Prepare acquisition analyses for Ezy Manufacturing Ltd

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Reference no: EM132279227

CORPORATE ACCOUNTING Assignment -

PART I - EZY MANUFACTURING LTD (Ezy)

Required:

(1) Prepare the general journal entries in the accounting records of Ezy Manufacturing Ltd to record the

a) Acquisition of investments in,

i) Range Pty Ltd on 1 July, 2015;

ii) Swift Works Ltd on 1 July, 2017;

b) Dividend received or receivable during the year ended 30th June, 2019.

(2) Prepare acquisition analyses for Ezy Manufacturing Ltd's investments in subsidiaries on the respective dates of acquisition.

(3) Prepare the consolidation journal entries* required to prepare the consolidated worksheet of the Ezy Group as at 30 June 2019. Show all workings providing explanations and justifications with reference to appropriate accounting standards, where necessary.

*The consolidation journal entries must address

a) Differences between fair value and book value of identifiable net assets acquired by Ezy on the dates of acquisition;

b) Elimination of investments in subsidiaries;

c) Recognition of 'Goodwill' or 'Gain on Bargain Purchase';

d) Elimination of intercompany transactions and balances, such as,

i) Dividends paid or payable by subsidiaries;

ii) Intercompany sales of inventory;

iii) Unrealised profit in closing inventory;

iv) Unrealised profit in opening inventory;

v) Intercompany sale of non-current asset;

vi) Intercompany receivables and payables.

vii) Intercompany revenues and expenses

e) Tax effect adjustments, where necessary.

(4) Complete the consolidated worksheet of the Ezy Group for the year ended 30 June 2019. An incomplete proforma consolidation worksheet of the Ezy Group is available on VU Collaborate in Excel format.

PART II - Topic: Impairment of Assets

Get access to a copy of the 2018 Annual Report of Myer Ltd. Then refer to the NOTES to the Consolidated Financial Statements of Myer Holdings Intangible Assets (C2).

Answer the following questions:

1. Why is an impairment test considered necessary?

2. What effect does impairment have on a company's Balance Sheet and profit and Loss Statement?

3. What is the value of Goodwill for Myer Holdings at 29th July 2017 and 28th July 2018? Provide some possible reasons for this change.

4. Which other Intangible assets have been impaired between 2017 and 2018?

5. Explain what impact does changing (increasing or decreasing) the discount rate have on the calculation of impairment losses?

6. Can we reverse impairment losses for all assets? Explain.

Max: 500 words.

Attachment:- Assignment Files.rar

Reference no: EM132279227

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Reviews

len2279227

4/10/2019 3:24:41 AM

NEED TO COVER BOTH PART- 1 and 2. For the part 2 make sure to use financial accounting by deegan edition 8 for referencing. Check the excel sheet as well which i provided you need to use that data. Make sure to use accounting standards as well and please follow the Instructor guidelines. And excel sheet which i provided is need to be used for PART 1 sub part 4.

len2279227

4/10/2019 3:24:36 AM

Assignment submission - This is a group assignment to be submitted electronically by groups of three (3) students. It is YOUR responsibility to form groups, via self-allocation to a group on VU Collaborate. Remember, once a group is formed, it is up to you and your group members to maintain group discipline. All group members are equally responsible for the submission of the assignment. Assignments undertaken by an individual without prior permission will not be accepted for marking. Groups must assign a leader and keep all records of meetings and tasks assigned to group members. Students must meet physically or electronically at least three times before submitting the assignment. Meeting records must be attached at the end of your assignment. A suggested meeting log is attached.

len2279227

4/10/2019 3:24:31 AM

Each member of the team must complete, scan and submit the Assignment Cover Sheet along with the assignment. Completed extension application form must be submitted to your unit coordinator at least three days in advance of the due date. Students are responsible to protect their work and save data by making necessary backup. Loss of data due to a computer or storage devices problems will not be considered a legitimate reason for an extension. Students should keep a copy of their assignment until their result for the unit is finalised.

len2279227

4/10/2019 3:24:22 AM

Referencing and style - The presentation should be clear, concise and accompanied by expository text accessible to the reader. The presentation of the entire assignment should be written in English of an appropriate academic register and a format and standard of presentation acceptable to business study. Assignment should be double spaced with left and right margins of 2.5 cm and top and bottom margins of 2.5cm. It must be typed in Microsoft Word using Times New Roman, 12 font size. The assignment is required to use a Harvard referencing style. Assignment without proper referencing (in text and end of text) will be subject to substantial deduction of marks. This may result in the assignment being marked zero.

len2279227

4/10/2019 3:24:16 AM

Where a group member is not cooperating or contributing to the group and the group has made all efforts to resolve the issue, the group must inform the lecturer and the unit coordinator immediately via email. Where a group does not report this matter immediately, it will not be entertained later on, especially before the due date of the assignment. The defaulting member will be given a warning and should the member continue to default, the group will continue without the defaulting member and the defaulting member will receive zero for the task.

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