Reference no: EM132375418
Corporate Accounting Assignment - Individual Business Report
Learning Outcomes -
a) Demonstrate an understanding of the concepts and theoretical frameworks of Company Accounting with Accounting standards.
b) Explain the purpose, content, format and practical applications of the requirements pertaining to a range of key areas of corporate accounting practices.
c) Analyse and interpret issues relating to accounting for companies.
d) Develop and critically analyse the contextual and theoretical aspects of accounting for groups.
e) Implement the accounting standards of Corporate accounting for Share capital, Leases and company tax.
f) Apply the accounting standards for group of entities, Business combination and consolidation.
g) Apply the Principle of Fair value cash flow statement and Impairment Loss.
Assessment Task: Business reports are practical learning tasks where students apply the theories they have been studying to real world situations. The students are required to select a topic or work on a topic provided by the lecturer, collect information (Primary and/or secondary) or work on the information provided by the lecturer, and prepare a report describing a business problem or incident.
ASSESSMENT DESCRIPTION: This assessment is designed to assess the students' ability to research and analyse accounting standards, and interpret how to apply relate corporate accounting concepts to various scenarios. It evaluates students' problem solving and researching skills and enables them to communicate the financial affairs of a company. The assignment is consist of 2 sections; the theory section which assesses the researching skills and case study section with complex calculations which allows the students to apply relevant accounting standards to the real life case.
This assignment has 2 parts, 2000 words theory interpretation essay and a response to a practical question.
Part A: Essay about the following:
Discuss the importance of identifying the acquisition date in AASB3/IFRS3.
Part B: Provide all calculations and related journal entries for the following case:
Alma Ltd acquired all the issued shares (ex div.) of Davis Ltd on 1 July 2018 for $1721920. At this date Davis Ltd recorded a dividend payable of $34000 and equity of the following.
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Share capital
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603000
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General reserve
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258000
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Asset revaluation surpluss
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207000
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All the identifiable assets and liabilities of Davis Ltd were recorded at amounts equal to their fair values at acquisition date except for the following;
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Account
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Cost
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Carrying Amount
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Fair value
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Further life-in
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Inventories
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$258,000
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$464,000
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|
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Land
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$517,000
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$931,000
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|
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Furniture
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$724,000
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$603,000
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$1,085,000
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4
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Of the inventories 92% was sold. by 30 :rime 2019 The remainder was sold by 30 June 2020.
In May 2019, Davis Ltd transferred $103500 from the Asset revaluation surpluss at 1 July 2018 to a General reserve.
Tax rate-30%.
Required
1. Prepare the acquisition analysis at 1 July 2018.
2. Prepare the consolidation worksheet entries for Alma Ltd's group at 30 June 2019. Including supporting calculations.
Attachment:- Corporate Accounting Assignment Files.rar