Develop strategies to resolve business problems

Assignment Help Financial Accounting

Reference no: EM133070961

MAA363 Corporate Accounting - Deakin University

Learning Outcome 1: Apply accounting principles and techniques in a variety of business scenarios in line with accounting standards.

Learning Outcome 2: Identify and analyse complex business problems.

Learning Outcome 3: Develop strategies to resolve business problems, and report on these resolutions in line with accounting standards.

Questions

Part I: This part relates to topic 7: Financial instruments

Trojan Ltd issued some convertible bonds to Trevor Ltd. They have a life of five years and pay interest to Trevor Ltd each six months. The convertible bonds will be converted to shares only if Trevor makes the decision, at any time in the next five years, that it would prefer to receive shares in Trojan Ltd, rather than have its funds repaid.

Required
(a) How should Trojan Ltd disclose the convertible bonds in the balance sheet at the time of issue? There is a 40% chance that Trevor would convert the bond into equity. Explain whether this would influence disclosure of convertible bonds.

(b) Explain some of the economic implications for disclosure of convertible bonds in the books of Trojan Ltd.

(Indicative Wordcount distribution: 200 + 200 words) (Maximum 600 words, excluding reference list)

Part II: This part relates to topics 5 and 6: Business combination and consolidations

You have to submit an excel workbook with the following six (6) sheets:
• Sheet 1: Background Information
• Sheet 2: Consolidation Journal Entries
• Sheet 3: Consolidated Worksheet
• Sheet 4: Consolidated Income Statement
• Sheet 5: Consolidated Balance Sheet / Statement of Financial Position
• Sheet 6: Discussion on (c)

Required:

(a) Record the consolidated journal entries necessary to prepare consolidated accounts for the year ending 30 June 2022 for the group comprising M Ltd and N Ltd (In Sheet 2: Consolidated Journal Entries).

(b) Complete the consolidated worksheet for the year ending 30 June 2022 (In Sheet 3: Consolidated Worksheet).

i. Entering the consolidated journal entries in Part (a) above to the appropriate debit and credit columns in the Consolidated Worksheet; and
ii. Completing the Group figures in the Consolidated Worksheet.

(c) Sun Ltd is owned 50 per cent by Ted Ltd and 50 per cent by Tex Ltd (the founding shareholders). Each has two seats on the board, with no party having a casting vote, although Ted Ltd appoints the managing director. Profits are split 50-50 after the provision of the managing director's salary. Tex Ltd has agreed that it will pay a management fee to Ted Ltd, equivalent to 50 per cent of the results for the year. Ted Ltd is the holder of 10 options, which are exercisable at any time at a 10 per cent discount to the fair value of the shares as at the exercise date.

Required
Determine whether or not control exists and, if so, by which party (pursuant to AASB 10). Discuss the reasons for your answers.

Attachment:- Corporate Accounting.rar

Reference no: EM133070961

Questions Cloud

Build a dashboard with at least 5 charts : Build a dashboard with at least 5 charts, including at least 2 different slicers to update all charts through user interaction

Calculate equilibrium number of firms : Calculate the equilibrium number of firms in the U.S. and European automobile markets without trade.

Healthcare policy and law analysis : What could be the impact of noninvolvement of stakeholders and interest groups in policy or law reformation?

Compute the cost of capital for the individual components : The preferred stock is selling at $82 per share and carries a dividend of $7.20 per share. Compute the cost of capital for the individual components

Develop strategies to resolve business problems : Develop strategies to resolve business problems, and report on these resolutions in line with accounting standards

Performance of company collection management : Design and describe three indicators or KPIs to evaluate the performance of the company's collection management,

How much federal withholding tax was deducted : Dooley Publishing has the following payroll data for its July 1 pay date: How much Federal withholding tax was deducted from employees' pay

Describe how they operate in the workplace : Describe in detail two workplace skills you learned while completing the courses in your program and describe how they operate in the workplace.

Best gambling service named as captain cooks casino : To simplify the registration procedure, the administration of the Captain Cooks Casino gaming club offers another option.

User Account

All Pages