Explain when consolidated financial statements must prepared

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Reference no: EM131928028

Assignment

Need 2000 words. Company Name is PACIFIC TURBINE BRISBANE. USE 2016 ANNUAL REPORT. company name is already given which is PACIFIC TURBINE BRISBANE

PART A

Question 1. Briefly outline your company's main business activities. This should include discussion of the market sector/s (for example, financial services, energy, consumer products and services, health care, telecommunications, information technology, utilities) in which your company operates and the main products and/or services from which your company derives its income. Does your company disclose operating segment information in the notes to the financial statements: If it does, list your company's operating segments. Then explain how an operating segment is defined and some of the reasons for disclosing operating segment information in the financial statements? If it doesn't, explain how an operating segment is defined and some of the reasons for disclosing operating segment information in the financial statements. To answer the second part of this question you should make reference to the relevant paragraphs in AASB 8 Operating Segments.

Question 2. What does share capital (or contributed equity) represent and how is it created? Briefly explain how the share capital (or contributed equity) of your company has changed over the year and the reasons for any changes. What is a reserve account and what are the different reasons for establishing reserve accounts? What is the amount of Retained Earnings (or Retained Profit) or Accumulated Losses reported by your company? What do Retained Earnings (or Retained Profit) and Accumulated Loss accounts represent?

Question 3. What is your company's profit (or loss) before income tax for the period covered by the Annual Report? What is your company's income tax expense (or income tax benefit) for the period covered by the Annual Report? Did your company make a profit or loss for the period covered by the Annual Report: If it made a profit, multiply your company's profit before income tax by the company tax rate and compare this amount to the income tax expense for the year. Then explain why a company's income tax expense figure might be different to the figure calculated by multiplying profit before tax by the company tax rate. If it made a loss, explain why a company's income tax expense figure might be different to the figure calculated by multiplying profit before tax by the company tax rate. Explain why the amount of income tax expense reported by a company is different to the amount of tax paid by the company to the Australian Taxation Office.

PART B

Question 1. Briefly explain the four different types of investor-investee relationship and their accounting requirements. Explain the concept of ‘control' and how it differs from ‘significant influence'. Is your company part of a consolidated group? If it is, identify the number of individual companies that comprise the group. Explain when consolidated financial statements must be prepared for a group and which entity within the group is responsible for preparing them? Briefly explain the process involved in preparing consolidated financial statements and how consolidation differs from the equity method of accounting. When preparing consolidated financial statements: What is the purpose of the acquisition analysis. Why are some assets revalued as part of the consolidation process? Does your company have any associates? If it does, identify the number of associates it has. What is a joint arrangement and how does a joint venture differ from a joint operation? Is your company a party to any joint arrangements?

Question 2. How is goodwill defined, in what circumstances can goodwill be recognised and how is goodwill measured? In which section of which financial statement would goodwill be disclosed? Does your company report any goodwill: If it does, explain any changes (increases and/or decreases) that have occurred to goodwill over the period covered by the Annual Report including the events that have caused these changes. If It doesn't, explain why any goodwill that has been recognised might change (increase and/or decrease) over time.

Reference no: EM131928028

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