Discussion of the development of ifrs standards

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Reference no: EM133284919 , Length: word count:3000

International Context of Corporate Reporting

Task Details:
You are required to provide a coursework portfolio (submitted as one document) which brings together 3 separate task elements as follows:

1 Discussion of IFRS Standards and conceptual issues relating to a series of accounting adjustments.
2 Preparation of consolidated financial statements (including a foreign subsidiary) and discussion of IAS 21.
3 Discussion of the development of IFRS Standards and IASB's Conceptual Framework for Financial Reporting.

Learning Outcome 1: Demonstrate critical understanding of the role of financial reporting in the global business environment.

Learning Outcome 2: Demonstrate a critical understanding of the conceptual framework which underpins International Financial Reporting Standards (IFRS) as set by the International Accounting Standards Board (IASB).

Learning Outcome 3: Construct consolidated financial statements for a group of companies including a foreign subsidiary.

Learning Outcome 4: Assess the validity of accounting policies, propose correct accounting treatments for more complex transactions and events and justify accounting policies of international organisations in given scenarios.

TASK 1

You are the newly appointed head of the finance team for Moto Plc (Moto). One of your first tasks as head of the finance team is to review the draft single entity financial statements of Moto for the year ended 31 March 2022. These statements were prepared prior to your appointment as head of finance. A member of the finance team, Anis Biggs has raised some potential issues in respect of the draft financial statements and has sent you an email for further clarification.

Moto prepares financial statements under International Financial Reporting Standards (IFRS). Extracts from the email and the draft financial statements are included attached:

REQUIRED:

Draft a response to Anis Biggs detailing the accounting implications of the transactions in issues (1) to (5) above on the 31 March 2022 financial statements.

You should discuss the conceptual implications and the correct accounting treatment for each transaction using relevant IFRS Standards and the International Accounting Standards Board's Conceptual Framework for Financial Reporting.

You may undertake your workings to the nearest £1,000

TASK 2

Moto is keen to expand its global operations and purchased 75% of the ordinary share capital of Remover Inc. (Remover) on 1 April 2021 for 156 million Pesos. Remover is an overseas company incorporated in Mexico and is the first subsidiary acquired by Moto. The group must now prepare its first set of consolidated financial statements for the year ended 31 March 2022. The finance team have informed you that this task has not yet been undertaken as consolidated financial statements is not something they have previously prepared and are unsure how to complete.

Remover's financial statements are stated in their functional currency, the Peso. The balance on retained earnings of Remover on 1 April 2021 was 104 million Pesos.

Both Moto and Remover prepare financial statements to 31 March 2022 and adopt IFRS Standards.

The financial statements for Moto and Remover are included below (the financial statements for Moto include the adjustments in respect of the additional information from Task 1 and no further adjustments are required).

Required:
(a) Prepare the consolidated statement of profit or loss and other comprehensive income and the consolidated statement of financial position for the Moto Group for the year ended 31 March 2022 in accordance with IFRS Standards.

(b) IAS 21 The Effects of Changes in Foreign Exchange Rates outlines the appropriate accounting treatment for individual foreign currency transactions and the consolidation of a foreign subsidiary in group financial statements.

Prepare a briefing note outlining the treatment of individual foreign currency transactions and the consolidation of a foreign subsidiary in accordance with IAS 21 and critically evaluate the impact of this treatment on the financial statements. (15 marks)

TASK 3

Since 1973 IFRS Standards have been developed and are currently required in more than 140 jurisdictions and permitted in many more.

Required:
Discuss the objectives of the International Accounting Standards Board (IASB) and critically evaluate how the development of IFRS Standards and the IASB's Conceptual Framework for Financial Reporting help to deliver high quality information. Your answer should consider the global reach of IFRS Standards.

Attachment:- Corporate Reporting.rar

Reference no: EM133284919

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