The directors also advised the financial accountant to make a provision for:         (i)   bad and doubtful debts of $30,000;         (ii)  annual leave and long service leave of $60,000. The company directors come to you as the taxation adviser of the company and wish to know how each of the items mentioned above are to be treated for taxation purposes.

You are in the tax department at a large public accounting firm and you are working with your new client, Big Corporation.  Big Corporation prepares their financial statements (Book Income) based on US Generally Accepted Accounting Principles (GAAP).  The Controller is very familiar with GAAP accounting but is unsure about this need to adjust Book Income to Taxable Income and wants to understand it better.  You have already identified five questions that the Controller has concerning these Book to Tax Differences from your first meeting.  You are planning to meet again with the Controller to discuss those listed five items identified below, Items 1 to 5.  For that upcoming meeting, please write in a paragraph or so for each item (i.e. 1, 2, 3, 4 and 5) so you can be prepared to verbally discuss with the Controller each item.  There is no need for any references to tax law and do not worry about grammar or spelling since this will be your notes only for the upcoming discussion and the…

1. List three types of records that a company must keep for tax purposes.   2. Explain why the ATO conducts audits.   3. List three key principles that should be followed when managing a work team

The annual reports of public corporations normally include a section on Management Discussion and Analysis (MD&A). Please examine the MD&A section of your selected company and let us know about any comments included regarding management's assessment of the company's liquidity and the availability of capital to the company. Also, please select one of the profitability ratios and calculate or find it for your company. Please let us know what this profitability ratio indicates about the financial health of your company.

Performing Accounting Research When a company is uncertain as to the disposition of a tax position, it becomes a question as to the amount of tax benefit to recognize in the financial statements. Resolution of tax positions may take years. A company is trying to determine how to estimate the benefit to recognize related to an anticipated tax settlement with a taxing authority. What guidance is available in the Codification in reporting this information? FASB ASC 0 0 Check X x 0

Assume you are employed as the chief financial officer of a corporation and are responsible for preparation of the financial statements, including the adjusting process and preparation of the adjusted trial balance. The company is facing a slow year, and after your adjusting entries, the financial statements are accurately reflecting that fact. However, as you are discussing the matter with your boss, the chief executive officer (CEO), he suggests that you have the power to make further adjustments to the statements, and that you should use that power to “adjust” the profits and equity into a stronger position, so that investor confidence in the company’s prospects will be restored. Write a short memo to the CEO, stating your intentions about what you can and/or will do to make the financial statements more appealing. Be specific about any planned adjustments that could be made, assuming that normal period-end adjustments have already been reflected accurately in the financial…

Company A's balance sheet and income statement for the fiscal year ending 2021 show the following: - Net Income: $15,000,000 - Total Assets: $75,000,000 - Total Revenue: $200,000,000 - Net Revenue: $50,000,000 You are the associate auditor on this client. Your senior auditor tells you that for Company A, 1.5% is the materiality judgement. Based on the appropriate benchmark identified in Question #1, determine the planning materiality. Show your work.   Your work should look like: BENCHMARK AMOUNT x MATERIALITY JUDGEMENT = PLANNING MATERIALITY