Advance Financial Accounting: Reporting and Disclosure

Running head: ADVANCE FINANCIAL ACCOUNTING
Advance financial accounting
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1ADVANCE FINANCIAL ACCOUNTING
Table of Contents
Objective....................................................................................................................................2
Scope..........................................................................................................................................2
Key definition.............................................................................................................................2
Reporting under business combination and consolidated financial statements.........................3
Disclosure...................................................................................................................................3
Reference....................................................................................................................................5

2ADVANCE FINANCIAL ACCOUNTING
Issues 4
Objective
The objective of the report is focussing on the issues those were not treated
appropriately by Engineering & Construction PLC while preparing the CFS (consolidated
financial statements). Hence, the report will highlight the issues regarding the control
concept, significant influence and amount of goodwill arising on the date of acquisition. It
will further guidance on account of the key aspects of the above mentioned concepts for
including the purpose and importance under group reporting and obligations to provide the
same. Finally the report will provide conclusion based on the discussion (Müller 2014).
Scope
The standard shall be applied in respect of accounting for the investments in
associates in presentation and preparation of the CFS by the investor. However, it does not
treat with the investment accounting in the associates in preparing and presenting of the
separate financial statements by the investors.
Key definition
Change in the definition of control under IFRS 10 – Consolidated financial statement
is estimated to have great impact on investment management industry. The investment
manager will require applying more comprehensive guidance of IFRS 10. It is regarding
stating whether they have control on the entities with whom they are associated and whether
they will require consolidating the entities under their financial statements. The term control
is stated as ownership, indirectly or directly through the subsidiaries of more than 50% of
voting power of any entity or has control on the composition of the board of directors in case
the company or composition of governing body in circumstances where the other enterprises