Australian School of Business Accounting ACCT 5942 CORPORATE ACCOUNTING AND REGULATION Course Outline Semester 1‚ 2014 Part A: Course-Specific Information Please consult Part B for key information on ASB policies (including those on plagiarism and special consideration)‚ student responsibilities and student support services. Table of Contents PART A: COURSE-SPECIFIC INFORMATION 1 1 STAFF CONTACT DETAILS 1 2 COURSE DETAILS 1 2.1 Teaching Times and Locations 2.2 Units of Credit
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Eliminations Introduction In addition to the basic elimination entries that are needed to eliminate the equity in subsidiary companies during consolidation‚ there are specific types of events that must also be eliminated. The intercompany transactions−such as sales of inventory or other assets‚ subsidiary stock transactions‚ or intercompany bond transactions−that require special attention during the consolidating process are overviewed in this module. Elimination Entries When preparing financial
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• Consolidation journals are posted into the consolidation worksheet in “adjustment” columns as follows: Extract only Parent P Ltd. $’000 Subsidiary S Ltd. $’000 Adjustments DR Lecture 9 part b Consolidation: Wholly owned subsidiaries Prepared by Emma Holmes and Rick Newby Land Invt in S Ltd Receivables Cash 400 120 200 40 760 150 Share capital Retained earnings Creditors 500 160 100 760 100 20 50 170 Cons. Balances CR XX XX XX
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TUTORIAL 1 – BUSINESS COMBINATION SUBMISSION DATE: QUESTION 1 On 1 January 2014‚ Moon Bhd paid RM700‚000 cash‚ issued a three year 6% note payable with a face value of RM1‚500‚000 and 100‚000 ordinary shares with a par RM1.00 to acquire 70% interest in Star Bhd. Moon Bhd ordinary share has a market value of RM2.60 per share on that date. Moon Bhd also issued 18‚000 of its shares for other direct costs of the acquisition and total cost of registration for all the above ordinary shares was RM40
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consolidated financial statements (CFS) when an entity controls one or more other entities. 2 IFRS 10 – OBJECTIVE(STANDARDS) Requires a parent entity to present CFS Defines the principle of control and establishes control as the basis for consolidation Set out how to apply the principle of control to identify wheteher an investor controls an investee and therefore must consolidate the investee Set out the accounting requirements for the preparation of CFS 3 KEY DEFINITIONS CFS
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Preparation of Consolidated Statement of Financial Position 1 The consolidation process • Before consolidating‚ it may be necessary to adjust subsidiary’s financial statements where: 1. The subsidiary’s end of reporting period is different to the parent’s. In such cases the subsidiary is required to prepare adjusted financial statements as at the parent’s reporting date. 2. The subsidiary’s accounting policies are different to the parent’s. In such cases the subsidiary is required to
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Consolidation and IFRS: an introduction Academic year 2010/2011 Patrice Schumesch Sebastian Harushimana Table of contents (1/4) Introduction - Why IFRS ? - General principles Measurement of assets and liabilities - Formation expenses - Intangible assets - Property‚ plant & equipment - Leases - Impairment of assets Slide 2 Consolidation and IFRS: an introduction Table of contents (2/4) Measurement of assets and liabilities (cont’d) - Government grants - Inventories and
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Practical Questions (68 marks) Suggested time 122 minutes 1. Liquidation: (10 marks) 2. Business combinations: (14 marks) 3. Re-valuation of Non- current asset: (10 marks) 4. Consolidation: (8 marks) 5. Inter-entity transactions: (16 marks) 6. Equity accounting: (10 marks) No worksheets are required for the consolidation question. Therefore use general journal entries. (No narrations) There is a high failure rate for students who sit a “Special” Exam. I am not sure why? (Note special exams are
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A guide to Consolidated accounts A SIMPLE GUIDE TO CONSOLIDATED ACCOUNTS This is a basic guide prepared by the Technical Advisory service for members and their clients. It is an introduction only and should not be used as a definitive guide‚ since individual circumstances may vary. Specific advice should be obtained‚ where necessary. Requirement to Prepare The Companies Act 2006 gives exemption from the requirement to prepare group accounts to small groups but not medium sized groups
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apply the standards for comprehensive income and equity. Comprehensive income is a combination of net income plus or minus all items contained in other comprehensive income for a reporting period. It includes all changes to equity resulting from transactions and other events and circumstances in a reporting period except for investments by and distribution to owners. IAS 1 describes the standards for the presentation of equity and changes in equity during a reporting period. Explain how IFRS recommendations
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