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Executive Summary
An international board that sets up IFRS is known as IASB. It was found in the year 2001. The previously formed board for this purpose was IASC who is responsible for developing IFRS also known as international accounting standards. IFRS Foundation was formed in the year 2001 and was previously known as IASF which Is International financial reporting standard. This is not mandatory for all the companies across countries for technical reasons, but most of the countries adopt partial IFRS and use amended version of IFRS in their country.
AASB 3 governs the disclosure requirements for the acquisition of businesses and the journal entries and calculations of business combinations.
There are two types of Proprietary companies in Australia – Large and Small. There has been an amendment in the definition of Large and small proprietary company. A small Proprietary company is the company whose revenue is less than $50million or whose gross value of consolidated asset is less than $25 million or who has less than 100 employees. If the all the above limits are crossed the company becomes large proprietary company.
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:
VIVA LEISURE 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.
    4,5,6
    Assessment Task Part B:
KELLY PARTNERS GROUP HOLDINGS 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.
    8
    Conclusion
    9
    References
    10
Introduction
Australia has adopted IFRS in the year 2005 with the guidance of Financial reporting council. All the technical issues in the implementation of IFRS are identified and formed to the IASB and a solution for the Standard are found and reported in the form of Guidance note. Certain technical issues are also reported by the Public Sector Accounting standard board. Technical issues are also identified by companies and individuals.
The Setting up process of accounting standard in Australia is with the approval in the parliament. The whole process happens in multiple stages from refe
ing technical issue, creating draft, sharing draft, discussion, reviews and opinions of businesses, CPA, Scholars, and final draft that is enacted in the form of Accounting standard or guidance note. IFRS ensures uniformity in the standard across various countries and their companies which helps in doing better comparative analysis for economies of the world and there is better adaptability in terms of economies around the world.
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
AASB identifies any technical issues as reported by private, public individual, proprietary entities, Scholars ETC. and interprets the issues in the existing standard and in turn defines the interpretation issues in the standard.
Identification of the issue happens in turn with the discussions within various organizations, Australian Taxation office, Australian Stock exchange and such other authorities. In case where technical issue is identified reviewing its relevance, reliability, interpretation, reporting is an important stage in setting up standard.
To form an accounting standard a detailed research is ca
ied to understand the interpretated meaning of a standard, its international judgments and meaning as understood by other countries. Various companies and its stakeholders are invited to review the draft of changes in accounting standard for review, comments, changes, and discussions.
Discussing with various stakeholders of the company in the form of panel discussions and opinions by key management personnel on the interpretation of the standard as drafted by the authorities.
The final draft proposal of the standard is issued by AASB which contains advantages, issues faced by the company, its interpretation, and minutes of all the meetings held for this purpose. After the discussions at various stages, if there is no further difference of opinion or shortcomings, final note on issue of standard, its pronouncement, changes are documented and used for decision making. Then it is produced in front of board for acceptance, in case changes required, a new draft after changes is issues. Further there is no objection then the final draft of standard is issued and is passed with majority in the board. This final draft is the final copy of accounting standard issued and formed. The copy of the same is shared with international organizations, CPAA, ASIC, APRA, CAANZ, IPA.
IFRS was implemented in Australia on 1st January 2005 with the direction of Financial reporting council and these standards are issued by IASB.IFRS are issued in many countries to ensure reliability of data across countries and to maintain uniformity in financial statements of the companies across various countries. The reason for non-adoption is many countries is because it is costly and requires professional guidance and expertise for interpretation and understanding. IFRS is not easily understood by accountants or individual business owners. In many countries even the political environment is not in favor of IFRS as it increases compliance burden and reportability. Another shortcoming in implementation of IFRS is the financial year of every country is different which leads to confusion in the interpretation and understanding the meaning of the standard. To enable smooth functioning, every country must form its own standard from the original IFRS standard which is country specific draft of IFRS. One of the primary reasons why IFRS is not mandatory...