Detail of company:

Getswift Ltd is an Australian newly listed company which provides a software distribution solution. This is the same company that was used in the Individual assignment. It is expected that students research this company beyond just the financial statements (especially for Part B)

Pursuit Pty Ltd has been a target customer of GetSwfit's for many years. It is a large distribution company which services supermarkets. The acquisition of Pursuit would allow GetSwift to increase its scale and penetration into the market. The actual trading business of Pursuit is much larger than Getswift but it has been operating as a family run private business. The directors are John and Ellen Pursuit who are selling their business to retire. For the last few years, their son Steven (an ex-partner of PWC) has been running the business and he will continue to do so after the sale. He has primarily been responsible for the growth and success of the business in the last few years. The shareholder of Pursuit is currently the Pursuit's family trust which will also acquire the shares in Getswift in the transaction.

PART A

The focus of this assignment is on incorporating a consolidated entity into the 2016/2017 completed financial statements of GetSwift Limited using Excel as your tool.

Details of the acquisition of Pursuit Pty Ltd

Getswift has acquired 100% of the shares of Pursuit Pty Ltd for $10.5m on the 30th June 2017 which is to be paid as $4,000,000 in cash and $4,000,000 in newly issued shares on 30th June 2017 and the balance in cash on the 30th September 2017. As at the 30th June, the equity and assets of Pursuit Pty Ltd is as follows

Share Capital General reserve Retained earnings Cash

Plant (Cost $3m)

$ 500,000

$ 250,000

$6,000,000

$4,250,000

$2,500,000 Carrying value (Fair value of $4,500,000)

In addition, Pursuit Pty Ltd had an unrecorded trademark with a fair value of $1,000,000. Assume a 30% tax rate.

Required :

Getswift Ltd will acquire Pursuit Pty Ltd as part of a growth strategy. This will require a new consolidated

set of accounts to be prepared incorporating this acquisition and consolidation as at 30/6/17. At a minimum, your consolidation incorporating Pursuit Ltd should include

1. a)Consolidation journals
2. b)Consolidated worksheet
3. c)Statement of Financial Position
4. d)Statement of Profit and Loss and Other Comprehensive Income
5. e)Consolidated Statement of Changes in Equity