Difference between an associate and a subsidiary
Course:- Managerial Accounting
Reference No.:- EM13490654

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Managerial Accounting

Part A:

Antonius Ltd is considering raising equity capital as they are looking to expand their business. They estimate they will need around $80 million for the expansion and feel that an appropriate price per share (based on advice) would be $8.00. You are to advise them how best to go about it, what type of shares they could consider, advantages and disadvantages of each and how best to ensure they obtain the full $80 million. You need to consider that it might be difficult to attract investors to part with the full $8.00 in one payment (minimum is 1,000 shares) given the current economic climate.

 Part B

Antonuis Ltd directors have decided to issue a prospectus on 25th April, 2011 for 10 million shares at $8.00

It closes on 28th May and requires payment of $2.60 per share on application.

Directors allocate shares on 10th June and upon allotment, a further payment of $2.60 per share is required (assume paid in fourteen days from allocation).

First and final call is on 17th August when the balance is to be paid, amount to be paid within 14 days (assume all received and recognised on that date).

Prepare all journal entries assuming all application monies recognised on 28th May (including ALL notations and dates). There was an oversubscription for another 300,000 shares and the directors decided to issue share son a "first-come, firstserved" basis

 Part C

What is the difference between an "Associate" and a "Subsidiary"? Give an example in your answer. And what is Goodwill and when is that applied?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Managerial Accounting) Materials
Who are the stakeholders in this situation? Who is benefited and who is harmed and was Ron ethical in the way he performed the time study test?
HOHO (Help Our Homeless Offspring) is a charity that works at reuniting homeless children with their families. It also operates numerous halfway homes for their care, counse
Find out the breakeven point in units and dollars. Also, find out the number of units and dollars which need to be sold to make a target profit of $5,000 month. Recognize wh
This question is on variance analysis in managerial or cost accounting. More specifically, it asks for computations of direct material price variance, direct material effici
What is the minimum transfer price that the Amber division should be willing to charge the Conley division for the 40,000 components it needs to produce the charger?
Determine whether your client is required to capitalize fringe benefits and general overhead that is attributable to employees who are building an addition to your client's
What is the month break-even point in units sold and in sales dollars and without resorting to computations, what is the total contribution margin at the break-even point?
Describe how the following affect the break-even point: increase or reduce in unit sales price, increase or reduce in variable cost per unit, increase or reduce in fixed cos