Reference no: EM132356630

Prepare Financial Reports for Corporate Entities Assignment -

Question 1 - Prepare an accounting policy on processing of financial transactions for newly established business. Discuss the policy in details for the following topics:

i) Scope of the policy

ii) Responsibilities

iii) Chart of accounts and general ledgers

iv) Accounting conventions including accounting standards

v) Bank Accounts and reconciliation

vi) Depreciation methods

vii) Valuation of assets

viii) Financial reports

ix) Consolidation procedures for subsidiaries

First of all, a policy is a statement that showcases the principles and ideas of a business on each topic covered. Policies provide an overview of certain rules that we have in our business and should.

• align with business goals and plans
• reflect the culture of the business
• be flexible
• be easily interpreted and understood by everybody in the business.

Question 2 - ABC Pty Ltd is newly set up retail business and asks you to create a standard chart of accounts considering the 5 categories of financial transactions i.e. Assets, Liabilities, Equity, Income and Expenditure. Use this chart of accounts to input transactions into any accounting software e.g. MYOB. Take a screen shot and attach with your Assessment as an evidence. Your Chart of Accounts must reflect systematic Coding and Classification under the Policy and procedures of ABC Pty Ltd.

Question 3 - The XYZ Company Ltd was registered on 2 January 200A. The company immediately offered 4,000,000 ordinary shares for public subscription at a price of $2.00 each on the following instalment basis:

i) 60¢ per share on application (by 31 January)

ii) 60¢ per share on allotment (payable by 15 February)

iii) 40¢ per share on Call No. 1 (called on 3 March, due and collected on 17 March)

iv) 40¢ per share on Call No. 2 (called on 1 April, due and collected on 15 April). Applications were received for 4,000,000 ordinary shares by 15 January and the directors allotted the 4,000,000 ordinary shares on 31 January 200A. All calls were fully paid.

You are required to prepare:

a) The relevant journal entries (cash receipts entries may be entered in the general journal).

b) A Balance Sheet as at 30 April 200A. The Statement of Financial Position should be appropriately headed.

Question 4 - Briefly explain the difference between tax payable method and tax effect accounting method and state why the tax effect method is adopted under Australian Accounting Standards.

Question 5 - Describe the financial industry and provide examples financial institutions. Explain the ethical principles, behavior and codes of practice in financial services industry.

Question 6 - Describe the information which will be contained in typical financial reports.

Question 7 - Describe the following terms:

a. Types of Budgets including Zero based budgeting

b. Cash flows.

c. Profit and loss statements

d. Balance Sheet

Question 8 - What will determine how often you generate reports?

Question 9 - What would influence your decision to use cash accounting or accrual accounting?

Question 10 - What are the possible consequences of taxpayers failing to correctly report an amount they are required to pay or meet other tax obligations?

Question 11 - Determine and write a brief statement on the following accounting standards.

i. AASB 3 - Business combinations

ii. AASB 101- Presentation of financial statement

iii. AASB 107 - Cash flow statements

iv. AASB 1040- Statement of financial position:

v. AASB 112 - Income taxes:

vi. AASB 118 - Revenue:

Question 12 - Chose any of the following topics for your presentation in the class:

i) Conversion of private company into public company

ii) Consolidation of company

iii) Share capital issue

Present the above in power point slides including charts and diagrams (minimum slides 10).