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Corporate Accounting

Assignment Requirements
 
There will be two questions need to be answerd. Maximum 300 words for each question. the first one is
Refer to the attached extracts from the Wannon Water 2012/2013 Annual Report:
– Comprehensive Operating Statement
– Balance Sheet
– Note 5: Income Tax
Required:
What recognition criteria for deferred tax liabilities and assets must Wannon Water meet in order to recognise the net deferred tax liability of $36.879 million in its accounts?
The Second one is
Under current accounting standards revaluation increments on Plant and property equipment assets are credited to a revaluation surplus account in equity, whereas a revaluation decrement may be recognised as an expense under certain circumstances.
Required:
Explain and critically evaluate these requirements.
Please be remind that all the answer should base on Australian Accounting principles without using any other countries. And for the First question, Please refer to AASB 112 paragraph 57.
 
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