Hi, are you able to assist with the questions contained in the attachment, namely, questions one and two?

Thanks

Assignment 1 This task is compulsory Assessment Task: Practical exercises and essay type question(s). Submission Date and Time: 31 March, 2016 23:59pm Value: 20% of unit mark Word Length: 2000 words Learning Outcome(s): 1-3 Marking criteria: Assignment 1 While this assignment relates to the following two learning outcomes (LOs) of the unit: 1. demonstrate professional understanding of how to read and interpret/analyse contemporary financial reports of groups of companies; 2. critically analyse/interpret corporate group structures and prepare the following types of consolidated financial statements: consolidated statement of comprehensive income (Profit and Loss) and consolidated statement of financial position (Balance Sheet). You are expected to demonstrate the ability to produce, describe, analyse, and/or explain the underlying concepts and accounting frameworks to which the assignment questions are linked. The following marking criteria and weightings will be used: Completion of acquisition analysis under the method(s) suggested and preparation of appropriate journal entries after the acquisition. (44%); Preparation of appropriate consolidation journal entries and worksheet for consolidation (36%); and Adequate discussion on the specified topic or issue raised by providing relevant and reasonable opinions/comments. There must have sufficient analysis of reporting practices of the selected companies/entities in compliance with the relevant accounting standards along with a solid comparison between the companies. Also requires logical flow from introduction to conclusion according to academic standards of essay writing. (20%) Question 1: (30 marks) V Ltd made a takeover bid for all the issued voting shares of M Ltd offering 3 V Ltd shares for every 2 M Ltd shares (i.e. at 3:2 script offer/share exchange). The offer from V Ltd was accepted by 90% of the shareholders of M Ltd. At the acquisition date at 1 January 2015, the following information is available: M Ltd at 31 December 2014 $'000 Share Capital (200 000 shares) 200 Capital Profits Reserve 300 Retained Profits 150 Total Equity 650 Market value of each company's shares at 1 January 2015 V Ltd $3.20 M Ltd $4.00 In M Ltd's accounting records, land was stated at $160 000 below its cost to the economic entity (i.e. fair value at acquisition date). This is to be accounted for as a consolidation adjustment. The rate of company income tax is 30%. Required: (i) Complete the acquisition analysis on 1 January 2015 for V Ltd's investment in M Ltd as required by AASB3 and determine the amount of goodwill or gain on bargain purchase following the (a) fair value/full goodwill method and (b) proportional/partial goodwill method. (ii) Prepare the acquisition journal entries as required by AASB10 on 1 January 2015 under each method in (i). Question 2: (50 marks) The financial statements of A Ltd and Z Ltd at 30 June 2011 are set as follows: Statement of Comprehensive Income A Ltd Z Ltd $ $ Income: Opening inventory Purchases Closing inventory 44 550 64 800 1 076 907 756 428 63 600 41 700 Cost of sales 1 057 857 779 528 Sales revenue 1 445 100 1 113 300 387 243 333 772 Other Income 66 000 - Dividend income 33 750 - Administration fee 32 250 - 519 243 333 772 Expenses: 312 543 222 772 Admin and other expenses 185 319 142 567 Depreciation 29 040 23 460 Other expenses 98 184 56 745 Profit before tax 206 700 111 000 46 431 36 630 160 269 74 370 60 000 45 000 100 269 29 370 405 000 225 000 - 75 000 166 755 154 170 - 139 545 Accounts payable 38 505 44 319 Taxation payable 46 431 36 630 Dividends payable 42 000 30 000 698 691 704 664 Non-current assets 232 016 588 902 Investment in Z Limited 257 730 - Gross profit Tax exp. Profit/surplus after tax Dividends proposed & paid Retained earnings for the year Statement of Financial Position Equity and liabilities: Contributed capital Revaluation surplus Retained earnings Long-term loan Assets: Inventory 63 600 41 700 Accounts receivable 50 175 68 413 Dividends receivable 22 500 - Cash 72 670 5 649 698 691 704 664 Additional information: a) On 1 July 2007, A Ltd acquired 75% of the contributed equity of Z Ltd. At that date the equity of Z Ltd comprised: Contributed equity $225 000 Retained earnings $55 140 Revaluation reserve $43 500 b) At the time acquisition, all assets were considered to be fairly valued. c) During the year, Z Ltd made sales to A Ltd amounting to $126 750; Z Ltd had always sold goods to A Ltd at a mark-up of 25% on cost. d) Inventory at 30 June 2011 was as follows: A Ltd $63 600 Z Ltd $41 700 e) Of the inventory A Ltd had on hand at 30 June 2010, $18 900 was purchased from Z Ltd. f) Of the inventory A Ltd had on hand at 30 June 2011, $23 100 was purchased from Z Ltd. g) Z Ltd's administrative expenses include $32 250 paid to A Ltd for providing management and administrative service for the year. h) On 30 June 2011, the directors decided that goodwill arising on the acquisition on A Ltd had been impaired by 40%. i) On 30 June 2011, a final dividend amounting to $42 000 was provided by A Ltd, while $30 000 was provided by Z Ltd, and the decision to pay the dividend communicated to shareholders on that date. A Ltd has recognised its share of the dividend receivable from Z Ltd in its financial statements on 30 June 2011. j) Tax is charged at a rate of 40%. Required: (a) Complete the acquisition analysis on 1 July 2007 for A Ltd's investment in Z Ltd as required by AASB3 and AASB10 and determine the amount of goodwill or gain on bargain purchase following the partial/proportional goodwill method. (b) Prepare the acquisition journal entries on 1 July 2007. (c) Prepare all consolidated journal entries including non-controlling interest and their posting to consolidated worksheet for the year ended 30 June 2011 for consolidation purpose of A Ltd and Z Ltd. Question 3: (20 marks) Report Writing on 'Financial Reporting Disclosures in Australian Corporate Sector' (Word length: maximum 1 000 words and at least 3 references) Collect a published annual report (year-end between 2014-2015 periods) for two Australian parent companies listed in the Australian Stock Exchange (ASX). The company web-sites can be obtained from the web-site of the ASE at http://www.asx.com.au/asx/research/listedCompanies.do?coName=Q or any other online resources. Identify their 'consolidated financial statements' reported in the annual reports. Briefly summarise on goodwill method followed, revaluation of assets, impairment of goodwill, non-controlling interests (NCI) and their sharing of any goodwill if applicable. Critically evaluate the financial reporting and disclosure followed by each parent company whether consistent with the requirements of the AASB 3 and AASB 10 for the users of general purpose financial reports. In your essay, identify the strengths and weaknesses of their reporting and disclosure as well as major differences along with your recommendations how to minimise reporting and disclosure gaps between them. Attach a scanned copy of the 'consolidated financial statements' only, no need to attach 'Notes'. Do not attach the entire annual report. NOTE: presentation and referencing are important. Specific and descriptive criteria to follow: (1) There must be an introduction and conclusion section and references, if any, and a scanned copy of the 'consolidated financial statement' attached for both group of companies. (2) There must be a very brief discussion of the selected listed groups of companies (i.e. parents) and their subsidiaries operating activities. (3) Adequate discussion on consolidated financial statements components taken care of in the process of preparing in accordance with AASB 3 and AASB 10. A better understanding of concepts as well as group statements is expected. (4) There must be an analysis of reporting practices as in point (3) above whether AASB 3 and AASB 10 are properly followed or not. The strengths and weaknesses of reporting should be identified from the users' perspective. In evaluating reporting practices, any relevant comment or recommendation should be taken into account. (5) The reporting practices of both groups of companies as in point (3) above must be compared with a decision which group is in compliance with respective AASBs than the other and why and how more compliance is achievable. In evaluating reporting practices, any relevant comment or recommendation for each group should be taken into account. Assignment 1 This task is compulsory Assessment Task: Practical exercises and essay type question(s). Submission Date and Time: 31 March, 2016 23:59pm Value: 20% of unit mark Word Length: 2000 words Learning Outcome(s): 1-3 Marking criteria: Assignment 1 While this assignment relates to the following two learning outcomes (LOs) of the unit: 1. demonstrate professional understanding of how to read and interpret/analyse contemporary financial reports of groups of companies; 2. critically analyse/interpret corporate group structures and prepare the following types of consolidated financial statements: consolidated statement of comprehensive income (Profit and Loss) and consolidated statement of financial position (Balance Sheet). You are expected to demonstrate the ability to produce, describe, analyse, and/or explain the underlying concepts and accounting frameworks to which the assignment questions are linked. The following marking criteria and weightings will be used: Completion of acquisition analysis under the method(s) suggested and preparation of appropriate journal entries after the acquisition. (44%); Preparation of appropriate consolidation journal entries and worksheet for consolidation (36%); and Adequate discussion on the specified topic or issue raised by providing relevant and reasonable opinions/comments. There must have sufficient analysis of reporting practices of the selected companies/entities in compliance with the relevant accounting standards along with a solid comparison between the companies. Also requires logical flow from introduction to conclusion according to academic standards of essay writing. (20%) Question 1: (30 marks) V Ltd made a takeover bid for all the issued voting shares of M Ltd offering 3 V Ltd shares for every 2 M Ltd shares (i.e. at 3:2 script offer/share exchange). The offer from V Ltd was accepted by 90% of the shareholders of M Ltd. At the acquisition date at 1 January 2015, the following information is available: M Ltd at 31 December 2014 $'000 Share Capital (200 000 shares) 200 Capital Profits Reserve 300 Retained Profits 150 Total Equity 650 Market value of each company's shares at 1 January 2015 V Ltd $3.20 M Ltd $4.00 In M Ltd's accounting records, land was stated at $160 000 below its cost to the economic entity (i.e. fair value at acquisition date). This is to be accounted for as a consolidation adjustment. The rate of company income tax is 30%. Required: (i) Complete the acquisition analysis on 1 January 2015 for V Ltd's investment in M Ltd as required by AASB3 and determine the amount of goodwill or gain on bargain purchase following the (a) fair value/full goodwill method and (b) proportional/partial goodwill method. (ii) Prepare the acquisition journal entries as required by AASB10 on 1 January 2015 under each method in (i). Question 2: (50 marks) The financial statements of A Ltd and Z Ltd at 30 June 2011 are set as follows: Statement of Comprehensive Income A Ltd Z Ltd $ $ Income: Opening inventory Purchases Closing inventory 44 550 64 800 1 076 907 756 428 63 600 41 700 Cost of sales 1 057 857 779 528 Sales revenue 1 445 100 1 113 300 387 243 333 772 Other Income 66 000 - Dividend income 33 750 - Administration fee 32 250 - 519 243 333 772 Expenses: 312 543 222 772 Admin and other expenses 185 319 142 567 Depreciation 29 040 23 460 Other expenses 98 184 56 745 Profit before tax 206 700 111 000 46 431 36 630 160 269 74 370 60 000 45 000 100 269 29 370 405 000 225 000 - 75 000 166 755 154 170 - 139 545 Accounts payable 38 505 44 319 Taxation payable 46 431 36 630 Dividends payable 42 000 30 000 698 691 704 664 Non-current assets 232 016 588 902 Investment in Z Limited 257 730 - Gross profit Tax exp. Profit/surplus after tax Dividends proposed & paid Retained earnings for the year Statement of Financial Position Equity and liabilities: Contributed capital Revaluation surplus Retained earnings Long-term loan Assets: Inventory 63 600 41 700 Accounts receivable 50 175 68 413 Dividends receivable 22 500 - Cash 72 670 5 649 698 691 704 664 Additional information: a) On 1 July 2007, A Ltd acquired 75% of the contributed equity of Z Ltd. At that date the equity of Z Ltd comprised: Contributed equity $225 000 Retained earnings $55 140 Revaluation reserve $43 500 b) At the time acquisition, all assets were considered to be fairly valued. c) During the year, Z Ltd made sales to A Ltd amounting to $126 750; Z Ltd had always sold goods to A Ltd at a mark-up of 25% on cost. d) Inventory at 30 June 2011 was as follows: A Ltd $63 600 Z Ltd $41 700 e) Of the inventory A Ltd had on hand at 30 June 2010, $18 900 was purchased from Z Ltd. f) Of the inventory A Ltd had on hand at 30 June 2011, $23 100 was purchased from Z Ltd. g) Z Ltd's administrative expenses include $32 250 paid to A Ltd for providing management and administrative service for the year. h) On 30 June 2011, the directors decided that goodwill arising on the acquisition on A Ltd had been impaired by 40%. i) On 30 June 2011, a final dividend amounting to $42 000 was provided by A Ltd, while $30 000 was provided by Z Ltd, and the decision to pay the dividend communicated to shareholders on that date. A Ltd has recognised its share of the dividend receivable from Z Ltd in its financial statements on 30 June 2011. j) Tax is charged at a rate of 40%. Required: (a) Complete the acquisition analysis on 1 July 2007 for A Ltd's investment in Z Ltd as required by AASB3 and AASB10 and determine the amount of goodwill or gain on bargain purchase following the partial/proportional goodwill method. (b) Prepare the acquisition journal entries on 1 July 2007. (c) Prepare all consolidated journal entries including non-controlling interest and their posting to consolidated worksheet for the year ended 30 June 2011 for consolidation purpose of A Ltd and Z Ltd. Question 3: (20 marks) Report Writing on 'Financial Reporting Disclosures in Australian Corporate Sector' (Word length: maximum 1 000 words and at least 3 references) Collect a published annual report (year-end between 2014-2015 periods) for two Australian parent companies listed in the Australian Stock Exchange (ASX). The company web-sites can be obtained from the web-site of the ASE at http://www.asx.com.au/asx/research/listedCompanies.do?coName=Q or any other online resources. Identify their 'consolidated financial statements' reported in the annual reports. Briefly summarise on goodwill method followed, revaluation of assets, impairment of goodwill, non-controlling interests (NCI) and their sharing of any goodwill if applicable. Critically evaluate the financial reporting and disclosure followed by each parent company whether consistent with the requirements of the AASB 3 and AASB 10 for the users of general purpose financial reports. In your essay, identify the strengths and weaknesses of their reporting and disclosure as well as major differences along with your recommendations how to minimise reporting and disclosure gaps between them. Attach a scanned copy of the 'consolidated financial statements' only, no need to attach 'Notes'. Do not attach the entire annual report. NOTE: presentation and referencing are important. Specific and descriptive criteria to follow: (1) There must be an introduction and conclusion section and references, if any, and a scanned copy of the 'consolidated financial statement' attached for both group of companies. (2) There must be a very brief discussion of the selected listed groups of companies (i.e. parents) and their subsidiaries operating activities. (3) Adequate discussion on consolidated financial statements components taken care of in the process of preparing in accordance with AASB 3 and AASB 10. A better understanding of concepts as well as group statements is expected. (4) There must be an analysis of reporting practices as in point (3) above whether AASB 3 and AASB 10 are properly followed or not. The strengths and weaknesses of reporting should be identified from the users' perspective. In evaluating reporting practices, any relevant comment or recommendation should be taken into account. (5) The reporting practices of both groups of companies as in point (3) above must be compared with a decision which group is in compliance with respective AASBs than the other and why and how more compliance is achievable. In evaluating reporting practices, any relevant comment or recommendation for each group should be taken into account