Assignment on Accounting Theory
Added on 2021-05-31
9 Pages2241 Words23 Views
FinancePolitical Science
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Running head: ACCOUNTING THEORYAccounting TheoryUniversity NameStudent NameAuthors’ Note
2ACCOUNTING THEORYAbstract The rationale of the current study is to analyze the association between scholarly accountingresearch and specialized practice. The current study presents an editorial appraisal andacknowledges that scholarly accounting research is crucial for the higher educationarrangement, careers as well as publishers. Nonetheless, its influence on training, specializedpractice, accounting professions as well as society on the whole is a highly debated matter.Essentially, the editorial refers to opportunity for accounting scholars to engage in thisprofession and use their research work to influence significant concerns in higher educationacross the globe. The study at hand delivers important commentary on the associationbetween research on accounting as well as specialized practice as reflected in variousscholastic journals and for that a real case is taken into consideration. Particular case onarticle by ErykBagshaw is taken into account that the issue of tax exemptedearning of football league and its application that is mentioned in the articlepenned by ErykBagshaw. Also, the article focuses on the total tax amountexempted from earnings as well as what is done with the same.
3ACCOUNTING THEORYIntroduction The study at hand elucidates in detail about income tax exemption in varied non-profit unitssuch as sporting clubs or gaming associations. As per the regulation, income tax exemption isnot applicable to a cluster of entities jointly referred to as “club”. Essentially, each specificentity operating in the group has the need to evaluate their own exemption status of incometax. An analytical assessment of news article on tax exempted earning of football league ishereby presented. It can be hereby seen that huge income is acquired by some of leagues ofAustralian football, despite the fact that they retained the tax free spot and requested for statefunding for development building as well as upgrading of stadium facilities utilizing moneyof the tax payers. Detailed DiscussionThe article penned by ErykBagshaw expound about exemption of tax of diverse sportscorporation. Particularly, this explicates in detail about the football leagues that make use ofstate government finance that is the support of the money of tax payer’s contributions fordevelopment of facilities of stadium (Loh et al. 2015). Particularly, the ARI as well as theNRL are acquiring huge wealth by not disbursing tax payments. In itself, concessionsprovided to the Sports Corporation has enhanced the operating surpluses. This subsequentlyhas led to augmentation of profits by 63% to approximately $330m for AFL in the year 2016and doubling of profit to $133m for NRL during the same financial year. According to the regulation, Tax Free Status is provided to sporting clubs only when theentity is registered as a “not for profit (NFP)” one and is instituted for the purpose ofencouraging a certain sport or else a sport and animal racing. Furthermore, in case when thesports club satisfies any one of the tests namely physical presence in nation Australia test,
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