Reference no: EM133804975

Corporate Accounting and Reporting

Overview of the Subject

This subject promotes an in-depth understanding of company accounting and accounting standards. It is primarily concerned with the development of external financial reports by reporting entities in accordance with the Corporations Act 2001 (Cth). It draws emphasis to financial accounting topics including company financing, accounting for corporate income taxes, business combinations, consolidation accounting, accounting for associates and joint ventures, accounting for joint arrangements and translation of foreign currency financial statements.

Learning Outcome 1: Describe the financial reporting requirements that apply to Australian corporate groups

Learning Outcome 2: Prepare consolidated financial statements for a corporate group through application of the main provisions in Australian Accounting Standards.

Learning Outcome 3: Use appropriate problem solving strategies, processes and arguments, locate research resources and critically review the research literature.

Assessment Details
Details of Each Assessment Item
The assessments for this subject are described below. The description includes the type of assessment, its purpose, weighting, due date and submission requirements, the topic of the assessment, details of the task and detailed marking criteria, including a marking rubric for essays, reports and presentations.

Assessment 1

Assessment Type: Formative Assessment

Purpose: This assessment is designed to reinforce subject content taught each week allowing students to apply accounting principles to analyse and evaluate student comprehension, learning needs, and academic progress. The purpose of this assessment is to promote learning by considering the progress of each individual student at the early stage of trimester.

Assessment 2
Purpose: This assessment is designed to allow students to demonstrate an understanding of accounting standards, using them to identify and critically analyse problems as well as issues in the development of solutions.

Topic: Covers the material from lectures from Weeks 1-5. Students will be assessed on material covered in tutorial and lectures for weeks 1 -5. The exam will cover both theory and practical type questions.

Assessment type: Report on Consolidated financial statements and calculations - Individual assessment.
Purpose: This assessment is designed to allow students to research and analyse accounting standards and interpret how they apply to various corporate groups. It enables students to identify and solve problems relating to accounting for consolidated groups.

Assessment topic:

Consolidated financial statements from worksheet with adjustment entries for intragroup transactions: inventories, PPE, dividends, and loan

Task details:
On 1 July 2021, Green Ltd acquired all the issued shares of Blue Ltd for cash consideration of $145,000. At this date, the equity section of Blue Ltd.'s statement of financial position showed the following balances:

Share capital - 60 000 shares $ 60 000
General reserve 36 000
Retained earnings 21 000
At acquisition date, all the identifiable assets and liabilities of Blue Ltd were recorded at amounts equal to fair value except for:

Carrying amount Fair
value
Inventories $ 50 000 $ 56 000
Equipment (cost $30 000) 24 000 32 000
Machinery (cost $17 000) 15 000 16 000
Land 18 480 24 480

The inventories held by Blue Ltd at 1 July 2021 were sold during the following 12 months. The machinery which had a further 5-year life on acquisition date was sold on 1 January 2023. The land on hand was sold by 1 March 2022. The equipment was estimated to have a further 8-year life. Valuation adjustments are made on consolidation, and, on realisation of a business combination valuation reserve, a transfer is made to retained earnings.
Additional information
On 1 July 2022, Blue Ltd has inventories on hand of $12 000 transferred from Green Ltd in June 2022. The inventories had previously cost Green Ltd $11 800. By 30 June 2023, Blue Ltd had sold all $12 000 of the inventories to external parties.
On 1 January 2023, Green Ltd acquired $15 000 worth of inventories for cash from Blue Ltd. The inventories had previously cost Blue Ltd $11 000. By 30 June 2023, Green Ltd had sold $11 250 of the transferred inventories for $16 000 to external entities.
On 1 January 2022, Blue Ltd sold equipment to Green Ltd for $8000. This had originally cost Blue Ltd
$12 000 and had a carrying amount at the time of sale of $7000. Both entities charge depreciation at a rate of 10% p.a. straight-line.
On 1 January 2023, Green Ltd sold an item of inventories to Blue Ltd for use as machinery. This item cost Green Ltd $4000 and was sold to Blue Ltd for $6000. Blue Ltd depreciated the item at 10% p.a. straight- line.
On 30 June 2023, half of the goodwill was written off because of an impairment test.
On 1 February 2023, Blue Ltd paid an interim dividend of $2000. Blue Ltd declared a final dividend of
$3000 in June 2023 that is still to be paid. Shareholder approval is not required in relation to dividends.
In March 2022, Green Ltd made an interest free loan of $10 000 to Blue Ltd that remains outstanding at 30 June 2023.
The tax rate is 30%.
On 30 June 2023, the trial balances of Green Ltd and Blue Ltd were as follows:

Required
Prepare the consolidated financial statements for Green Ltd for 30 June 2023. Show all workings.
Calculate the acquisition analysis at 1st July 2021
Prepare consolidation journal entries at 30 June 2023
Prepare a consolidation worksheet at 30 June 2023
Prepare consolidated financial statements at 30 June 2023
Write a report about the consolidation process as per AASB10. Discuss the three adjusting journal entries required for the preparation of consolidated financial statements. Explain all intragroup entries a, b, c, d, e, and g in your answer, discussing the realisation of profits.
Note: Students must reference all sources including any GenAI used in preparing the assignment. Marking guide:
Interpretation and representation 20%

Calculations 50%
Analysis 10%
Assumptions 10%
Communications 10%

Assessment 4

Assessment Type: Final exam - individual assessment - invigilated exam.

Duration: On-campus: 2 hours + 10 mins reading time. Online: 2 hours + 30 mins technology allowance.
Purpose: The purpose of the final examination is to test your understanding of subject concepts and your ability to apply these concepts. The examination may cover materials used in tutorials, class discussions and/or from the readings. This assessment contributes specifically to learning outcomes a, b and c.

Topic: The examination may cover content from any part of the entire subject. Real experts, zero AI-Get authentic assignment help!

Task Details: The examination will include short and long answer questions which will require identification of issues, and use of relevant standards to solve complex problems. Further details may be provided during the trimester.