Reference no: EM132393949
FNS50215 Diploma of Accounting
FNSACC504 Prepare Financial Reports for Corporate Entities
Assessment - Project
Part 1
Undertake your own research to obtain an organisation’s annual report. You can use one from an organisation with which you are familiar or one which is freely available on the internet or from ASIC (Australian Securities and Investments Commission) or ASX (Australian Stock Exchange).
I.e. ASX Listed companies include:
• Woolworths Ltd
• Toll Holdings
• Qantas Airways
• Lend Lease Group
• Goodman Group
• JB HI-FI Ltd
Prepare a report (3–5 pages) answering these questions:
1. To whom is this report disseminated and how does this take place?
2. Why might these recipients need or want the information contained in the annual report?
3. What information is contained in the report? Describe the contents and explain what it disclosed about the organisation’s financial activities during the year.
4. Is there any evidence that those within the organisation used consolidation or conversion procedures to analyse the financial data which was available?
5. Has the organisation disclosed any asset or liability valuations? If so, what do they indicate?
6. Is there any indication of any discrepancies, unusual features of queries about the financial data? Describe.
7. Does it appear that the organisation claimed all available benefits and allowances? Explain.
8. Did the organisation record details of its income and expenditure? Is evidence provided? Provide details.
9. Examine the financial summaries for information about the financial status of the organisation. Did the organisation show a profit?
10. What sorts of recommendations are made and what suggestions are made regarding business activities for the upcoming year? Are they constructive?
11. Is the report and any recommendation clear and logical?
12. Has the organisation complied with its statutory requirements? Explain.
Part 2
a) The following business is to convert to a company. The new company Sunflower ltd will take over net assets (other than cash) at fair value of KPG Ltd. Consideration will be Paid in the form of assumption of liabilities, $50,000 cash and the balance by the issue of 100,000 shares issued as paid to 50¢. The shares have a fair value of $1 each.
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Carrying Amounts
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Fair Values
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Land
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$48,000
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$65,000
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Plant
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38,000
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36,000
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Debtors
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15,000
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12,000
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Total
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101,000
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113,000
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Trade creditors
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23,000
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23,000
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Required: Prepare the necessary journal entries to record this business event.
b) From the following ledger account of Brink lets Ltd prepare an Income Statement for the year ended 30 June 2015 for presentation in the annual report which complies with all of the necessary statutory requirement and regulations.
Trading Account
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$
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$
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Cost of goods sold
Profit & loss:
gross profit
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1,920,000
1,378,000
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Sales
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3,298,000
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3,298,000
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3,298,000
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Profit and loss Account
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$
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$
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Advertising
Delivery
Freight
Salaries: marketing
Depreciation: plant
Occupancy
Postal
Salaries:
administration
General Bed. Debt
Interest payable
Discount Allowed
Income tax expense
Net profit after income tax
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230,000
40,000
55,000
220,000
400,000
25,000
4,500
90,000
500
45,000
30,000
8,000
177,000
353,000
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gross profit
Income from investment
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1,378,000
300,00
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|
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1,678,000
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1,678,000
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Additional information
a. Depreciation includes an abnormal charge for depreciation adjustment on reassessment of the estimated useful life of plant and machinery. This is due to accelerated obsolescence resulting from technology changes at a rate not originally foreseeable.
b. Income from investment is made up of dividends received from Trinette Ltd. ($1000000) and income from Dritron Ltd $2000000. Driton Ltd is related tobrinklets Ltd.
c. Interest was payable on debentures held by unrelated parties.
Profit and loss appropriation
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$
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$
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|
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30.6.0A
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Interim dividend
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40,000
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Opening balance
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140000
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Proposed dividend
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160,000
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30.6.0.A
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Profit and loss: net profit
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353,000
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|
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General reserve
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80,000
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|
|
|
|
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Closing balance
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213,000
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|
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|
|
|
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|
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493000
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493000
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|
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1.7.0.A
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Opening balance
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213000
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Following are the balance sheets of two companies i.e. ABC Ltd and XYZ Pty Ltd. The latter is wholly owned by ABC Ltd.
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Liabilities
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Assets
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ABC Ltd
$
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XYZ Pty Ltd
$
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ABC Ltd
$
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XYZ Pty Ltd
$
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Share capital
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500,000
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200,000
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Sundry Assets
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480,000
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260,000
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|
Accumulated Profit
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100,000
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0
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20,000 Shares of XYZ Pty Ltd
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200,000
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0
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Sundry creditors
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80,000
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60,000
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|
|
|
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TOTALS
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680,000
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260,000
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TOTALS
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680,000
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260,000
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Requirements:
1. You are required to consolidate the two balance sheets. Your answer must be in accordance with AASB standard.
2. Provide Journal entry for consolidation of XYZ Pty Ltd into books of ABC Ltd
Part 4
Square Ltd’s projected sales report is given for the Month fromJuly to December 2017. Consider all sales would be credit sales. The actual sales for the months of May and June 2017 are also given.
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Liabilities
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Assets
|
|
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ABC Ltd
$
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XYZ Pty Ltd
$
|
|
ABC Ltd
$
|
XYZ Pty Ltd
$
|
|
Share capital
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500,000
|
200,000
|
Sundry Assets
|
480,000
|
260,000
|
|
Accumulated Profit
|
100,000
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0
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20,000 Shares of XYZ Pty Ltd
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200,000
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0
|
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Sundry creditors
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80,000
|
60,000
|
|
|
|
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TOTALS
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680,000
|
260,000
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TOTALS
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680,000
|
260,000
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Accounts Receivable is calculated at 50% current month, 30% last month and 20% second to last month.Build the projected cash collection for the last six months ending in December by using suitable mathematical tools.