Income Tax (IAS12) Essay Example | Topics and Well Written Essays - 1500 words

Income Tax (IAS12) - Essay Example Their main agenda was to look at critical issues of accounting for corporate income in an attempt to develop a discussion paper on the principles of IAS 12 and set out proposals. IAS 12 prohibits companies to give an account to deferred taxes by using the deferral method based on the income statement. It instead prefers the passive methodology based on the balance sheet. In addition to the above requirement, the standard requires corporations to acknowledge either a deferral tax liability. Thirdly, IAS 12 requires recognition of deferred tax assets when it is certain that a corporation possess revenues in future to realize deferred tax asset. For instance, given that a company has a history of losses it will recognize deferred tax assets to the extent that taxable temporary expenses in amounts are sufficient. â€Å"Fourthly, IAS 12 does not allow asset credit and delayed tax liabilities brought about by types of material goods and liabilities whose books vary in amounts at the momen t of acknowledgment† (IAS - 12). The other requirement is that IAS 12 prohibits recognition of deferred tax liabilities, and those liabilities encountered or arising from adjustments for conversion so long as it satisfies two conditions: The main investor is capable of controlling the timing of reversal’s temporary difference. ... It however prohibits recognition of deferred tax liabilities because of initial recognition of good will. During revaluation of assets, IAS 12 allows and requires a corporation to recognize deferred tax liabilities in case revaluation of asset takes place. Moreover, IAS 12 requires that valuation of assets and deferred tax liabilities based on tax consequences that may arise in a manner that a company expects to recover the amount. â€Å"The standard also prohibits the deduction of deferred tax assets and liabilities to account for its current value† (Kirk, 2005). The IAS 12 further prohibits companies from making distinctions between the current and non-current assets and liabilities in its financial reports. It also provides restrictive conditions on debit and credit balances that represent deferred tax assets that could be compensated. This requirement is based on the requirements as stipulated by the financial assets and liabilities IAS 32, financial instruments disclosure and presentation. It is worth noting that among the new information IAS 12 requires disclosure include: That for every class of impermanent disparity; The amounts of assets and tax liabilities recognized and the amount of expenses or income labeled in the income statement with respect to discontinued operations, the realization of deferred tax asset depends on future prospects over the profits coming from reversals of existing impermanent parities. There has been a rise in criticism on financial reporting for income taxes from users and preparers. The criticism is based on the implication of the current and future effects it will have on cash flows. In their arguments, the users cite accounting requirements as too complex to apply in working out income tax. â€Å"In

Should schools require student uniforms Term Paper

Should schools require student uniforms - Term Paper Example In this regard, the aim of the current essay is to propose to the school administrators, parents and students that school uniforms should be prescribed. The discourse would initially present a brief review of literature from previous studies that delved into the subject. Subsequently, some statistical information would be provided to determine how many public or private schools in the United States prescribe wearing school uniforms. In addition, the effects of wearing school uniforms to students’ academic performance and to other variables would be determined and examined. Finally, a concluding portion would firmly establish support for one’s initial contention. Review of Related Literature In a study written by Gentile and Imberman, the authors examined the effects of wearing a prescribed school uniform on the behavior and academic performance of students in a large urban school district in the southwest portion (LUSD-SW) of the country. As disclosed, â€Å"uniforms g enerate improvements in attendance and test scores. These results are particularly strong for girls in middle and high school. We also find evidence that suggests behavioral problems shift towards less severe infractions for both genders in middle and high school. ... The author revealed that there are various benefits for enforcing school uniforms that include focusing on academic pursuits, fostering of a team-like spirit, and creating a more conducive school climate for learning, among others. Likewise, in another article written by Konheim-Kalkstein, the author contended that â€Å"when students dress alike, proponents say, the school climate may be improved† (Konheim-Kalkstein 25). The author likewise looked into other aspects and effects of using school uniform in terms of potentially reducing violence, improving the school climate, and saving money (Konheim-Kalkstein). Statistics on School Uniform Use In the statistics provided in the Statistic Brain website, it facts revealed that 23% of all private and public schools combined in the USA have a clearly defined school uniform policy (School Uniform Statistics). The information was noted to have been verified from the US Department of Education, NCES, ECS, NAESP, and University of Flor ida (School Uniform Statistics). Likewise, uniform sales were noted to have reached $1.1 billion in 2000 and an average annual cost of having the school uniform produced according to the prescribed design is $249 per annum (School Uniform Statistics). The city with the most percentage of schools adhering to a prescribed school uniform in public schools was disclosed as New Orleans (95%); while the city with the smallest percentage of users is Cincinnati at 50% (School Uniform Statistics). It is also interesting to note that from the reasons provided by parents and teachers regarding implementing the use of school uniforms, majority of parents (49%) indicated that â€Å"the school uniform has been financially beneficial for my household†