Corporate and financial accounting
Assessment Task: (words 2000)
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) Ca
ying 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?
(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:
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 XXXXXXXXXXwords 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
ief 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 – Harvard style referencing.