HA3011 Advanced Financial Accounting - Assignment 2

Week 9 - Question 4 (10 marks)

A. You are provided with the following information form the accounts of BBS Ltd for the year ending 30 June 2019

Required:
Calculate the taxable profit and accounting profit for the year ending 30 June 2019.

B. GYV Ltd has the following deferred tax balances as at 30 June 2019.
Deferred tax asset  $9 00 000
Deferred tax liability  $7 00 000

The above balances were calculated when the tax rate, was 20 per cent. On 1 December 2019 the government raises the corporate tax rate to 25 per cent.

Required:
Provide the journal entries to adjust the carry-forward balances of the deferred tax asset and deferred tax liability.

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