FNSACC514 Prepare financial reports for corporate entities - Assessment 2

Task 5

Part A
Income tax of Boral Limited Annual Report showed the values of income tax expense, deferred tax liability and deferred tax assets.

Part B
Tax rate given in the Annual Report is 30% which will be used find the Deferred Tax.
Temporary difference will be multiplying with 30% tax rate to get the value.

1. Interest income of $950 relating to next year had been received by 30 June. Interest income is taxed on receipt.
2. At the balance date, the receivables general ledger account has a balance of $21,300 and the allowance for impairment account has a balance of $1,150.
3. The business had an opening balance in the Provision for long service leave (LSL) account of $9,000. During the year, long service leave paid totaled $3,500 (this was paid from the provision account) and a further transfer to the provision of $6,000 was made on 30 June.
4. The business purchased factory equipment for $300,000 on 1 July last year. The accounting depreciation rate is 30% but the tax depreciation rate is 25%.
5. An amount of $32,000 for prepaid insurance is deductible in the current year