seriously the best ASR teacher ever. I failed ASR twice, this semester will be my third time taking it. I kept coming back to your lecture video to study, thank you for sharing! it really saves my life.
This is amazing, thank you! I can't believe this is taught in week 10 ! We're learning this in week 4 at our uni and it's painful. This was a total life saver!
Hi Emily, good question. In a way it does - say you have a piece of land that is on the books for $100,000 and is revalued to $150,000. Assuming away detail of transactions costs and also what gets included for CGT purposes, you expect to make a gain of $50,000 on selling the land. This gets picked up as: Dr Land 50,000 Cr Surplus 35,000 Cr DTL 15,000 To represent the additional that would need to be paid. It is important to note that AASB 112 is based on an international standard and doesn't deal specifically with individual tax legislation from different countries. I'm thinking here of say the CGT discount in Australia as an example. I'll be honest, this is going somewhat beyond my level of knowledge of the interplay between tax accounting and financial reporting, but I'd imagine if you have a $15,000 liability on the books but then having held it for more than a year, that liability would be reduced, then you'd need to adjust the DTL amount. Hope that helps
In terms of the journal entries. Is it recorded at 30 June in the year related to the tax year. Or in the year when the tax return is lodged because usually who a company prepares their tax return after 30 June.
Hi Tyson, good question. It would be part of the process to prepare the annual accounts for that particular year, which would take place after the financial year end. For example, if you only had to recognise a DTL in relation to a depreciable asset, the tax entry for this would be related to the adjusting entry for the depreciation for the asset. Hope that helps.
@@tysont2380 No problems. Yes - although depending on the organisation you may see slightly different journal names (i.e. current tax liability, or current income tax liability).
Can I ask which uni you are from? This is so helpful. Thank you. I am starting a job at the tax office, but I never studied taxation law and am quite worried. Thank you so much. Your lectures are really clear.
Life saver ! I asked the law school of the local university where I had studied in Adelaide if I might sit just sneak in and sit up the back of the lecture theatre, but it would have cost me nearly a thousand dollars up front for the privilege - money you dont have unless you are working. Thank you once again. Really enjoyed your listening to your lecture by the way - you are really good at it. Wished I could have been there.
A thousand dollars - that's a bit rough. Thanks for the compliment, especially given it's an accounting lecture on tax. Two subject areas most people run a mile from.
I am sure I would have loved this video, but I stopped 2 minutes in. Description should say this is pertaining to Aussie Accounting Standards (AASB). Take care mate! PS, guys this is not boring once you find yourself behind the wheel. ;-)
seriously the best ASR teacher ever. I failed ASR twice, this semester will be my third time taking it. I kept coming back to your lecture video to study, thank you for sharing! it really saves my life.
You're more than welcome - and all the best for ASR this semester! I definitely miss teaching it.
This is amazing, thank you! I can't believe this is taught in week 10 ! We're learning this in week 4 at our uni and it's painful. This was a total life saver!
yeah - this guy is good !
Honestly so clear and concise. Saving me with the FIN module!
Thanks Deepak
Thanks Dave. Why is CGT not part of AASB 112 when the capital gain will be included in taxable profit?
Hi Emily, good question. In a way it does - say you have a piece of land that is on the books for $100,000 and is revalued to $150,000. Assuming away detail of transactions costs and also what gets included for CGT purposes, you expect to make a gain of $50,000 on selling the land.
This gets picked up as:
Dr Land 50,000
Cr Surplus 35,000
Cr DTL 15,000
To represent the additional that would need to be paid.
It is important to note that AASB 112 is based on an international standard and doesn't deal specifically with individual tax legislation from different countries. I'm thinking here of say the CGT discount in Australia as an example. I'll be honest, this is going somewhat beyond my level of knowledge of the interplay between tax accounting and financial reporting, but I'd imagine if you have a $15,000 liability on the books but then having held it for more than a year, that liability would be reduced, then you'd need to adjust the DTL amount.
Hope that helps
In terms of the journal entries. Is it recorded at 30 June in the year related to the tax year. Or in the year when the tax return is lodged because usually who a company prepares their tax return after 30 June.
Hi Tyson, good question. It would be part of the process to prepare the annual accounts for that particular year, which would take place after the financial year end. For example, if you only had to recognise a DTL in relation to a depreciable asset, the tax entry for this would be related to the adjusting entry for the depreciation for the asset. Hope that helps.
@@drdavebond thanks. Also in terms of recording the current tax payable is it normally Dr income tax expense cr income tax liability
@@tysont2380 No problems. Yes - although depending on the organisation you may see slightly different journal names (i.e. current tax liability, or current income tax liability).
OMG why I didn’t study at UTS! You and Amanda are just so amazing in teaching.
Glad we could help Luke - I hope you're degree went well.
Can I ask which uni you are from? This is so helpful. Thank you. I am starting a job at the tax office, but I never studied taxation law and am quite worried. Thank you so much. Your lectures are really clear.
Hi Helena, I'm from UTS. Glad I could help out with the video. Hope the job goes well, I'm sure you'll be fine.
University of Technology - Sydney. I'll check it out next time I'm in town.
Helena Hayes g
Thankyou for explaining it so nicely !!
I couldn’t understand what my teacher was saying, she was really mean :(
Glad I could help Lila :)
There is only lecture 10 an 11. Any chance of posting the other lectures? I have just subscribed.
Hi Helena - the playlist for all the lectures for that particular semester is here: ua-cam.com/play/PLJasGkrJ0EXdOZfAEmam8OfpBqAqfJI1o.html
Life saver ! I asked the law school of the local university where I had studied in Adelaide if I might sit just sneak in and sit up the back of the lecture theatre, but it would have cost me nearly a thousand dollars up front for the privilege - money you dont have unless you are working. Thank you once again. Really enjoyed your listening to your lecture by the way - you are really good at it. Wished I could have been there.
A thousand dollars - that's a bit rough. Thanks for the compliment, especially given it's an accounting lecture on tax. Two subject areas most people run a mile from.
Also how will Payg instalments impact the journal entries
This really helped my understanding thank you!
Glad it was helpful Sameer
I am sure I would have loved this video, but I stopped 2 minutes in. Description should say this is pertaining to Aussie Accounting Standards (AASB). Take care mate! PS, guys this is not boring once you find yourself behind the wheel. ;-)
That's fair enough, thanks for the comment, and something I'll look to update
27:27
This is a very boring and confusing lecture
I'm sorry you found that the case. I'll have to work on it.
I found this amazingly good.