Explain how this error would be corrected, if at all, in accordance with AASB 108 ‘Accounting Policies, Changes in Accounting Estimates and Errors’.

On 30 June 2018, an error was discovered in the calculation of Cootha Ltd’s liability for

 

sick leave for the year ended 30 June 2017 in accordance with AASB 119 ‘Employee

Benefits’. In particular, the sick leave liability of $33 000 for the packaging division had

been omitted from the sick leave liability for the entire organisation. The total liabilities at

30 June 2017 were $260 000. The annual end of the reporting period for Cootha Ltd is 30

June and the financial statements were authorised for issue on 22 September 2018. A tax

rate of 30% has been applicable to Cootha Ltd since 2008.

(a) Explain how this error would be corrected, if at all, in accordance with AASB 108

Accounting Policies, Changes in Accounting Estimates and Errors’.

(b) Would your answer to (a) change if information became available on 25 September

2018 of a severe bird flu outbreak during the 2017–2018 reporting period that

significantly affected Cootha Ltd’s workforce?

 

find the cost of your paper

Determine the trust’s Net Income For Tax Purposes and Taxable Income for the current year.

During the current year, the Jordan family trust, an inter vivos trust, has business income of $220,000. Of this amount, $50,000 is retained in the trust with a joint election….

Indicate the tax effects of these transactions on the Net Income For Tax Purposes for both the trust and for Bryan.

During 2020, the Ho family trust received eligible dividends from publicly traded Canadian corporations in the amount of $100,000. In addition, it received non-eligible dividends from the family owned Canadian….

compare the tax consequences for both Martin and the trust if the sale takes place in December 2020

The Husak family trust has only one beneficiary, Martin Husak, the 32 year old son of the settlor, Dimitri Husak. It is an inter vivos trust and its only asset….