Advance Accounting

toAASB 101 para 51 a, b c, the name of company, date of reporting and whether it is an individual entity or group entities are necessary details for those financial statements.Mentee has written the correct amount for the Interest Revenue. Interest on this investment is paid annually (31December 2013), the reporting date is 30th June 2013. For accounting purposes, only $14,000 ($28,000/2) should be recognized as revenue as at 30th June 2013. However, for tax purposes only what is paid is an allowable deduction. That means there is no tax deduction on June 30. We need to deduct accounting revenue of $ 14,000 and add back zero.Vehicle depreciation 4 years s/line no residual value so $60,000/4=$15,000 for accounting. For tax is 20% of $60,000= $12,000 accounting 20% tax. Vehicle was purchased on 1 July 2011, so it was still being depreciated for both tax and accounting purposes.Machinery depreciation for 10 years s/line residual value of $10,000 so ($210,000-10,000)/10=$20,000 to be accounted for. For tax is 20% of $210,000=$42,000 accounting 20% tax. Machinery purchased on 1 July 2007 so it is still being depreciated for accounting purposes but not tax purposes.Therefore, tax depreciation has already depreciated full cost such that there is no further deductions for this period. However, $15,000 of machinery seems wrong.The annual leave expense is an expense and a liability and needed to be reversed under accounting treatment. Mentee wrote the correct amount. Under the taxation treatment, the annual leave expense should be deducted once the annual leave expenses are paid. The information given is that the annual leave paid in the period $14,000. Thus, it should be deducted under taxation treatment.The goodwill is recognised as an impairment loss. This would be reversed under the accounting treatment. Mentee did not add goodwill amount under the accounting treatment. However, it would be not be deductible under taxation treatment.According to AASB