TAX CHARGE IN THE STATEMENT OF PROFIT OR LOSS OF A COMPANY

The tax charge in the Statement of Profit or Loss of a company often bears little resemblance.
to the profit before tax figure multiplied by the tax rate
FI6111:Research Methods in Finance, 1 Autumn 2015
Assignment Submission: 5 p.m.Friday, November 20, 2015 (end of Week 11)
The tax charge in the Statement of Profit or Loss of a company often bears little resemblance.
to the profit before tax figure multiplied by the tax rate. This is because there is a difference.
in the computation of accounting profits and taxable profits. Therefore, company financial
Statements usually report an “effective” tax rate, which is calculated by dividing the taxation.
by the profit before tax figure (see example below).
In your assigned groups 1
submit a report, using information from the most recent financial
returns for 100 companies of your choice, indicating the effective tax rate. Your report should
highlight some differences across the companies and the reasons for these differences. Your
analysis may consider (but is not restricted to) company size, sector, or location. (Please
(Include workings in the appendix.)
_______________________________________________________________________
A good report will justify the use of the data, the choice of companies, and present relevant
table(s) and graph(s).
The objective of this project is:
to communicate effectively and clearly in a written format using a quantitative
and qualitative approach; and
to demonstrate your ability to identify, analyze, and present data.
To get a good grade, you will need to demonstrate a good level of competency in the
analysis, interpretation, and presentation of financial data
? You will need to use tables and graphs to illustrate your points.
All sources must be referenced and may be checked on Turnitin.
? Use ULs Cite it right for referencing details.

This assignment requires you to access data, which is essential. Annual reports, Bloomberg, DataStream, CSO, Eurostat, FAME, Kompass, TaxFind, and FED are a few examples of useful sources.
The total word count for the written report should range from 1,500 to 2,000 words (1.5 line spacing, Times New Roman font). Each table and graph needs to have a heading, a source, and a sequential numbering system.
Please place a hard copy in the Level 3 KBS box designated for FI6111 Research Methods in Finance. Include each group member’s name and student number on the title page of your report.
If assignments are sent in beyond the due date, students will be penalized 10% per day. The task accounts for 25% of the module grade.

1
Groups are listed in the PDF file.
2 pages total
Please staple your report’s top left corner; do not use binding, folders, etc.
There is no need to print in color.
You won’t see expenses split down like in the example below in a company’s accounting records. These costs will show up as “operating expenses.”
Business Accounts
Financial Statements for Company A: Sales 1,074,000
395,000 in sales expenses
Gross income of $679,00
R&D grants from other sources 10,000
Discounts gotten: 4,000, 14,000, 693,000
operational costs
wages of 120,000
Insurance costs total $30,000. Depreciation costs total $25,000.
Other 400,000 577,000
Before-tax income of 116,000, taxes of 16,625
132,625 in profit after taxes
Note 1: 116,000, 12.50%, 14,500
Actual tax rate: 16.625
116,000 14.33%
Note 2: Revenue Approach: € Accounting Profit: 116,000 Depreciation: 25,000 Entertainment expenses: 2,000 Taxable profit: 133,000 Less R&D grant: $10,000
Tax liability: 12.50%, 16,625