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Corporate Finance And Accounting Assesment

   

Added on  2022-09-11

11 Pages563 Words15 Views
Corporate Accounting
Corporate Finance And Accounting Assesment_1
Introduction
The paper studies the effect of income tax on the
corporate accounting of a company. The company
taken for analyzing different concepts related to tax is
the Woolworths corporation ltd.
The company is listed under the ASX stock
exchange and follows the tax regime of Australia.
The corporation tax rate is 30%.
Corporate Finance And Accounting Assesment_2
Terminologies
Accounting profit is the net income earned by an
organization as per GAAP.
Taxable profit is the profit earned by the company
which is taxable under the applicable taxation law.
Temporary difference means the difference between
the carrying value of assets and liability with its base
rate.
Temporary difference can yield taxable amounts
known as taxable temporary difference.
Corporate Finance And Accounting Assesment_3
Deductible temporary difference are the temporary
difference which generates deferred tax assets or
liabilities which are subtracted or added back in the
future accounting income.
Deferred tax assets- It is the amount of income tax
which is recoverable in the future in relation to
deductible temporary differences, carry forward of
unused tax losses and the carry of unused tax
credits.
Corporate Finance And Accounting Assesment_4

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