Prepare financial reports for corporate entities

Important notice to students:

Students must submit assessments by due dates; otherwise, they will incur a fine of $50.00.per Unit (if submitted within one week after the due date) followed by $100.00 per Unit (if submitted within two weeks after the due date) and $150.00 per Unit (if submitted within one month after the due date). If you don’t submit assessments even by one month, or do not pay fines, HIBT may report to DIBP as against non-completion of assessments and non-payment of fees and fines, and it may affect your student visa.

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ASSESSMENT SUMMARY / COVER SHEET

This form is to be completed by the assessor and used a final record of student competency.

All student submissions including any associated checklists (outlined below) are to be attached to this cover sheet before placing on the students file.

Student results are not to be entered onto the Student Database unless all relevant paperwork is completed and attached to this form.

Please attach the following documentation to this form		Result S = Satisfactory NS = Not Satisfactory NA = Not Assessed
Assessment 1	q Balance sheet attached q Income tax calculations attached q Checklist attached	S \| NS \| NA
Assessment 2	q Cash flow statement attached q Statement of financial position attached q Statement of financial performance attached q Checklist attached	S \| NS \| NA
Assessment 3	q Business legal requirements report attached (group report) q Legislation and accounting standards report attached (individual report) q Checklist attached	S \| NS \| NA
Assessment 4	q Online Assessment	S \| NS \| NA

Final Assessment Result for this unit

C / NYC

*Administrative use only*
Entered onto Student Management Database	q __________________ Date	_______________ Initials

ASSESSMENT 1 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

For this assessment, students are to prepare updated financial records for the acquisition of RDL Ltd by TMH Ltd (Information found in Appendix 1). Students are to complete the Balance sheet ending 30 June 2013 for TMH Ltd which doesn’t include merger details. Students must then use the information provided to complete the Balance sheet for the new parent company following the merger,

Students are to prepare an updated balance sheet following the acquisition of RDL Ltd. by TMH Ltd. Students must:

Undertake face to face or phone consultation with your instructor, who will role-play the part of management of TMH Ltd. to define any procedures you must follow as well as set timeframes and deadlines.
Complete the worksheet provided in Appendix 1.
Complete the year ending 30 June 2013 Balance sheet for TMH using the information provided.
Systematically review, code and classify data as required and check for accuracy following policies set by your instructor and complying with AASB standards.
Undertake conversion & consolidation procedures to compile the data (Using the merger method) and make comments as to appropriateness and ensure they meet AASB standards
Calculate the amount of income tax for TMH for the year ending 30 June 2013. Take into consideration assessable and non-assessable items. Including performing the following tasks:

Calculate the amount of income tax expense for the year, using the derivative method that complies with Accounting Standard AASB1026/AAS28
State the Profit before income tax
State the Accounting Profit
State the Profit after income tax.

ASSESSMENT 2 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

Students are required to complete financial reports for the reportable entity of Atlanta Company (using the information provided in Appendix 2). The following must be completed:

Students must utilise the data provided to undertake the following:

Prepare comprehensive income statement.
Prepare Statement of Change in Equity
Prepare Statement of Financial Position
Prepare Cash Flow Statement.
Students are required to provide notes for the important information as per AASB standards.
Appropriate diagrams and graphs must be included as well as supporting data as necessary
Students must ensure they comply with organisational policy and AASB standards for their report presentation (this information should be sought from your instructor who again will role-play the part of Atlanta management

This assessment is due on: __________________________________

ASSESSMENT 3 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

This is a 2-part assessment with the first part involving research work and the second part involving written assignment.

Part 1: (1,500 words)

For this part, students are required to work in small groups of 2-4 to undertake the following research assignment. Students must research into business legal requirements as well as financial and taxation requirements in regards to business reporting requirements and business mergers / acquisitions. This report should include:

Discuss the differences in calculation of income tax based on the PAYG system and the Income Tax Assessment Act
Discuss what constitute taxable transactions, and what legislation governs this
Provide information regarding the impact the AASB has on reporting requirements to businesses
Discuss the legal implications that affect businesses – research into different State and Federal legislation and comment on each

Part 2 (800 words)

For this assignment, students are required to discuss why it is necessary to have the legislation and accounting standards discussed in Part 1. Students should concentrate on the following:

Who is being protected by the legislative / standards?
What do these laws / standards promote?
What do these laws / standards prevent?
How do these laws / standards promote ethical accounting?

Both parts should be submitted together as a 2,300 word assignment.

Appendix 1:

On 1st July, 2014, TMH Ltd. acquired all the share capital of RDL Ltd.

At that date the equity of RDL was:

Share Capital $60,000

General Reserve $10,000

Retained earnings $10,000

Additional information

During the year ended 30 June, 2016:

TMH Ltd sold goods to RDL for $20,000
Unrealized profit in the inventory:

At 1st July 2015, $1,000
At 30 June, 2016, $700

On 1st January, 2016, RDL Ltd. sold an item of plant to TMH Ltd. for $20,000. The book value of the plant at the date of sale was $16,000. TMH Ltd depreciates plant at 15% per annum on cost.
TMH Ltd charged RDL Ltd a management fee of $7,000 for the year ended 30 June, 2016.
Goodwill is tested annually for impairment goodwill has been impaired by $5,000 for the year ended 30 June, 2016.

Consolidation worksheet 30 June 2016	TMH Ltd	RDL	Elimination	Consolidation Statement
			DR.	Cr
	$	$	$	$	$
Sales	330,000	240,000
Inventory 1-7-2015	30,000	20,000
Purchase	180,000	110,000
	210,000	130,000
Inventory 30-6-2016	40,000	20,000
Cost of goods sold	170,000	110,000
Gross profit	160,000	130,000
Operating expenses	113,000	94,000
	47,000	36,000
Add: Profit on sale of plant	–	4,000
Management fee received from RDL	7,000	–
Dividend received from RDL	4,000	–
Profit before tax	58,000	40,000
Less: Income tax expenses	10,000	18,000
Profit	48,000	22,000
Retained earnings 1-7-2015	20,000	16,000
Available for appropriation	68,000	38,000
Appropriation:
Interim dividend paid	8,000	4,000
Declared final dividend	10,000	6,000
General reserve	10,000	4,000
Total appropriation	28,000	14,000
Retained earnings 30-6-1016	40,000	24,000
Share capital	200,000	60,000
General reserve	72,000	15,000
Non-current liabilities	2,000	16,000
Current liabilities	56,000	27,000
	370,000	142,000
Share in RDL Ltd	110,000	–
Other non-current assets	150,000	90,000
Inventory	46,000	20,000
Other current assets	64,000	32,000
Goodwill on consolidation	–	–
Accumulated impairment- goodwill
	370,000	142,000

Required: Complete the consolidation worksheet

Students should use appropriate tax rate as stated by ATO for their tax calculations.

Appendix 2

You are provided the following trial balance of Atlanta Company Limited. This is just draft prepared by your accountant where company has provided the additional information that need to be incorporated in your final financial report.

Atlanta Company Limited Trial Balance
	2015		2016
	Debit	Credit	Debit	Credit
Cash at bank	17,560		65,880
Call on deposit	–		200,000
Account receivable	86,810		91,590
Commission income accrued	400		600
Inventory	77,520		73,190
Land and building	250,000		210,000
Accumulated depreciation- Building		14,000		19,400
Motor vehicle	35,000		60,000
Accumulated depreciation		7,900		20,800
Plant	50,000		40,000
Accumulated depreciation		15,500		19,800
Account payable		55,860		59,440
Accrued salaries and wages		790		1,030
Taxation payable		21,300		35,920
Dividend payable		30,000		40,000
Debenture		–		100,000
Share capital		300,000		400,000
Retained earnings		21,940		21,940
Sales		675,000		759,220
Cost of goods sold	350,000		386790
Commission income received		–		3,030
Salaries and wages	157,860		197,800
Superannuation	15,000		7,900
Motor vehicle expenses	30,000		14,700
General expenses	20,140		18,300
Depreciation- Building	4,000		5,400
Depreciation- Motor vehicle	11,000		12,900
Depreciation- Plant	5,000		6,800
Advertising expenses	2,000		500
Bad debts	5,000		2,310
Income tax expenses	25,000		35,920
Total	1,142,290	1,142,290	1,480,580	1,480,580

Additional information for the June end 2016.

Cost of goods sold of June end 2016 in above trial balance is consist of

online working

Wednesday, 8 August 2018