ACCT3202 Final: Corporate Accounting Exam/Unit study
Document Summary
Accounting exam study: financing company operations, accounting for income tax, property plant and equipment, liquidation of companies, business combinations, equity accounting. Tax losses are created when allowable deductions exceed assessable income: the tax act allows losses to be carried forward and used as a deduction against future taxable income, tax losses provide future deductions and subject to recognition criteria create deferred tax assets, exempt income cannot contribute to carry forward losses, if the prima facie tax loss is ,000 but there is exempt income of ,000 the allowable carry forward loss would be ,000. Transfers may be made from the ars in the following circumstances: when a revalued asset is derecognized the balance in the ars may be transferred to re, when a revalued asset is being depreciated the ars may be progressively transferred to retained earnings over the useful life of the asset, bonus share issues may be made from the ars.
