BUS356 Contemporary Financial Accounting Group Based Assignment (GBA) 2025 | SUSS

Published: 28 Mar, 2025
Category Assignment Subject Finance
University Singapore University of Social Scienece Module Title BUS356 Contemporary Financial Accounting Group Based

Question:

On 1 July 2019, Diana Ltd acquired 100% of the issued shares of Charles Ltd for $320,000. At the date of acquisition, the shareholders’ equity of Charles Ltd consisted of:

Share capital $200,000
General reserve $50,000
Retained earnings $30,000
Total $280,000

At 30 June 2023, the accounts of the two companies are presented below.

Income Statement

  Diana Ltd Charles Ltd
Sales $360,000 $195,000
Cost of goods sold ($230,000) ($120,000)
Gross profit $130,000 $75,000
Dividends revenue $14,000
Interest revenue $3,000 $5,000
Total revenue $147,000 $80,000
Less Expenses
Depreciation $11,000 $7,000
Financial expenses $9,000 $9,000
Selling expenses $8,000 $10,000
Profit before tax $119,000 $54,000
Tax expense $48,000 $20,000
Profit after tax $71,000 $34,000
Retained earnings 1 July 2022 $60,000 $10,000
Total retained earnings $131,000 $44,000
Interim dividend paid $10,000 $6,000
Final dividend proposed $30,000 $10,000
Retained earnings 30 June 2023 $91,000 $28,000

Statement of Financial Position

  Diana Ltd Charles Ltd
Shareholders’ equity
Retained earnings $91,000 $28,000
Share capital $350,000 $200,000
General reserve $30,000 $50,000
Liabilities
Accounts payable $45,000 $5,000
Dividend payable $30,000 $10,000
Accrued interest – Diana Ltd $1,000
Loan – Diana Ltd $40,000
Other liabilities $40,000 $10,000
Total liabilities and equity $586,000 $344,000
Assets
Cash at bank $2,000 $1,000
Deposits $65,000
Inventory $40,000 $30,000
Interest receivable $1,000
Loan – Charles Ltd $40,000
Investment in Charles Ltd $320,000
Plant and equipment $110,000 $180,000
Accumulated depreciation ($45,000) ($40,000)
Land and buildings $120,000 $102,000
Accumulated depreciation ($5,000) ($14,000)
Other assets $3,000 $20,000
Total assets $586,000 $344,000

Do You Need BUS356 Assignment of This Question

Order Non Plagiarized Assignment

Additional information:

  • The identifiable net assets of Charles Ltd were recorded at fair value at the date of acquisition.
  • In applying the impairment test for goodwill in the current year, the directors have determined that a write-down of $10,000 is required for consolidation purposes. The cumulative goodwill impairment write-downs for prior years amounted to $15,000.
  • An item of plant and equipment owned by Charles (cost $30,000 and accumulated depreciation of $15,000) was sold to Diana Ltd for $13,000 on 1 July 2020. Charles depreciated the asset at 10% per annum straight-line on original cost (assuming a 10-year economic life). Diana, assuming a further economic life for the plant and equipment of five years from its date of acquisition, has applied a depreciation rate of 20% straight-line from the date of transfer of the asset.
  • The opening inventory of Charles Ltd includes an unrealised profit of $2,000 on inventory transferred from Diana Ltd during the prior financial year. All of this inventory was sold by Charles Ltd to parties external to the group during the year ended 30 June 2023.
  • During the current financial year, Charles Ltd purchased inventory from Diana Ltd for $30,000. The inventory had previously cost Diana Ltd $24,000. One-third of this inventory was sold to outsiders by Charles during the year.
  • Charles Ltd borrowed $40,000 from Diana Ltd during the financial year. Charles paid $2,000 interest on this loan during the year. In addition, a further $1,000 in interest has been recognised as an accrued expense in Charles Ltd’s accounts and as interest receivable in Diana Ltd’s accounts. Interest expense is included in Charles Ltd’s accounts under the financial expenses heading.
  • On 15 July 2022, Charles Ltd paid a final dividend of $8,000 to Diana Ltd from profits for the prior financial year.
  • Charles also paid an interim dividend of $6,000 to Diana Ltd on 1 February 2023. In addition, Charles Ltd has provided for a final dividend amounting to $10,000. Diana Ltd has not recognised this dividend as a receivable before receipt.
  • The tax rate is 30%.

Required

  • Prepare an acquisition analysis.
  • Prepare the consolidation journal entries necessary to prepare consolidated accounts for the year ending 30 June 2023 for the group comprising Diana Ltd and Charles Ltd.
  • Prepare the consolidation worksheet for the preparation of the consolidated financial statements for the period ending 30 June 2023.
  • Why is it important to identify intragroup transactions as current or previous period transactions?
  • In what circumstances is a tax-effect adjustment required when making an adjustment for an intragroup transaction? Provide two examples of intragroup transactions that would require a tax-effect adjustment and one example of an intragroup transaction that would not require a tax-effect adjustment.

If you are having trouble with your assignment for BUS356 Contemporary Financial Accounting Group Based, then you have reached the right place. Our expert team provides assignment help specially designed for students. We are here for you, providing free assignment examples written by our expert PhD writers. We are here to provide the best assessment help services.

Workingment Unique Features

Hire Assignment Helper Today!


Latest Free Samples for University Students

Customer Experience Strategy CW4 Formative Assessment Report Example | BPP

Category: Report Writing Example

Subject: Management

University: BPP Business School

Module Title: Customer Experience Strategy

View Free Samples

BUS7095 Business and Management Research Project Option 4 (Business Plan) Assignment Sample 2024-25, Sem3 | BCU

Category: Assignment

Subject: Business

University: Birmingham City University

Module Title: BUS7095 Business and Management Research Project Option 4 (Business Plan)

View Free Samples

RBP020L063H Leadership and Change Management Assignment Sample

Category: Assignment

Subject: Management

University: University of Roehampton

Module Title: RBP020L063H Leadership and Change Management

View Free Samples

HRMM080 Ethical and Responsible Leadership AS2 Reflective Portfolio Sample

Category: Assignment

Subject: Management

University: University of Northampton

Module Title: HRMM080 Ethical and Responsible Leadership

View Free Samples

ACAD1346 The child’s live Experience Developing Confidence Learners Assignment Sample

Category: Assignment

Subject: Education

University: University of Greenwich (UOG)

Module Title: ACAD1346 The child’s live Experience Developing Confidence Learners

View Free Samples
Online Assignment Help in UK