On 1 July 2018 Bear Ltd acquired 100 000 shares in Island Ltd at a price of $10 each. There were brokerage fees of $1500. The closing market price of Island Ltd shares on 30 June 2019which is the entitys financial year endwas $12. Bear Ltd has not made the election to account for its equity investments at fair value through OCI.

Required: Provide the required accounting journal entries for Bear Ltd to account for the investment in Island Ltd using fair value through profit or loss.

(a) ABC Pty Ltd is a small proprietary company. The shareholders are Mr and Mrs ABC, who also manage the companys day-to-day operations. The companys bankers, The Bank, receive monthly management accounts, budgeted cash-flow information, and the year-end statutory accounts.

(b) F Pty Ltd is a large companyone of only two in Australiainvolved in the manufacture of widgets. Although the shares are tightly heldby family members the company employs more than 200 staff. The company has a small number of major suppliers. The companys sole banker receives the companys statutory accounts under its borrowing agreement. (c) E Trust is a private trust wherein up to a maximum of 30 members may deposit amounts to be invested in blue-chip equities. Members funds consist of units of $1 each. Quarterly reports are produced, which disclose the market value of the trust assets and the values of each members entitlements.

Required: For each of the independent situations identified below, consider and conclude whether the entity is required by the Corporations Act to prepare financial statements and, if so, whether it is a reporting entity. You should also note the reporting implications of your decision.