HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HA2032 Corporate and Financial Accounting Individual Assignment T2 2020 Assessment Details and Submission Guidelines Trimester T2 2020 Unit Code HA2032...

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HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HA2032 Corporate and Financial Accounting Individual Assignment T2 2020 Assessment Details and Submission Guidelines Trimester T2 2020 Unit Code HA2032 Unit Title Corporate and Financial Accounting Assessment Type Individual Assignment Assessment Title Corporate reporting and disclosure requirements in Business Combination Purpose of the assessment (with ULO Mapping) This assignment aims to develop students’ understanding of corporate reporting, disclosure, reporting entity concept and the implication of being classified as a reporting entity. This assignment also develops an understanding of students on accounting and disclosures for business combinations The HA2032 Unit Learning outcomes addressed in this assessment are: • Demonstrate an understanding of the role of the Corporations Act, sources of authority, and accounting standards in the governance of companies and requirements for financial reporting; • Critically analyse and interpret the financial statements and other disclosures produced by Australian companies and corporate groups; (ULO 1, 3). Weight 25 % of the total assessments Total Marks 25 Word limit 3000 words ±300 words Due Date Assignment submission: Final Submission of individual Assignment: 11:59 pm Wednesday, 23 September 2020, Week 10. Late submission incurs penalties of five (5) % of the assessment value per calendar day unless an extension and/or special consideration has been granted by the lecturer prior to the assessment deadline. Submission Guidelines  All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page.  The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.  Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style. Page 2 of 8 HA2032 Corporate and Financial Accounting Individual Assignment T2 2020 Assignment Specifications Purpose: This assignment aims to develop students’ understanding of corporate reporting, disclosure, reporting entity concept and the implication of being classified as a reporting entity. The students will also analyse the disclosure on business combination made by two selected companies. Assessment Task: Part A Accounting Standard Setting, Regulation and Disclosure ACCOUNTING STANDARD SETTING (i) Do your own research and critically explain how the Australian Accounting Standards Board take part in the global accounting standard setting process (i.e. in setting IFRS). Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the member countries of IASB? REPORTING ENTITY (ii) Do your own research and critically examine the concepts of small proprietary company, large proprietary company and reporting entity. What are the implications of being classified as either one of these three types of companies in terms of compliance and reporting requirements? Part B Business Combination / Acquisition analysis Collect the latest annual reports of two ASX listed companies. Each of the two companies must have reported Business Combination as per AASB 3 (Many of the ASX 300 Companies report business combinations). Carefully read the note disclosure relating to the Business Combination AASB 3. Answer the following: (i) How many business combinations did the company report? (ii) What was the fair value of consideration paid? (iii) What are the components of acquisition costs, e.g. cash consideration and noncash consideration? (iv) What was the fair value of net identifiable assets acquired? (v) Recognised value of each class of assets, liabilities and contingent liabilities (vi) Carrying value of each class of assets, liabilities and contingent liabilities (vii) How much goodwill or gain on bargain purchase has been recorded? (viii) Factors that contributed to the recognition of goodwill or gain on bargain purchase (if disclosed) (ix) What was the amount of goodwill as percentage of total consideration paid? Page 3 of 8 HA2032 Corporate and Financial Accounting Individual Assignment T2 2020 (x) What was the amount identifiable intangible assets as a percentage of total consideration paid? (xi) Write a comparative analysis on the two companies’ disclosure on business combination. Assignment Structure should be as the following: The assignment structure must be as follows: Holmes Institute Assignment Cover Sheet – Full Name, Student No., Campus, Session No. Executive Summary  The Executive Summary appears as a short paragraph on the first page of the report.  The Executive summary should be concise and not involve too much detail.  It should be a summary of the main points only, the conclusions and analysis of the report.  Write the Executive Summary after the report is completed, and once you have an overview of the whole report. 50 - 100 words is recommended Table of Contents Page – This needs to show a logical listing of all the sub-headings of the report’s contents. (Note this is excluded from the total word count.) Introduction – A short paragraph which includes background and/or scope and the main points raised in order of importance. There should be a brief conclusion statement at the end of the Introduction. Main Body Paragraphs with numbered sub-headings – Detailed information which elaborates on the main points raised in the Introduction. Each paragraph should begin with a clear topic sentence, then supporting sentences with facts and /or relevant information (evidence) and finish with a concluding sentence at the end. Conclusion – A logical and coherent evaluation based on a thorough and objective assessment of the work performed. References – Credible Academic sources must be used, such as peer reviewed journals or authoritative textbooks. Any referencing style can be followed, but should be consistent. Academic Integrity Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard. Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment. Page 4 of 8 HA2032 Corporate and Financial Accounting Individual Assignment T2 2020 Table 1: Six Categories of Academic Integrity Breaches Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism. Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised. Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence. Impersonation Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination. Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment. Data fabrication and falsification Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images. Source: INQAAHE, 2020 Marking Criteria Marking criteria Weighting Executive Summary/Abstract 1% (1 mark) List of content & overall presentation of the assignment 1% (1 mark) Introduction 1% (1 mark) Part A: Accounting Standard Setting, Regulation and Disclosure Do your own research and critically explain how the Australian Accounting Standards Board takes part in the global accounting standard setting process (i.e. in setting IFRS). Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the member countries of IASB? 5% (5 mark) Do your own research and critically examine the concepts of small proprietary company, large proprietary company and reporting entity. What are the implications of being classified as either one of these three types of companies in terms of compliance and reporting requirements? 5% (5 mark) Part B: Disclosure on Business Combination Collect the latest annual reports of two ASX listed companies. Each of the two companies must have reported Business Combination as per AASB 3. Carefully read the note disclosure relating to the Business Combination AASB 3. Answer the following for each of the two companies: (i) How many business combinations did the company report? 0.5% (0.5 mark) (ii) What was the fair value of consideration paid? 0.5% (0.5 mark) (iii) What are the components of acquisition costs, e.g. cash consideration and noncash consideration? 0.5% (0.5 mark) (iv) What was the fair value of net identifiable assets acquired? 0.5% (0.5 mark) (v) Recognised value of each class of assets, liabilities and contingent liabilities 0.5% (0.5 mark) Page 5 of 8 HA2032 Corporate and Financial Accounting Individual Assignment T2 2020 (vi) Carrying value of each class of assets, liabilities and contingent liabilities 0.5% (0.5 mark) (vii) How much goodwill or gain on bargain purchase has been recorded? 0.5% (0.5 mark) (viii) Factors that contributed to the recognition of goodwill or gain on bargain purchase (if disclosed) 0.5% (0.5 mark) (ix) What was the amount of goodwill as percentage of total consideration paid? 0.5% (0.5 mark) (x) What was the amount identifiable intangible assets as a percentage of total consideration paid? 0.5% (0.5 mark) (xi) Write a comparative analysis on the two companies’ disclosure on business combination.
Answered Same DaySep 10, 2021HA2032

Answer To: HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HA2032 Corporate and Financial Accounting Individual...

Riddhi answered on Sep 21 2021
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Executive Summary
IASB is an international board that plays an especially important role in setting up IFRS. IFRS Is International financial reporting standard that is not mandatory for all the companies for technical reasons, but most of the countries adopt partial IFRS and use amended version of IFRS in their country.
In Australia Proprietary company are of two types Small and large. As per the recent definition if Revenue < $50 million or gross value of consolidated asset < $25 million or Employees < 100 it is a small pro
prietary company otherwise large proprietary company.
Business combinations are governed under AASB 3 which deals with the disclosure requirements in case of acquisition of businesses.
Table of Contents
    Introduction
    2
    Assessment Task Part A: Process of setting up accounting standard in Australia
    2
    Assessment Task Part A: IFRS not mandatory for all countries
    3
    Assessment Task Part A: Concepts of Proprietary company and reporting entity
    3
    Assessment Task Part A: Compliance and reporting requirements of Proprietary and reporting entity.
    4
    Assessment Task Part B:
DOMAIN HOLDING AUSTRALIA LIMITED COPANY
Company profile
Business combinations, fair value of net identifiable assets, cost of acquisition
Class of assets, liabilities and contingent liability at fair value and carrying value
Goodwill or Bargain purchase and its factors
Percentage calculation of goodwill and net identifiable intangible asset to total consideration separately.
    4,5,6
    Assessment Task Part B:
WAGNERS HOLDING COMPANY LIMITED
Company profile
Business combinations, fair value of net identifiable assets, cost of acquisition
Class of assets, liabilities and contingent liability at fair value and carrying value
Goodwill or Bargain purchase and its factors
Percentage calculation of goodwill and net identifiable intangible asset to total consideration separately.
    6,7,8
    Comparative Analysis on disclosure of business combinations of both companies.
    7
    Conclusion
    8
    References
    8
Introduction
The process of setting up accounting standard in Australia is explained with the process of approval in the parliament. The process of setting up a new accounting standard requires various approvals from sharing draft to amendments to its approval. IFRS are global accounting standards formed to maintain uniformity in maintaining finances and easy comparative between financials all around the world. This standard is not mandatory as adaptability is all countries are different.
We are also discussing in dept the types of proprietary company and reporting entity and their definition. In the summary we shall also discuss the reporting and compliance requirements of these entities.
We shall discuss business combinations as governed by AASB 3 with example of two companies and doing in dept study of their annual report for the year ended 30th June 2019 evaluating their acquisitions, considerations, net assets etc.

Main body paragraphs
Part A
i) Process of setting up accounting standard in Australia
The role of AASB is to identify any technical issue faced by the profit entities and are there any issues with interpretation and meaning of the various terms in the normal course and is there a need to define them.
To identify technical issue, there are various discussions between ATO, Australian Organizations, ASX and other corporate authorities. Once, a technical issue is identified its relevance, reliability, interpretation, reporting is discussed with companies and corporate authorities for any unofficial changes or suggestions.
A detailed research is conducted in respect of the issue and interpretations and decisions is read in respect of judgments or standards formed by other countries. Stakeholders of corporate entities are consulted to review exposure drafts, invitations to comment, draft interpretations and discussion papers.
The methods used for discussion with stakeholders is calling for a group of company key management personnel, inviting panel discussions, discussion on interpretation of the draft document.
AASB will draft an official proposal of the project that contains its benefits, issues faced by companies about interpretation and minutes of the meeting for the same is documented. Once, all the above stages have passed and there are no shortcomings in the documents and all the changes are made, a pronouncement and note on issue of standard is documented in the Board Agenda for decision making. If there is no objection and the proposal is accepted is accepted by all or majority of board members a standard is formed. The copy of new accounting standard is then shared with international organizations and implemented and reviewed by the authorities of ASIC, APRA, CPAA, CAANZ, IPA and in case of any amendments as required by above authorities then a clarification or a guidance will be issued in that regard.
IFRS are the standards issued by International Accounting Standard Board. IFRS in many countries are adopted to ensure that there is comparability and reliability between financials of companies in two different countries. The adoption of IFRS in developing economies can be very costly and complex and may require lot of training and professional help. Socioeconomic and political factors may not be favorable for developing economies. The financial year for the all the countries...
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