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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...

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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
eporting, 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
eporting;
• Critically analyse and interpret the financial statements and other
disclosures produced by Australian companies and corporate groups;
XXXXXXXXXXULO 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
ï‚· All work must be submitted on Blackboard by the due date along with a
completed Assignment Cover Page.
ï‚· 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.
ï‚· 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.





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HA2032 Corporate and Financial Accounting Individual Assignment T2 2020

Assignment Specifications
Purpose:

This assignment aims to develop students’ understanding of corporate reporting, disclosure,
eporting 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
eporting requirements?

Part B

Business Combination / Acquisition analysis

Collect the latest annual reports of two ASX listed companies. Each of the two companies must have
eported 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?
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 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
aised 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 – 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
eaches. If you have any questions about Academic Integrity issues
elated 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
eaches 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 fa
ication 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) Ca
ying 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 Day Sep 10, 2021 HA2032

Solution

Riddhi answered on Sep 21 2021
151 Votes
2 | Page
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 proprietary 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 ca
ying 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 ca
ying 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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