Reference no: EM133127913

ACCT6005 Company Accounting

Part A: Case study analysis

Learning Outcome 1: Prepare consolidated financial statements and related accounting entries for incorporated entities.
Learning Outcome 2: Generate and communicate strategic recommendations in various inter-entity relationship scenarios with reference to relevant accounting standards.

Case study:

PART A

Grape Ltd acquired all the issued shares of Duck Ltd for $940 000 cash on 1 July 2020. The following information is available at this acquisition date:
The equity of Duck Ltd is provided below:

All the identifiable assets and liabilities of Duck Ltd were recorded at fair value in the statement of financial position. The company income tax rate is 30%.

The following transactions and events occurred during the year ended 30 June 2021:

1. During the year Grape Ltd sold inventory to Duck Ltd for $55,000 at cost plus 20%. Duck Ltd has sold 10% of these items externally as at 30 June 2021.

2. On 1 April 2021, Duck Ltd sold an item of inventory to Grape Ltd for $28,000. This inventory had cost Duck Ltd $20,000. Grape Ltd treated the item as plant and will depreciate it at 20% p.a.

3. Grape Ltd sold land to Duck Ltd for $25,000 which had originally cost $32,000.

4. Dividends: Duck Ltd paid $18 000 interim dividends in September 2020, and Grape Ltd declared $26 000 dividends in May 2021 (to be paid in October 2021).

5. On 1 July 2020, Grape Ltd provided an office for Duck Ltd's administrative staff to use. Grape Ltd charges $700 per month. The last rental receipt received by Grape Ltd was on 30 April 2021.

Required:

Part (a)
Analyse the completed worksheet attached for the Grape group. Using the information provided in the worksheet, prepare an evaluation report in word, detailing each omission and error. For each error:
1. List the accounts and amounts, which are incorrect for each consolidation adjustment.
2. Explain WHY the entry is incorrect. Include formulas where possible in your explanation.

Part (b) Prepare the consolidation entries as at 30 June 2021 in excel using the template below. Include narrations for each entry:

Part (c): Worksheet

Using excel, prepare the consolidation worksheet as at 30 June 2021, showing all entries including the corrected entries discussed in Part (a). Each entry needs to be entered as a separate amount and not entered as subtotals in the worksheet. Round your answers to zero decimal places. The worksheet template is provided below.

Part (d): Group financial statements
Using excel, prepare the Statement of Financial position for Grape Ltd as at 30 June 2021.

Video Presentation and script

Prepare a video presentation and a script (Word document only) to address each of the following questions, in relation to Part A Case study. You will be assessed on your technical understanding of each question and also your presentation skills. Please refer to the marking rubric which details the assessment criteria for the communication and presentation skills. Please ensure your presentation does not exceed the 8 minutes +/- 10% time limit. Penalties will apply if exceeded.

Script requirements:

All scripts must have a Safe assign report and be in word format not pdf. Scripts do not need to be in a business report format, and can be in dot point format. Power point slides are not acceptable as a script. You may use PowerPoint slides in your presentation, however a separate script in a word document, with a Safe-assign report must be submitted. Appropriate referencing is required on all scripts, power point slides and the presentation. Marks will be deducted for missing scripts, inadequate referencing and incorrect file format.

Attachment:- Company accounting.rar