The paper "Oil Search Limited - Audit Information" is a perfect example of a business case study. Some of the new standards that were adopted by the company in the financial year ended 2013 include; IFRS 10, 11, 12 and 13 as well such amendments as IAS 27 that deals in separate financial statements, 28; investments in associates and joint ventures, 19; employee benefits, 7; financial instruments pertaining the disclosures on asset and liability offsetting, 1; presentation of items other comprehensive income. Due to the significant change to IFRS 11, the company has seen its accounting policies altered.
In the new accounting standard settings, investments in the joint arrangement are categorized as either being joint operations or ventures. This largely depends on the contractual rights and obligations that each and every existing investor enjoys for that matter. Significantly, using the aforementioned alterations, the firm has been able to analyze the immediate nature of its joint’ s arrangements and thereby determined that they are comprised of investments set in joint operations. The company’ s property, plant and equipment are recognized in regards to their immediate cost less their underlying accumulated depreciation and impairment values.
For the case of either a gain or loss in the course of asset disposal, this value is established between their immediate carrying value of the asset at the exact time of disposal and the resultant disposal proceeds, which is later included within the results of the group within the underlying year of the disposal (Oil Search Limited, 2013,p. 94). The underlying amount of income tax expensed by the company stands at $174,148,000 while the amount of income tax paid within the same financial year, which ends in 2013, is stated at $149,836,000 (Oil Search Limited, 2013).
It should be understood that the current underlying taxes payable are focused on the overall taxable profit for the entire operational year. A provision is formulated in order to provide clear guidelines on the differences that exist between taxable profits and net profits. The group’ s liability or asset base that is subjected under the current tax provisions is computed using given tax rates that have been formulated or thereby enacted for the period covering the reporting date.
Notwithstanding, the company’ s deferred taxes are accounted for using the balance sheet liability approach. This is to say that deferred tax liabilities are recognized for entire taxable temporary differences. It is further noted that both the deferred tax assets and liabilities are measured at their respective tax rates that are expected to be applicable in the period for which the asset is realized or in the other scenario when the liability is fully settled.
Oil Search Limited. 2013. Annual report. Retrieved on May 28, 2014 from http://www.oilsearch.com/Investor-Centre/ASX-Releases/Annual-Reports.html,