Word count : 700-800

You are the accountant for Violet Ltd, a large organisation with a number of subsidiaries. On 1 January 2019, Violet Ltd purchased all of the shares of another company, Crumble Ltd. Following this acquisition, management have raised the following issue with you: 1. We were told Crumble Ltd reported a tax loss for the year ending 30 June 2018, but we cannot find any evidence of this in the financial statements. Isn't this a breach of the qualitative characteristics of financial information? Can you give us evidence from both accounting standards and the AASB Framework to support your explanation? You now need to prepare a report for senior management regarding the accounting treatments identified in the issue raised above. Your report needs to be in the form of report which will be distributed to all senior management of Violet Ltd. Allocate 750 words each to the first two issues and 1 000 words to the third issue. You need to use authoritative, relevant references and relevant Accounting Standards and the AASB Framework to help support your argument. However, remember your audience (senior management) are not accountants, so you need to use this information to support your argument (e.g. don't just quote large sections of the standards, as the managers won't read it!)