HI5020: Apply Australian Accounting Standards and Corporate Legislation - Accounting and Finance Assignment Help

Assignment Task:

Task:

Purpose: This assignment is designed to assess your level of knowledge of the key topics covered in this unit Unit Learning Outcomes Assessed:

1. Apply Australian Accounting Standards and Corporate Legislation to the financial reporting processes for companies and corporate groups;

2. Demonstrate the ability to prepare financial statements and financial reports for companies and consolidated financial statements for corporate groups; 3. Evaluate financial reporting contexts and select appropriate accounting practices and standards congruent with the situation of individual companies and corporate groups;

4. Demonstrate an ability to critically analyse and interpret the financial statements and other disclosures produced by Australian companies and corporate groups;

5. Effectively communicate the financial results and reports of companies or corporate groups to a diverse range of stakeholders.

Description: Each week students were provided with three tutorial questions of varying degrees of difficulty. The tutorial questions are available in the Tutorial Folder, for each week, on Blackboard. The Interactive Tutorials are designed to assist students with the process, skills and knowledge to answer the provided tutorial questions. Your task is to answer a selection of tutorial questions for weeks 1 to 11 inclusive and submit these answers in a single document. 

Question 1 (7 Marks) (a) Differentiate between the ‘definition of assets’ and ‘recognition criteria of assets’ provided in the conceptual framework of accounting. (3.5 marks)

(b) Can an entity include an asset in its balance sheet that it does not legally own? Explain your answer in relation to the definition of the assets and recognition criteria of assets. (3.5 marks)

Question 2 (7 Marks) Pheonix Limited made an offer to the public via a prospectus of 1,000,000 shares with an issue price of $1.00 per share. The shares were payable as $0.50 on application and a further $0.20 on allotment and $0.30 on call. Applications closed on 1 March 2020 and 1,500,000 applications were received (an oversubscription of 500,000 shares). Allotment was made on 20 March 2020. The company allotted 1,000,000 shares and the excess application monies were retained against allotment and call amounts. The call money was due on 1 October 2020. All monies to be paid have been received on time except 100,000 shareholders who could not pay the call money. These 100,000 shares were forfeited by the management on 20 November 2020. Prepare the journal entries to record the above. (7 marks)

Question 3 (7 Marks) You are provided with the following information: Sales for the year $400 000 Discounts provided during the year to customers for early payment $10 000 Doubtful debts expense for the year $5 000 Opening balance of accounts receivable $90 000 Closing balance of accounts receivable $80 000 Opening balance of the provision for doubtful debts $9 000 Closing balance of the provision for doubtful debts $8 000 Cost of goods sold for the year $60 000 Purchases for the year (on credit terms) $80 000 Discounts received for early payment to suppliers $2 000 Stock write-offs owing to water damage caused by melting ice in the Antarctic $5 000 HI5020 Corporate Accounting Tutorial Assignment T1 2021 Page 3 of 5 Opening balance of trade creditors $40 000 Closing balance of trade creditors $35 000 Opening balance of inventory $10 000 Closing balance of inventory $25 000

Required:

(a) Calculate the cash receipts from customers during the year. (3.5 marks)

(b) Calculate the cash payments to suppliers during the year. (3.5 marks)

Question 4 (7 Marks) Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the share capital and reserves of Company B are: Share capital $8 million Retained earnings $2 million $10 million

(a) What amount of goodwill will be shown in the consolidated statement of financial position pursuant to AASB 3 assuming that any non-controlling interest in the acquirer is measured at fair value? (1 marks)

(b) What amount of goodwill will be shown in the consolidated statement of financial position pursuant to AASB 3 assuming that any non-controlling interest in the acquirer is measured at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets? (1 marks)

(c) Pass the necessary consolidation journal entries and the journal entries to record the non-controlling interest if the non-controlling interest in the acquirer is measured at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. (4 marks)

(d) What are some of the implications of allowing the group to have two options in accounting for goodwill on consolidation? (1 marks)

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