FNSACC504 Prepare financial reports for corporate entities Assignment Help

ASSESSMENT 1 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

For this assessment, students are to prepare updated financial records for the acquisition of RDL Ltd by TMH Ltd (Information found in Appendix 1).  Students are to complete the Balance sheet ending 30 June 2013 for TMH Ltd which doesn’t include merger details.  Students must then use the information provided to complete the Balance sheet for the new parent company following the merger,

Students are to prepare an updated balance sheet following the acquisition of RDL Ltd. by TMH Ltd.  Students must:

  • Undertake face to face or phone consultation with your instructor, who will role-play the part of management of TMH Ltd. to define any procedures you must follow as well as set timeframes and deadlines.
  • Complete the worksheet provided in Appendix 1.
  • Complete the year ending 30 June 2013 Balance sheet for TMH using the information provided.
  • Systematically review, code and classify data as required and check for accuracy following policies set by your instructor and complying with AASB standards.
  • Undertake conversion & consolidation procedures to compile the data (Using the merger method) and make comments as to appropriateness and ensure they meet AASB standards
  • Calculate the amount of income tax for TMH for the year ending 30 June 2013.  Take into consideration assessable and non-assessable items.  Including performing the following tasks:
  • Calculate the amount of income tax expense for the year, using the derivative method that complies with Accounting Standard AASB1026/AAS28
  • State the Profit before income tax
  • State the Accounting Profit
  • State the Profit after income tax.

ASSESSMENT 2 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements 

Students are required to complete financial reports for the reportable entity of Atlanta Company (using the information provided in Appendix 2).  The following must be completed:

Students must utilise the data provided to undertake the following:

  • Prepare comprehensive income statement.
  • Prepare Statement of Change in Equity
  • Prepare Statement of Financial Position
  • Prepare Cash Flow Statement.
  • Students are required to provide notes for the important information as per AASB standards.
  • Appropriate diagrams and graphs must be included as well as supporting data as necessary
  • Students must ensure they comply with organisational policy and AASB standards for their report presentation (this information should be sought from your instructor who again will role-play the part of Atlanta management

ASSESSMENT 3 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements 

This is a 2-part assessment with the first part involving research work and the second part involving written assignment.

Part 1: (1,500 words)

For this part, students are required to work in small groups of 2-4 to undertake the following research assignment.  Students must research into business legal requirements as well as financial and taxation requirements in regards to business reporting requirements and business mergers / acquisitions.   This report should include:

  • Discuss the differences in calculation of income tax based on the PAYG system and the Income Tax Assessment Act
  • Discuss what constitute taxable transactions, and what legislation governs this
  • Provide information regarding the impact the AASB has on reporting requirements to businesses
  • Discuss the legal implications that affect businesses – research into different State and Federal legislation and comment on each

 

Part 2 (800 words)

For this assignment, students are required to discuss why it is necessary to have the legislation and accounting standards discussed in Part 1.  Students should concentrate on the following:

  • Who is being protected by the legislative / standards?
  • What do these laws / standards promote?
  • What do these laws / standards prevent?
  • How do these laws / standards promote ethical accounting?

Both parts should be submitted together as a 2,300 word assignment.

 

Appendix 1:

On 1st July, 2014, TMH Ltd. acquired all the share capital of RDL Ltd.

At that date the equity of RDL was:

 

Share Capital                                            $60,000

General Reserve                          $10,000

Retained earnings                                    $10,000

 

Additional information

During the year ended 30 June, 2016:

  1. TMH Ltd sold goods to RDL for $20,000
  2. Unrealized profit in the inventory:
  • At 1st July 2015, $1,000
  • At 30 June, 2016, $700
  1. On 1st January, 2016, RDL Ltd. sold an item of plant to TMH Ltd. for $20,000. The book value of the plant at the date of sale was $16,000. TMH Ltd depreciates plant at 15% per annum on cost.
  2. TMH Ltd charged RDL Ltd a management fee of $7,000 for the year ended 30 June, 2016.
  3. Goodwill is tested annually for impairment goodwill has been impaired by $5,000 for the year ended 30 June, 2016.

 

Consolidation worksheet 30 June 2016 TMH Ltd RDL Elimination Consolidation Statement
DR. Cr
$ $ $ $ $
Sales 330,000 240,000
Inventory 1-7-2015 30,000 20,000
Purchase 180,000 110,000
210,000 130,000
Inventory 30-6-2016 40,000 20,000
Cost of goods sold 170,000 110,000
Gross profit 160,000 130,000
Operating expenses 113,000 94,000
47,000 36,000
Add: Profit on sale of plant 4,000
        Management fee received from RDL 7,000
        Dividend received from RDL 4,000
Profit before tax 58,000 40,000
Less: Income tax expenses 10,000 18,000
Profit 48,000 22,000
Retained earnings 1-7-2015 20,000 16,000
Available for appropriation 68,000 38,000
Appropriation:
         Interim dividend paid 8,000 4,000
         Declared final dividend 10,000 6,000
         General reserve 10,000 4,000
Total appropriation 28,000 14,000
Retained earnings 30-6-1016 40,000 24,000
Share capital 200,000 60,000
General reserve 72,000 15,000
Non-current liabilities 2,000 16,000
Current liabilities 56,000 27,000
370,000 142,000
Share in RDL Ltd 110,000
Other non-current assets 150,000 90,000
Inventory 46,000 20,000
Other current assets 64,000 32,000
Goodwill on consolidation
Accumulated impairment- goodwill
370,000 142,000

Required: Complete the consolidation worksheet

Students should use appropriate tax rate as stated by ATO for their tax calculations.

 

Appendix 2

You are provided the following trial balance of Atlanta Company Limited. This is just draft prepared by your accountant where company has provided the additional information that need to be incorporated in your final financial report.

 

Atlanta Company Limited

Trial Balance

  2015 2016
  Debit Credit Debit Credit
Cash at bank 17,560 65,880
Call on deposit 200,000
Account receivable 86,810 91,590
Commission income accrued 400 600
Inventory 77,520 73,190
Land and building 250,000 210,000
Accumulated depreciation- Building 14,000 19,400
Motor vehicle 35,000 60,000
Accumulated depreciation 7,900 20,800
Plant 50,000 40,000
Accumulated depreciation 15,500 19,800
Account payable 55,860 59,440
Accrued salaries and wages 790 1,030
Taxation payable 21,300 35,920
Dividend payable 30,000 40,000
Debenture 100,000
Share capital 300,000 400,000
Retained earnings 21,940 21,940
Sales 675,000 759,220
Cost of goods sold 350,000 386790
Commission income received 3,030
Salaries and wages 157,860 197,800
Superannuation 15,000 7,900
Motor vehicle expenses 30,000 14,700
General expenses 20,140 18,300
Depreciation- Building 4,000 5,400
Depreciation- Motor vehicle 11,000 12,900
Depreciation- Plant 5,000 6,800
Advertising expenses 2,000 500
Bad debts 5,000 2,310
Income tax expenses 25,000 35,920
Total 1,142,290 1,142,290 1,480,580 1,480,580

Additional information for the June end 2016.

  1. Cost of goods sold of June end 2016 in above trial balance is consist of:

Opening inventory                                                      $77,520

Purchase ($34,500 cash and $347,960 credit)                      $382,460

Closing stock                                                              $73,190

Cost of goods sold ($77,520+$382,460 – $73,190) $386,790

  1. Cash sales are $86,000 out of total sales in above trial balance.
  2. All the expenses except depreciation and bad debts are cash expenses.
  3. Dividend payable of 2015 is paid.
  4. Company paid interim dividend $20,000.
  5. Revaluation value of land and building is $260,000 at June end 2016.
  6. 10% of retained earning transferred to General Reserve.
  7. Company issued share capital $100,000 at June end 2016

ASSESSMENT 4 – Online Assessment

Please read the assessment requirements below.

Online Assessment Quiz

You will be able to access this online for this unit, you need to talk to your facilitator/teacher on how to access this resource.