Brief report on the subsidiaries and consolidation policies

Assignment Help Financial Accounting

Reference no: EM132376635 , Length: word count:2000

Advanced Financial Accounting Case Study Assignment - Thyme Publishing Ltd

Learning Outcomes -

Critically evaluate International Financial Reporting Standards (IFRS) for combined business entities.
Integrate theoretical and technical accounting knowledge, skills and competencies to prepare general purpose financial reports for combined business entities.
Communicate accounting information in a professional manner.

Introduction - Thyme Publishing Ltd is a publicly listed company located in Melbourne. The company, founded in 2001, has undertaken a growth and expansion phase in recent years, particularly with its online business and diversification into graphic design. It is now recognised as a major Australian bookseller, publisher, and digital graphic designer in Australia and New Zealand.

Thyme Publishing Ltd has three entities that it controls:

Island Publications Ltd (Hobart, Tasmania) (60% of the share capital owned).
Creative Design Pty Ltd (Paradise, Tasmania) (100% of the share capital owned).
Cloud Press Ltd (Christchurch, NZ) (100% of the share capital owned).

You have been appointed as group accountant for Thyme Publishing Ltd. As such you are required to prepare consolidated financial statements for the Parent and its Subsidiaries for the year ended 30 June 2019. In addition, the board have requested that you provide a brief report on the consolidation policies of an ASX 200 company to assist in their deliberations for Thyme Publishing's 2020 vision & strategic planning for the future. Further details are provided at the end of this document.

Questions about the content of this assignment MUST be posted on MyLO.

General Information about Thyme Publishing Ltd -

The presentation currency for the group is AUD.

Thyme Publishing Ltd treats Cloud Press (NZ) Ltd as a foreign entity according to AASB121 and uses the current rate method to translate financial information.

The functional currency for Cloud Press Ltd is NZD. You will first need to translate the New Zealand operations into the presentation currency of the group before applying consolidation principles.

The management of Thyme Publishing Ltd values any non-controlling interest at the proportionate share of Island Publications identifiable net assets, using the partial goodwill method (AASB3).

Thyme Publishing Ltd recognises a receivable for dividends when they are declared by a subsidiary.

All entities within the group use the perpetual inventory method.

The group uses the direct method to present cash flows from operating activities.

Round to the nearest dollar for ALL journal entries and calculations (NOT '000s or $m).

Expenses need to be classified by function in the consolidated financial statements.

For all financial statements, you may use either $ OR 000 (NOT $m) but all must be the same.

The Australian income tax rate is 30%. New Zealand's company tax rate is 28%.

Required -

Thyme Publishing Ltd has asked you to prepare a full set of Consolidated Financial Statements for the group for the year ended 30 June 2019 in accordance with applicable accounting standards. In addition, you have been asked to provide a brief report on the subsidiaries and consolidation policies of the ASX 200 company assigned to you. The purpose is to compare and contrast the policies, decisions and outcomes (financial statements) with those of Thyme Publishing to assist the Thyme board with their 2020 vision & strategic planning for the future.

Specific Requirements: In a WORD document prepare a professionally presented report that sets out the following in this ORDER:

1. COVER PAGE: An original cover page that includes your name, ID number, unit, assignment name, date. DO NOT include the TSBE assignment coversheet.

2. An executive summary (150 words) explaining the content of your report. This should be presented on the next page by itself. You may include a separate content page on the following page if you wish but this is not required.

3. ASX200 Co. comparison: In your own words write a brief report (250 words) on the consolidation policies and latest consolidated financial statements of the ASX200 company you chose to research. Reference accounting standards used. Choose ONE company from the list provided on MyLO. Self-selection will be OPEN for 1 week from 12noon on 12/9/19 to 19/9/19 (similar to tutorial sign-ups on MyLO Announcement). Only ONE student per company. After this time unenrolled users will be allocated a company - no choice. Please double check the list before submitting your assignment. If you submit on another company (not the one allocated on MyLO) you forfeit all marks assigned to this component. Your report must include a discussion that compares and contrasts what you have prepared for Thyme Publishing Ltd with the ASX200 company. You may use a table to compare and contrast. Google your company's website to download their latest Annual Report and financial statements. Alternatively, go to ASX. Scroll to find your company then click on the code to access all your company's information including the latest Annual Report (see on right hand side under 'Resources').

4. SAMPLE statement -ASX200 Co: Scan or use 'print screen' or 'snipping tool' to cut and paste a copy of ANY ONE current financial statement from your ASX200 company. Your statements for Thyme Publishing Ltd should have the same professional appearance.

5. An acquisition analysis for each of the controlled entities of Thyme Publishing Ltd.

6. Translation of foreign subsidiary's accounts: Translate the accounts of the foreign subsidiary, Cloud Press (NZ) Ltd, into Australian dollars before applying consolidation principles. Show NZD, relevant exchange rate, AUD for each account and Verify the translation difference.

7. Consolidation journals: In order of the additional information provided above. All consolidation eliminations and adjusting journal entries (including non-controlling interest calculations and journal entries) required for the preparation and presentation of consolidated financial statements of Thyme Publishers Ltd and its controlled entities for the year ended 30 June 2019. Please write out account names in FULL at ALL times - NO ABREVIATIONS. USE narratives & calculations for each journal entry. Include an explanation if you chose to exclude or omit anything.

8. Professionally presented financial statements. This includes a consolidated Statement of Comprehensive Income; consolidated Statement of Changes in Equity; a consolidated Statement of Financial Position; consolidated Statement of Cash Flows and any applicable notes for Thyme Publishing Ltd and its controlled entities for the year ended 30 June 2019.

These financial statements are required to be set out in accordance with AASB 101 Presentation of Financial Statements. To apply AASB 101, you should follow the formats you learnt about in the pre-requisite unit BFA201 (or equivalent unit) plus any other requirements you have learnt in this unit for Consolidated Financial Statements (e.g. non-controlling interests). Please also refer to the illustrative examples for Australian public companies provided on MyLO & your ASX200 company.

9. SUBMIT A SEPARATE EXCEL FILE showing your completed consolidation worksheet incorporating the adjustments, eliminating and non-controlling entries. All adjusting items in the worksheet must have a reference to the corresponding journal entry. It is recommended that you also use an excel spreadsheet to set out all above requirements (5-8) then copy these to each page into your word document.

For completion of the financial statements, please note the following:

The financial statements will be an abridged version from three perspectives:

1. Comparison figures are provided for the Statement of Financial Position, but for other statements you will need to use xxx's where data are not available.

2. Note 1: You do not need to list all accounting policies as part of Note 1 - just reference those applicable to the consolidation process and this assignment.

3. 'Earnings per share' - has not been covered in this unit. Therefore, you do not need to include the 'Earnings per share' information at the end of SPLOCI.

Do not include a 'Director's report' this is part a financial "report" NOT the full set of financial statements.

Do not include references to specific accounting standards on the face of the statements. Where relevant this information should only be in the notes.

To assist with completion of the Statement of Changes in Equity, assume there were no other movements in Share capital during the financial year other than what is provided in additional information above.

Use ONLY the Australian content guidelines as per KPMG illustrative disclosures.

Markers will be instructed to give ZERO where there has been little/no attempt to apply professional standards to the construction of statements eg. Cutting and pasting the worksheet list of accounts as presented in the worksheet will attract a default mark of zero.

Note - Word Count: 2000 and choose the company: Evolution mining limited. And Harvard ref use. Number of ref: above 8.

Attachment:- Advanced Financial Accounting Assignment Files.rar

Reference no: EM132376635

Questions Cloud

Number of employees have received calls from individuals : Your boss mentions that recently a number of employees have received calls from individuals who didn't identify themselves

Could dawson establish a claim for retaliation : Shane Dawson, a male homosexual, worked for Entek International. Some of Dawson's co-workers, including his supervisor, made derogatory comments about.

Identify the structure and work design : Research and discuss an organization of your choice and identify the structure and work design. Identify both pros and cons to their type of structure.

Dynamic multicultural and virtual teams : Evaluation of the main concepts with a focus on their application to management practice and their impact on positive social change

Brief report on the subsidiaries and consolidation policies : BFA301 Advanced Financial Accounting Case Study Assignment - Thyme Publishing Ltd, University of Tasmania, Australia. Brief report on the subsidiaries policies

How often risks will be reviewed and who will be involved : You are the new IT Project Manager for the organization you chose in Week 1, and the CFO is needing a risk assessment for migrating from SQL Server 2008 r2.

Spirituality paper for mental health : Spirituality paper for mental health and LIQUOR TRAFFIC AND PROHIBITION

Discuss the pros and cons of one method of transmission : What concerns should be understood about data communications being sent over wireless networks? Discuss the pros and cons of one method of transmission

Explain the nature of the legal system : Unit 7 - Business Law – H/617/0736 - Higher National Certificate/Diploma in Business - University Centre Colchester - Illustrate the potential impact of the law

Reviews

len2376635

9/25/2019 11:21:03 PM

Note - Word Count: 2000 and choose the company: Evolution mining limited. And Harvard ref use. Number of ref: above 8. Please note the following: An electronic copy of your assignment needs to be submitted to the relevant BFA301 MyLO assignment dropbox by the due date and time. The file name is to include your name and ID. Please also submit a hard copy of the assignment (collated in the order noted above). As campus assignment boxes have been removed, please HAND TO YOUR TUTOR. The due date and time for hard copies is your normal Week 11 tutorial. Monday tutorials may submit to the Unit Coordinator on Tuesday. Please just drop your assignment into the 9am or 10am Tuesday tutorial before the start of class. Penalties will apply for late submission of both online and hard copies. Hard copy submissions MUST be exactly the same as the assignment submitted online by due date.

9/25/2019 11:20:53 PM

Hard copies will not be returned. Marked up assignments will be available online together with feedback and graded rubrics once marks are released. This is an individual assignment. Under no circumstances should you share your workings or any part of your assignment with other students. This constitutes academic misconduct and action will be taken. All similarity reports on Turnitin will be thoroughly checked for matching with other assignments. WORD LIMIT: NO word limit EXCEPT: Executive Summary (150 words); ASX200 report (250words).

9/25/2019 11:20:46 PM

Rubric - Astute and comprehensive interpretation of all required adjustments in scenario. Clearly demonstrated by accurate journal entries, worksheet, and supporting calculations to correctly explain the application of relevant accounting standards. 80% - 100% of calculations, journal entries & worksheet correct. Accurate and professionally presented full set of consolidated financial statements according to AASB requirements. Concise & logically structured written report providing a thorough & insightful comparison of your assigned ASX200 company & case study solution through the application of consolidation principles. Consistently adhered to English, referencing and professional reporting conventions.

Write a Review

Required(*) Message

User Account

All Pages