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ACCT6005: Company Accounting - Practical Problem Solving - Accounting Assignment Help
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Assignment Task :
Learning Outcomes
This assessment addresses the following subject learning outcomes:
a) Prepare consolidated financial statements and related accounting entries for incorporated entities.
d) Generate and communicate strategic recommendations in various inter-entity relationship scenarios with reference to relevant accounting standards.
Context:
• Assessment coverage: Module 4 Associates and Joint Ventures
• You are required to demonstrate: 1) the assumed knowledge and skills from Module 1 Introduction and Principles of Consolidation, Module 2 Intragroup Transactions, and Module 3 Non-controlling Interest, 2) understanding and ability to account for associates and joint ventures using the equity method of accounting.
• You are able to prepare: acquisition analysis, adjustment entries for associates and joint ventures using the equity method of accounting, consolidated financial statements
• You are able to recommend and communicate strategic recommendations regarding associates and joint ventures.
Instructions:
• Show all relevant workings where required.
• Combine the answers for both Part A and Part B into one assessment document.
Case Scenario
Antara Ltd operates in the construction industry and do not prepare consolidated financial statements. Laura Jones is the senior accountant of the company, leading the financial reporting team. As a result of being profitable for the last five years, on 1 July 2018, Antara Ltd acquired 25% of the issued ordinary shares of Blanca Ltd paying $198 000 in cash. This provided Antara Ltd with the significant influence over Blanca Ltd.
At the acquisition date, Laura and her team received the information below for Blanca Ltd:
• Equity comprised $180 000 share capital and $144 000 retained earnings.
• All identifiable assets and liabilities were recorded at their carrying amounts equal to the fair values with the exceptions of three assets: Inventory, Land, and Equipment.