This assignment is an individual assessment. The research and written submission should therefore be...

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This assignment is an individual assessment. The research and written submission should therefore be your own work. You will need to submit this assignment with the appropriate bar coded cover sheet declaring that it is your own work. An electronic copy of your bar coded cover sheet can be obtained following the instructions posted up on AUT Online.Required:You are required to research and answer the following three questions. Your answer to each question must be written on a separate sheet(s). The indicative word limit for each question is approximately XXXXXXXXXXwords.1. Define and explain the meaning of ‘control’ in the context of business combinations.  (3 marks)2. Explain the importance of determining the acquirer and acquisition date in accounting for business combinations (3 marks)3. Briefly define and explain for adjusting journals for unrealised profit on closing and opening inventory. (4 marks)Mark AllocationMarks will be given based on the followingResearch/Content/CoverageClarity of DiscussionQuality and referencing of materialsNote: Students are expected to use APA referencing.
	
Document Preview: This assignment is an individual assessment. The research and written submission should therefore be your own work. You will need to submit this assignment with the appropriate bar coded cover sheet declaring that it is your own work. An electronic copy of your bar coded cover sheet can be obtained following the instructions posted up on AUT Online.Required:You are required to research and answer the following three questions. Your answer to each question must be written on a separate sheet(s). The indicative word limit for each question is approximately XXXXXXXXXXwords.1.	Define and explain the meaning of ‘control’ in the context of business combinations. 							(3 marks)2.	Explain the importance of determining the acquirer and acquisition date in accounting for business combinations		(3 marks)3.	Briefly define and explain for adjusting journals for unrealised profit on closing and opening inventory.				(4 marks) Mark AllocationMarks will be given based on the followingResearch/Content/Coverage							Clarity of Discussion					Quality and referencing of materials	Note: Students are expected to use APA referencing.

Robert · Accepted Answer

1) Define and explain the meaning of ‘control’ in the context of business combinations. 
ANSWER:- 
Business combinations are the tractions in which the acquirers take all the control and powers of 
the business in his hands. Business enterprises shall undergo such combinations by using 
acquisition method (Thronton, 2011). Suppose assets are not necessary in the business than all 
the events are to be recorded accept the asset acquisition. Control is only obtained to acquirer 
only when more than fifty percent of voting right is there, agreement has been made regarding 
financial and operating policies, there has been power for selection and rejection of majority 
share holders , board of directors etc. control means that the person has the power to cast 
majority of votes at the board meetings. Sometimes an acquirer takes control from acquire 
without transferring all the legal requirements, business is an activity in which there is set of 
activities and long term and short term assets that provide full return to the investors in special 
kind of forms like dividends , costs and other long term benefits. Control means that an acquirer 
is now has all the responsibility for carrying on all the activities like inputs, outputs etc. a 
business combination is not form of joint venture nor it involves acquisition of assets which do 
not form part of business
2.

This assignment is an individual assessment. The research and written submission should therefore be your own work. You will need to submit this assignment with the appropriate bar coded cover sheet...

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