{
  "id": "competency:mcom-accounting--tax",
  "code": "CDU-BUS-ACTX-900",
  "level": "MM",
  "name": "MCom Accounting & Tax",
  "faculty": "Faculty of Commerce, Law and Management",
  "lineage": [
    {
      "institution": "Conquest Designer University",
      "year": 2026,
      "note": "authored from the brief and the IFAC/SAICA technical-competence standards; no prior institution is claimed"
    }
  ],
  "researchProject": "Deferred tax, leases and the arm’s length range: the measurements behind a reconciled tax charge",
  "description": "The measurements a reporting accountant and a tax adviser must get right: deferred tax on temporary differences (IAS 12), the reconciliation of the tax charge to the statutory rate, the lease liability and right-of-use asset (IFRS 16), and the arm’s length range for a related-party margin (OECD Transfer Pricing Guidelines).",
  "syllabus": [
    "Income taxes: carrying amount, tax base, temporary differences, deferred tax assets and liabilities (IAS 12)",
    "The tax charge: taxable income, current tax and the effective-rate reconciliation (IAS 12 ¶81(c))",
    "Leases: the lease liability at the present value of unpaid payments, the right-of-use asset, interest (IFRS 16)",
    "Transfer pricing: comparables, the interquartile range and adjustment to the median (OECD TPG ch. III)"
  ],
  "reference": {
    "Temporary difference": "carrying amount − tax base (IAS 12 ¶5)",
    "Deferred tax": "temporary difference × the rate expected to apply, enacted or substantively enacted (IAS 12 ¶47)",
    "Lease liability": "PV of lease payments not paid at commencement, at the rate implicit in the lease or the incremental borrowing rate (IFRS 16 ¶26)",
    "Right-of-use asset": "lease liability + payments made at or before commencement + initial direct costs (IFRS 16 ¶24)",
    "Arm’s length range": "interquartile range of comparable results; outside it, adjust to a point in it such as the median (OECD TPG ¶3.57, ¶3.60–3.62)"
  },
  "role": "You are a chartered accountant and tax adviser explaining a measurement to a finance director. State the standard and the paragraph, show the numbers, then say what the entry or the adjustment is and what judgement could change it.",
  "feeUsd": 1,
  "version": "1.0.0",
  "qualification": {
    "award": "MCom",
    "nqfLevel": 9,
    "qualificationType": "Master's Degree (HEQSF qualification type 9a)",
    "totalCredits": 180,
    "minCreditsAtExitLevel": 120,
    "iscedFields": [
      "041"
    ],
    "standards": [
      "IFAC International Education Standards — IES 2 (Revised), Initial Professional Development: Technical Competence",
      "SAICA CA2025 Competency Framework",
      "IFRS Accounting Standards — IAS 12 Income Taxes; IFRS 16 Leases",
      "OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (2022)"
    ],
    "registration": "not registered"
  },
  "modules": [
    {
      "code": "CDU-BUS-ACTX-900-901",
      "title": "Coursework — the executable units",
      "nqfLevel": 9,
      "credits": 60,
      "prerequisites": [],
      "coRequisites": [],
      "outcomes": [
        "answer every unit of the qualification against its published reference, with the working shown"
      ],
      "assessment": {
        "formative": [
          "worked examples re-run against the published reference",
          "seeded practice scenarios, deterministic per (pan, unit, attempt)"
        ],
        "summative": "every unit passed once through the seeded assessment (the seeded assessment room)",
        "passMark": 50,
        "subminimum": 40,
        "moderation": "internally assessed by the unit itself — its reference implementation is the marker; the working is published so anyone can re-run the mark (D-13.1 — no model marks anything)"
      },
      "unitIds": [
        "deferred_tax",
        "tax_rate_reconciliation",
        "lease_liability",
        "arms_length_range"
      ],
      "notionalHours": 600
    },
    {
      "code": "CDU-BUS-ACTX-900-902",
      "title": "Research report",
      "nqfLevel": 9,
      "credits": 120,
      "prerequisites": [
        "CDU-BUS-ACTX-900-901"
      ],
      "coRequisites": [],
      "outcomes": [
        "Deferred tax, leases and the arm’s length range: the measurements behind a reconciled tax charge"
      ],
      "assessment": {
        "formative": [
          "worked examples re-run against the published reference",
          "seeded practice scenarios, deterministic per (pan, unit, attempt)"
        ],
        "summative": "the research report, assessed against the qualification’s published reference block",
        "passMark": 50,
        "subminimum": 40,
        "moderation": "internally assessed by the unit itself — its reference implementation is the marker; the working is published so anyone can re-run the mark (D-13.1 — no model marks anything)"
      },
      "unitIds": [],
      "notionalHours": 1200
    }
  ],
  "units": [
    {
      "id": "deferred_tax",
      "name": "Deferred tax on a temporary difference",
      "answers": "Does this asset or liability give rise to a deferred tax liability or asset, and how large is it?",
      "example": {
        "itemKind": "asset",
        "carryingAmount": 100000,
        "taxBase": 60000,
        "taxRate": 0.27
      },
      "reference": "IAS 12 Income Taxes ¶5 (temporary difference), ¶15 (taxable → DTL), ¶24 (deductible → DTA, if probable taxable profit), ¶47 (rate)",
      "signature": {
        "input": {
          "itemKind": {
            "type": "string",
            "describe": "Is the item an asset or a liability?",
            "oneOf": [
              "asset",
              "liability"
            ]
          },
          "carryingAmount": {
            "type": "number",
            "describe": "Carrying amount in the statement of financial position",
            "min": 0
          },
          "taxBase": {
            "type": "number",
            "describe": "The amount attributed to the item for tax purposes",
            "min": 0
          },
          "taxRate": {
            "type": "number",
            "describe": "Rate expected to apply when it reverses, 0–1",
            "min": 0,
            "max": 1
          }
        },
        "output": {
          "temporaryDifference": {
            "type": "number",
            "describe": "|carrying amount − tax base|"
          },
          "differenceType": {
            "type": "string",
            "describe": "taxable, deductible or none"
          },
          "deferredTax": {
            "type": "number",
            "describe": "Temporary difference × rate"
          },
          "position": {
            "type": "string",
            "describe": "DTL, DTA or none"
          }
        }
      }
    },
    {
      "id": "tax_rate_reconciliation",
      "name": "Current tax and the effective-rate reconciliation",
      "answers": "What is the current tax charge, and why does the effective rate differ from the statutory rate?",
      "example": {
        "accountingProfit": 1000000,
        "statutoryRate": 0.27,
        "nonDeductibleExpenses": 50000,
        "exemptIncome": 20000
      },
      "reference": "IAS 12 ¶81(c): explanation of the relationship between tax expense and accounting profit, as a reconciliation at the applicable tax rate",
      "signature": {
        "input": {
          "accountingProfit": {
            "type": "number",
            "describe": "Profit before tax",
            "min": 0.01
          },
          "statutoryRate": {
            "type": "number",
            "describe": "Applicable (statutory) tax rate, 0–1",
            "min": 0,
            "max": 1
          },
          "nonDeductibleExpenses": {
            "type": "number",
            "describe": "Expenses that are never deductible",
            "min": 0,
            "default": 0
          },
          "exemptIncome": {
            "type": "number",
            "describe": "Income that is never taxable",
            "min": 0,
            "default": 0
          }
        },
        "output": {
          "taxableIncome": {
            "type": "number",
            "describe": "Profit + non-deductible − exempt"
          },
          "taxAtStatutoryRate": {
            "type": "number",
            "describe": "Profit × statutory rate"
          },
          "effectNonDeductible": {
            "type": "number",
            "describe": "Non-deductible × rate"
          },
          "effectExempt": {
            "type": "number",
            "describe": "Exempt × rate (a reduction)"
          },
          "currentTax": {
            "type": "number",
            "describe": "Taxable income × rate, not below zero"
          },
          "effectiveTaxRate": {
            "type": "number",
            "describe": "Current tax ÷ profit"
          }
        }
      }
    },
    {
      "id": "lease_liability",
      "name": "Lease liability and right-of-use asset",
      "answers": "At commencement, what is the lease liability, the right-of-use asset, and the first period’s interest?",
      "example": {
        "periodicPayment": 100000,
        "periods": 5,
        "ratePerPeriod": 0.1,
        "initialDirectCosts": 5000,
        "paymentsInAdvance": false
      },
      "reference": "IFRS 16 Leases ¶26 (liability = PV of payments not paid at commencement), ¶24 (right-of-use asset), ¶36 (interest on the liability)",
      "signature": {
        "input": {
          "periodicPayment": {
            "type": "number",
            "describe": "Fixed lease payment per period",
            "min": 0.01
          },
          "periods": {
            "type": "number",
            "describe": "Number of payments over the lease term",
            "min": 1,
            "max": 600
          },
          "ratePerPeriod": {
            "type": "number",
            "describe": "Discount rate per period (implicit or incremental borrowing), 0–1",
            "min": 0,
            "max": 1
          },
          "initialDirectCosts": {
            "type": "number",
            "describe": "Initial direct costs of the lessee",
            "min": 0,
            "default": 0
          },
          "paymentsInAdvance": {
            "type": "boolean",
            "describe": "Paid at the start of each period (true) or the end (false)",
            "default": false
          }
        },
        "output": {
          "annuityFactor": {
            "type": "number",
            "describe": "PV factor applied to the unpaid payments"
          },
          "leaseLiability": {
            "type": "number",
            "describe": "Lease liability at commencement"
          },
          "rightOfUseAsset": {
            "type": "number",
            "describe": "Right-of-use asset at commencement"
          },
          "firstPeriodInterest": {
            "type": "number",
            "describe": "Liability × rate for the first period"
          },
          "liabilityAfterFirstPeriod": {
            "type": "number",
            "describe": "Liability + interest − the payment at the end of period 1"
          }
        }
      }
    },
    {
      "id": "arms_length_range",
      "name": "Arm’s length range and adjustment",
      "answers": "Is the tested party’s margin inside the interquartile range of the comparables, and if not, what adjustment brings it to the median?",
      "example": {
        "comparableMargins": [
          0.042,
          0.051,
          0.055,
          0.063,
          0.07,
          0.078,
          0.085,
          0.091
        ],
        "testedMargin": 0.035
      },
      "reference": "OECD Transfer Pricing Guidelines (2022) ¶3.57 (interquartile range), ¶3.60–3.62 (outside the range: adjust to a point in it, e.g. the median); quartiles by linear interpolation (type 7)",
      "signature": {
        "input": {
          "comparableMargins": {
            "type": "number[]",
            "describe": "Profit level indicator of each accepted comparable (e.g. net cost plus), as fractions"
          },
          "testedMargin": {
            "type": "number",
            "describe": "The tested party’s result on the same indicator, as a fraction",
            "min": -1,
            "max": 1
          }
        },
        "output": {
          "lowerQuartile": {
            "type": "number",
            "describe": "Q1 of the comparables"
          },
          "median": {
            "type": "number",
            "describe": "Median of the comparables"
          },
          "upperQuartile": {
            "type": "number",
            "describe": "Q3 of the comparables"
          },
          "withinRange": {
            "type": "boolean",
            "describe": "Q1 ≤ tested ≤ Q3"
          },
          "adjustedMargin": {
            "type": "number",
            "describe": "Tested if within range, otherwise the median"
          },
          "adjustment": {
            "type": "number",
            "describe": "Adjusted − tested"
          }
        }
      }
    }
  ]
}