Global Conference Business Finance Proceed -Myassignmenthelp.Com

Question: Discuss About The Global Conference Business Finance Proceed? Answer: Introducation Analysis of annual report of GDI property group stabled depicts that equity comprise of some of items such as contributed equity, retained profits and reserves. Equity of the group is divided into equity attributable to equity holders of the company, equity attributable to trust unit holders and equity attributable to external non controlling interests. The value of contributed equity attributed to equity holders as depicted from the balance sheet stood at$ 22264000, value of reserve stood at $ 125000 and value of retained profits stood at $ 3332000 for the financial year 2017. Contributed equity is one of the items in the section of shareholders equity in the statement of financial position. It represents the total stock value that is purchased by shareholders directly from company that is issuing shares. Contributed equity is the paid in capital that is given by shareholders in terms of amount of cash or assets in exchange for stock (Camfferman and Zeff 2015). Reserves are one of the parts of business profits that have been kept aside for strengthening the financial position of entities. It is the liabilities that are attributable to business and are used for repaying debts, purchasing fixed assets, dividend repayments, bonuses and expansion of funds. Capital reserves and revenue reserves are the two types of reserves that are used by business. Revenue reverses are that portion of profits that is generated by the operations of company and capital reserve on the other hand is generated from profits that arise from sources that are other than trading activities (Arnold et al. 2015). Retained profits are than profits that are reinvested by organization into business and they are not paid or distributed to shareholders by way of dividend (Roy 2015). It is regarded as one of the significant long-term sources of finance for running the business. Total amount of tax expenses and benefit attributable to GDI property group stapled is recorded in the consolidated statement of profit and loss and other comprehensive income. Group recorded income tax benefit of amount $ 345000 in financial year 2017 and income tax expense of $ 248000 in financial year 2016 respectively. The accounting income of group for the financial year 2017 and 2016 stood at $ 106970 million and $ 47949 million. Effective tax rate that is employed the group stood at 27.5%. Therefore, the value of accounting income times taxation rate for both the years stood at (27.5%. * $ 106970= $ 29416.75) and (27.5%. * $ 47949= $ 13185.97). On other hand, income tax benefit and expenses stood at $ 345000 and ($ 248000) for year 2017 and 2016 respectively. It can be seen from the computation of figures that there is considerable difference between the amount of tax expenses recorded and the accounting income of company times the taxation rate. This difference is amount is attributable to the fact that the accounting treatment for computing income tax is different from the accounting treatment used for computing accounting income of the group. The amount of deferred tax assets have been recorded in the section of noncurrent assets of the consolidated statement of financial position. Deferred tax amount for the financial year 2017 and 2016 stood at $ 1258 million and $ 913 million respectively. Recording of deferred tax assets is done because of recognition of unused tax losses and temporary differences and this is done to the extent that probable future taxable profits is available against which the utilization of deferred tax assets is done (Agrawal and Cooper 2017). GDI property group stapled has not recorded any income tax payable in both the financial year that is 2017 and 2016 respectively. GDI property group has not recorded any amount of any income tax paid in financial year 2017 because organization has received income tax benefits rather than incurring income tax expenses. Therefore, the difference between income tax expense and income tax payable cannot be ascertained. From the analysis and evaluation of annual report of GDI property group stabled, it has been ascertained that the group has not paid any income tax in the current year, rather they have benefitted from taxation. Treatment of tax under in the financial statement of organization has been found to be interesting and surprising as the trust is not liable to pay tax under the current income tax legislation. Capital gains that are realized through taxation is distributed to the unit holders. This particular financial report of organization does not take into account liabilities that are arising from capital gains tax that arises from selling of properties. Total amount of income tax benefits or expense consists of deferred tax expense or income and current income expense or benefit (Schaltegger et al. 2017). There is not recognition of deferred income tax for the assets and liabilities that are recognized from the initial recognition except for business combination. Tax consolidated groups have been formed by the company and its wholly owned subsidiaries and therefore they are taxed as single entity with effective from 16th December, 2016. Organization has employed an approach of separate tax payer within the group that helps in recognition of deferred tax liabilities, deferred tax assets and current income tax income and expenses in the separate financial statements. This recognition using the mentioned approach is done by making reference to carrying amount of liabilities and assets and considering the applicable tax values under tax consolidation (Reeve et al. 2014). Moreover, the extent and amount of deferred tax assets that are arising from tax losses that are unused in the tax consolidated group is determined by the probability that there will be availability of future taxable against which the utilization of assets are done. The obligations of funding of tax consolidated group members in regard to taxation amount is done by the Group by e ntered into an arrangement concerning funding of taxation in association with other members of tax consolidated group. Allocation of liabilities concerning income taxation is determined by the agreement of tax sharing and it is done when company has done any default in meeting taxation obligations (Di Pietr et al. 2015). With regard to the agreement concerning taxation, there has not been any recognition of amounts in the financial statements and the reason is attributable to the fact that any sort of payment of amounts under tax agreement consideration is regarded as remote by the group. References list: Agrawal, A. and Cooper, T., 2017. Corporate governance consequences of accounting scandals: Evidence from top management, CFO and auditor turnover. Quarterly Journal of Finance, 7(01), p.1650014. Arnold, L.W., Harris, P. and Liu, M., 2015, July. CORPORATE ACCOUNTING MALFEASANCE: AN OVERVIEW. In Global Conference on Business Finance Proceedings (Vol. 10, No. 2, p. 58). Institute for Business Finance Research. Camfferman, K. and Zeff, S.A., 2015. Aiming for global accounting standards: the International Accounting Standards Board, 2001-2011. Oxford University Press, USA. Di Pietr, A., Art, S. and Ronen, J., 2015. Accounting and regulation. Springer,. Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial accounting. Pearson Higher Education AU. Reeve, J.M., Warren, C.S. and Duchac, J.E., 2014. Corporate financial accounting. South-Western Cengage Learning. Roy, M.N., 2015. Statutory Auditors' Independence in the Context of Corporate Accounting Scandal: A Comparative Study of Enron and Satyam. IUP Journal of Accounting Research Audit Practices, 14(2), p.7. Schaltegger, S., Etxeberria, I.. and Ortas, E., 2017. Innovating Corporate Accounting and Reporting for SustainabilityAttributes and Challenges. Sustainable Development, 25(2), pp.113-122. Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.