There was no acquisition of plant and equipment during the year. The tax rate as at 30 June 2018 and 30 June 2019 was 30 per cent Required:
a) Calculate the amount of each of Should Be My Own Work Ltd.'s temporary differences, if any, at 30 June 2018, and state whether it is deductible or taxable
b) What is the balance of the deferred tax liability and deferred tax asset, if any, as at 30 June 2018?
c) Calculate Should Be My Own Work Ltd.’s taxable income for the year ending 30 June 2019.
d) Prepare journal entries to record current tax and deferred tax for the year ending 30 June 2019.
Question 2: (Marks 10)
In accounting for employee benefits wherein under their contract with employers, employees can receive various forms of benefits in return for their services. Such benefits will usually result to recognition of expenses by the employer, and if not paid as at the end of the reporting period, becomes liabilities from the perspective of the employer. If the services of the employees are used to generate items that are expected to provide future economic benefits -- for example, employees generate Inventories in the form of WIP (work in progress) -- then amounts paid or payable to employees may be considered to be part of the cost of the respective assets.
Aside from the above-mentioned Inventories, illustrate or describe other scenarios you can think of when would payments made to employees can be considered to be an Asset? Provide possible journal entries, if needed. Maximum 200 words.