Explain why a temporary difference relating to employee benefits obligations for long-service leave creates a deferred tax

Question:

Explain why a temporary difference relating to employee benefits obligations for long-service leave creates a deferred tax asset.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 9781743767382

9th Edition

Authors: Craig Deegan

See More Books

Question Posted: Sep 10, 2023 07:48 AM

See More Questions

Assume that for a particular company the only temporary difference for tax-effect accounting purposes relates to the depreciation of a newly acquired machine. The machine is acquired on 1 July 2015...
Harvey Ltd commences operations on 1 July 2018 and presents its first statement of profit and loss and other comprehensive income for the year ending 30 June 2019 and the first statement of financial...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Elmira, Inc had $20,000,000 of bonds outstanding on Dec 31, 2018. The ten year bonds were issued on Jan 1, 2012 for $21,000,000. Elmira can call the bonds at 102% any time after Jan 1, 2018. At the...
Starting from equilibrium in the loanable funds market, what changes in loanable funds supply or demand would tend to cause a surplus of funds at the current interest rate? What changes in loanable...
How do you calculate the room occupancy percentage and the average daily rate?
In which four areas must quality be considered? How do they interrelate? LO.1
The Maxwell Company is financed entirely with equity. The company is considering a loan of $1.8 million. The loan will be repaid in equal installments over the next two years, and it has an interest...
Exercise 16-2 (Algo) Indirect: Reporting cash flows from operations LO P2 Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Expenses : Cost...
In this exercise, you create an application that allows the user to enter the gender (either F or M) and GPA for any number of students. The application should calculate the average GPA for all...
Will the existence of unused tax losses always lead to the recognition of a deferred tax asset?
What is the justification for recognising a deferred tax asset because an entity has unused tax losses?
Produce graphs of f that reveal all the important aspects of the curve. In particular, you should use graphs of f' and f" to estimate the intervals of increase and decrease, extreme values, intervals...
# III: Worksheet 3 1. A 20 kg mass is allowed to accelerate down a frictionless 15 ramp. 20 kg 15 a. Draw a force diagram for the block. b. Determine the value of the x-component of the force of...
3.Baker Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product Production Volume: 1,000 units:...
Suppose that you own the only company in the market to produce a certain product, and therefore you can determine the market price P dollars for each unit. Due to government regulations, the price of...
describes how the blast pressure front can bounce off solid, immovable obstacles and be redirected in another direction in a linear angle to the angle of the obstacle hat was struck
As the accounting clerk, you are tasked by the CFO to determine the cost of goods sold of Del Mundo Company for the year ended December 31, 2020. During Operating cost data annd inventory account...
Discuss the pros and cons of binomial probability tables.
Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Clevelands outstanding stock. No excess amortization resulted from these...
In recent years, Walz Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation...
Rogers Corporation purchased machinery on January 1, 2012, at a cost of $250,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of...
Franz Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. Debits 1. Cost of real estate...
This short exercise demonstrates the similarity and the difference between two ways to acquire plant assets. (Click the icon to view the cases.) Compare the balances in all the accounts after making...
Balance sheet and income statement data for two affiliated companies for the current year appear below: BALANCE SHEET As at December 31, Year 6 Albeniz Bach Cash $ 40,000 $ 21,000 Receivables 92,000...
please reference excel cells Caroll Manufacturing company manufactures a single product. During the past three weeks, Caroll's cost accountant observed that output costs varied considerably. The...

Explain why a temporary difference relating to employee benefits obligations for long-service leave creates a deferred tax

Question:

Step by Step Answer:

A temporary difference relating to employee benefits obligations for longservice leave can create a deferred tax asset due to the way accounting stand...View the full answer

Financial Accounting

Students also viewed these Business questions