Accounting Standard Setting, Regulation and Disclosure

ACCOUNTING STANDARD SETTING

(i)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) 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?

Business Combination / Acquisition analysis

Collect the latest annual reports of two ASX listed companies "Quantas airways ltd and Afterpay company". Each Quantas airways ltd and Afterpay company must have reported Business Combination as per AASB 3. 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) Carrying 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 comparative analysis on the two companies' disclosure on business combination.