she has to go pick up my sister at...
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...ET Section 100 - Independence, Integrity, and Objectivity 100-1 Conceptual Framework for AICPA Independence Standards Sec.101 – Independence When performing attest engagement- Consult with the various organization that issues or enforces standards of independence. Ind. requirements or rulings might differ from those of the AICPA. Independence is impaired when: 1. A cover member had or was committed to acquire any direct or material indirect financial interest. 2. Was a trustee or executor or adm. of a estate committed to acquire any direct or material indirect financial interest in the client and the member can: Make investment decisions The trust or estate owned or will acquired > 10% of outstanding equity securities or ownership interest. The value of the trust or estate's holding in the client >10% of the total asset or estate. Had a joint closely held investment (material ) Had a loan with an individual owning > 10 % of the client's outstanding equity securities or ownership interests. A partner or professional employee of the firm, his immediate family, or any group of such persons acting together owned >5 % of a client's outstanding equity securities or other ownership interests. During the period covered by the financial statements or during the period of the professional engagement, a firm, or partner or professional employee of the firm was simultaneously associated with the client as a(n) 1. Director, officer, or employee, or in any capacity equivalent...
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...Self-Regulation and Willpower Instructions: Use this worksheet to reflect on self-regulation and willpower. Items with a blue asterisk require completion (*). 1. Summarize the main ideas from the video and article in one paragraph each. A. Video – “The Science of Willpower: An Interview with Kelly McGonagall”* The video for Week 2 Assignment is all about willpower and how it works. Having inner experiences and impulses and still directing the energy and attention to the things that matter the most to you. You have to know what you really want and not let the universe impose on you. You need to take action to have the ability to say yes to yourself. Willpower is like having three (3) powers I (will), I (wont), and I (want). I use me (will) and I (want) power the most and resist most of the temptations. I have self-compassion; I take small steps for small actions and get a bigger change. Sometimes we have to force ourselves to do things that we really don’t want to do but need to do. B. Article – “Academic Delay of Gratification, Motivation, and Self-regulated Learning Strategies”* 2. Using your own words define willpower and explain what it means to you.* What Willpower means to me is when you hold yourself back from doing something you may regret in the future. Having willpower is the ability to recognize when you’re about to do something that is inconsistent with your culture, values, and literally put on the I won’t brakes on and say I will. An example of...
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...M aking Sense of Deferred Tax Assets and Liabilities Facebook (http://www.facebook.com /sharer.php?u=http%3A%2F %2Fquickbooks.intuit.com%2Fr%2Ftaxes%2Fmakingsense-of-deferred-tax-assets-and-liabilities) + POSTED IN TAXES (HTTP://QUICKBOOKS.INTUIT.COM/R/TAXES/) by Patricia Poladian (http://quickbooks.intuit.com/r/author /patriciapoladian/) on Jun 29, 2015 If you have your financial statements prepared for lenders or investors, your accountant may have noted deferred tax assets or deferred tax liabilities on your balance sheet. These assets and liabilities can directly affect your company’s cash flow for subsequent years, so it’s important to understand what yours represent and how likely you are to realize them. What Creates Deferred Tax Assets and Liabilities The revenue and expenses you report on your income statement don’t always translate into income and deductions for tax purposes. Tax accounting and financial accounting have slightly different rules, which is why your business's taxable income isn’t always the same as the net income on your financial statements. Some of these instances result in permanent tax differences. For example, interest income from municipal bonds is excluded from taxable income, and half of meals and entertainment expense is always disallowed. Other differences are temporary. These differences have to do with timing. You’ll end up recognizing the income and expenses eventually, but you just may recognize them sooner under one system than you...
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