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Tax Assignment - Westin Insurance Company

   

Added on  2020-04-15

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Running head: WESTIN INSURANCE COMPANYWestin Insurance CompanyName of the StudentName of the UniversityAuthors NoteCourse ID
Tax Assignment - Westin Insurance Company_1

WESTIN INSURANCE COMPANY1Table of ContentsAnswer to question 1:.................................................................................................................2Answer to question 2:.................................................................................................................2Answer to question 3:.................................................................................................................3Answer to question 4:.................................................................................................................3Reference List:...........................................................................................................................5
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WESTIN INSURANCE COMPANY2Answer to question 1: The deferred tax asset is identified for the loss carried forward from the operatinglosses in the balance sheet to the extent that is taxable during the existing temporarydifferences for an appropriate type that is reserved for an appropriate type. Reversing thosetaxable temporary differences provides the utilisation of the unused amount of tax losses andjustifies the identification of the deferred tax assets (Laux, 2013). On the circumstances whenthe it is noticed that the extent to which the unused amount of tax losses can be recoveredagainst the future taxable profit for every year, the amount of deferred tax assets that isidentified for the operating loss is identified operating loss from the current differences islimited by the law. The reason behind this is that appropriate temporary differences reverses the amountof tax losses that can be used by the reversal as stated by the taxation law. If the unusedamount of tax losses exceeds the sum of appropriate current taxable temporary differences anadditional deferred tax asset should be identified under the paragraph 29 and 39 of the IAS12. This represents that the entity will be having an appropriate taxable profit till the extentthat the tax planning is available to the entity which will create correct taxable profit. Answer to question 2: As stated under the US GAAP, the impact of new legislation is identified on thereporting of tax benefit and the impact of the change in the tax laws or rates on the deferredtax liability or the deferred tax asset as the discrete item during the interim period whichincludes the enactment date. The impact of changes in the tax that is presently payable orrefundable by the Westin Sun Insurance Company for the current year can be reflected in thecalculations of the yearly effect tax rate. As a result of this, any impact of the tax laws or thechange of rate on taxes that is payable or refundable for the previous year can be identified
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