Corporate Financial Reporting & Analysis
ACCT2542
Corporate Financial Reporting & Analysis
Semester 2 – 2009
Version 1.0.3
Contents
Page 3
Accounting for Income Tax
Page 7
Consolidation Accounting – Principles
Page 10
Consolidation Accounting – Wholly Owned Subsidiaries
Page 15
Consolidation Accounting – Intragroup Transactions
Page 19
Consolidation Accounting – Minority Interests
Page 24
Consolidation Accounting – Indirect Ownership
Page 26
Accounting for Asso
Associates – The Equity Method
Page 30
Accounting for Interests in Joint Ventures
Page 33
Introduction to Corporate Financial Reporting
Page 36
Presentation of Financial Statements
Page 40
Earnings Per Share
Page 44
Principals of Disclosure
Copyright © Ka Hei Yeh 2009
First Edition published October 2009. (Revised February 2010)
This work is licensed under the Creative Commons Attribution
Attribution-Non-CommercialNo Derivative Works 2.5 Australia Licence To view a copy of this license, visit
Licence.
http://creativecommons.org/licenses/by-nc-nd/2.5/au/ or send a letter to Creative http://creativecommons.org/licenses/by nd/2.5/au/
Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Disclaimer: The author does not guarantee the accuracy of the notes available and will not be h liable for held any damages (including lost marks etc.) as a result of the use of these notes. Use at your own discretion with etc.) caution. Do not rely on them; these notes are not intended to serve as a replacement for your own.
Corporate Financial Reporting & Analysis – Semester 2 2009 g 2
Accounting for Income Tax
Accounting for Income Tax
Background
Accounting for income tax is not as easy as it seems. A business’s accounting profit is rarely ever the same as its tax profit (or taxable income). This is because they are determined using different rules. As such, methods must be used to find out a business’s tax profit based on its
Corporate Financial Reporting & Analysis
Semester 2 – 2009
Version 1.0.3
Contents
Page 3
Accounting for Income Tax
Page 7
Consolidation Accounting – Principles
Page 10
Consolidation Accounting – Wholly Owned Subsidiaries
Page 15
Consolidation Accounting – Intragroup Transactions
Page 19
Consolidation Accounting – Minority Interests
Page 24
Consolidation Accounting – Indirect Ownership
Page 26
Accounting for Asso
Associates – The Equity Method
Page 30
Accounting for Interests in Joint Ventures
Page 33
Introduction to Corporate Financial Reporting
Page 36
Presentation of Financial Statements
Page 40
Earnings Per Share
Page 44
Principals of Disclosure
Copyright © Ka Hei Yeh 2009
First Edition published October 2009. (Revised February 2010)
This work is licensed under the Creative Commons Attribution
Attribution-Non-CommercialNo Derivative Works 2.5 Australia Licence To view a copy of this license, visit
Licence.
http://creativecommons.org/licenses/by-nc-nd/2.5/au/ or send a letter to Creative http://creativecommons.org/licenses/by nd/2.5/au/
Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Disclaimer: The author does not guarantee the accuracy of the notes available and will not be h liable for held any damages (including lost marks etc.) as a result of the use of these notes. Use at your own discretion with etc.) caution. Do not rely on them; these notes are not intended to serve as a replacement for your own.
Corporate Financial Reporting & Analysis – Semester 2 2009 g 2
Accounting for Income Tax
Accounting for Income Tax
Background
Accounting for income tax is not as easy as it seems. A business’s accounting profit is rarely ever the same as its tax profit (or taxable income). This is because they are determined using different rules. As such, methods must be used to find out a business’s tax profit based on its