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HI5020 - Corporate Accounting
Corporate accounting helps in account handling and financial accounting of organisations according to accounting reports and financial statements. Accounting for income tax deals with cash flow management, financial report acknowledgements and balance sheet evaluation. In addition, corporate accounting manages taxation of income statements, assets and liabilities associated with the organisation. In this case, ANZ Banking group is selected for income tax accounting, which is one of the ASX listed company. The study elaborates various concepts such as accounting profit, taxable profit, deferred tax assets and liabilities. Recognition criteria of deferred tax liabilities and assets of the organisation are identified. Expense taxes, tax treatment and changes in cash flow and income statement provide insight into corporate accounting.
i) Discussion of Key Concepts
Accounting profit can be termed as companies’ total earnings, which are calculated as per Generally Accepted Accounting Principles (GAAP). Accounting profit of organisations follows certain frameworks, rules, policies and standards in terms of corporate accounting (Rostami 2017). In addition, profit attained within a specific time span can determine accounting profit. Organisations perform accounting profit as per principles for the preparation of financial statements. The profit includes taxes, operating costs, expenses, explicit costs,