Business Consolidation Journal Entries - [AASB/IFRS]

Online tutoring services

Need help with this question or any other Accounting assignment help task? Click on the button below to to hire an expert cheap.

I have attached a question below that need to answered by 11:59 pm on 2 June 2021. The question has to be answered in accordance with AASB/IFRS standards. It is a small university-level Corporate Accounting question from Business Consolidation. Please contact me if you require additional information.

Get Help With a similar task to - Business Consolidation Journal Entries - [AASB/IFRS]

Login to view and/or buy answers.. or post an answer
Additional Instructions:
QUESTIONS: N Ltd acquired 75% of the issued shares of O Ltd on 1 July 2003 for a cash payment of $5,000,000. At the date of acquisition, the capital and reserves of O Ltd were as follows: Paid up capital $4,000,000 Retained profits $2,100,000 General Reserve $300,000 $6,400,000 All the assets are recorded at fair value except some vehicles which have been recorded at $12,000 with cost $18,000. The fair value of these vehicles is estimated to be $15,000 and the vehicles are to be depreciated over the next 6 years on a straight-line basis. For the year ended 30 June 2008, the following transactions occurred: Goodwill is impaired 10,000 per year. At the commencement of the financial year 1 July 2007, N Ltd had inventory on hand stated in its accounts at $450,000 which had been purchased from O Ltd. O Ltd had originally paid $400,000 for the inventory. The inventory was sold by N Ltd to entities outside the group during the current financial year; O Ltd sold inventory items to N Ltd at a transfer price of $1,860,000; At the end of the financial year 30 June 2008, O Ltd held inventory stated at $525,000 which had been sold to it by N Ltd. This inventory had cost N Ltd $512,000; On 1 July 2004, O Ltd sold an item of machinery to N Ltd for $280,000. This item had cost O Ltd $500,000 on 1 July 1999. The machine had a ten year economic life with no scrap value. It was depreciated on a straight line basis for both accounting and taxation purposes. The directors of N Ltd anticipated the remaining useful life of the machine to be consistent with what the directors of O Ltd had originally estimated; All dividends have been paid out of post-acquisition profits and N Ltd records dividends as revenue only when paid; The extracts of the financial statements for the year ended 2008 for N Ltd and O Ltd are provided: N Ltd ($000) O Ltd ($000) Sales $9,364.00 $5,750.00 COGS ($6,600.00) ($2,285.00) Gross profit $2,764.00 $3,465.00 Dividend revenue $95.50 $0.00 Expenses ($1,123.00) ($450.00) OPBT $1,736.50 $3,015.00 Income tax expense ($700.00) ($900.00) OPAT $1,036.50 $2,115.00 Retained Earnings (1/7/07) $1,249.50 $4,200.00 Interim Dividend Paid ($60.00) ($100.00) Dividend Declared ($80.00) ($120.00) OPAT of the year $1,036.50 $2,115.00 Retained Earnings $2,146.00 $6,095.00 N Ltd ($000) O Ltd ($000) Retained Earnings $2,146.00 $6,095.00 Paid up capital $12,200.00 $4,000.00 Revaluation reserve $1,350.00 $870.00 General reserve $1,500.00 $700.00 Total Equity $17,196.00 $11,665.00 Tax payable $700.00 $900.00 DTL $0.00 $0.00 Other liabilities $4,740.00 $2,850.00 Total Liabilities $5,440.00 $3,750.00 Total Equity and Liabilities $22,636.00 $15,415.00 Plant and Mach. $7,036.00 $8,430.00 Vehicles $21,000.00 $18,000.00 Accumulated Depreciation ($18,000.00) ($16,000.00) Vehicles (Net) $3,000.00 $2,000.00 Inventory $4,500.00 $2,500.00 Other current assets $2,100.00 $2,485.00 Investments $6,000.00 $0.00 DTA $0.00 $0.00 Total Assets $22,636.00 $15,415.00 Required: Prepare the consolidation journal entries for the year ended 30 June 2008. Assume a corporate tax rate of 30%.

Related Questions

Similar orders to Business Consolidation Journal Entries - [AASB/IFRS]
25
Views
0
Answers
Accounting Project for business transactions entered into excel (cybertext)
Accounting project requires excel entires from business transactions. Need this done by today. Please help! There is simple math involved and the project itself is worth 10 points towards my final grade. I will pay accordingly based off of results....
25
Views
0
Answers
Accounting for Merchandise Business
Accounting quiz, about merchandise business transactions. You have to fill in journal entries. I do not have time, willing to negotiate price. Taken on cengage...
58
Views
0
Answers
Basic Accounting: Balance Sheet/Income Statement/Cash Flow (Journal entries...etc) Exam
We are using Financial Accounting: An Integrated Approach 7th Edition by Ken Trotman It's just basic accounting that ask you to do general ledgers, journal entries, construct a balance sheet.. etc... I'm having my first week Assessment Test that would be 35 minutes long (around 8 questions). Need someone who is very good with accounting to help. It would be 10/8 5pm Sydney, Australia Time. It's short since it's only 35 minutes....
63
Views
0
Answers
the investment detective case solutions - case study

The investment Detective case solutions

Answer Q1:

We can rank the projects by simply inspecting the cash flows (mention bellow), yet it’s not a good measure to rank them.

We can’t rank the projects by only simple inspection of the cash flows because of the time value of money and cost of capital of companies. We use capital budgeting tools to measure financial performance of projects.

The Ranking by simply inspecting the cash flows:

...