Company Accounting: Investment Decisions, Acquisition Analysis, and Financial Statements

Running Head: Company Accounting 1
Project Report: Company Accounting
Student name and college id 1

Company Accounting
Marking criteria sheet
Student name Student ID
Part B Marking Criteria Sheet Marks
Available
Marks
awarded
20 marks
Question 1 10
Question 2 20
Question 3 50
Less: Not complying with formatting, word count
and marking criteria sheet
Part B Assignment Total 80 marks
Part B Assignment: 20% weighting 20 marks
Less: Late penalty (5% per day)
Part B Assignment: Final mark 20 marks
Additional comments from marker
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Company Accounting
Question 1:
Memorandum
To: Chief financial officer (CFO)
Cc: Other team members
From: Accountant name
Date: 6 Sept 2018
Subject: Investment decisions in Soletta ltd.
This memorandum has been prepared to analyze that why an organization should
acquire other company and how the financial records are prepared in the company. In the
memorandum, purpose of consolidated financial statement, meaning of group, subsidiary and
parent company, intra transaction adjustment etc has been studied.
consolidated financial statements are the statement which collectively describe about
the financial performance of an organization. The main purpose behind the preparation of
consolidated financial statement is describe the overall performance to the stakeholders of the
parent company. A parent company prepares the consolidated financial statement which
includes the statement of subsidiary companies as well.
Group, parent and subsidiary companies are inter linked to each other. A group
company owns the parent company and subsidiary companies. It is not important for a group
company to have the operations in the industry. Further, a parent company is could be a part
of Group Company which holds the control of interest in various subsidiary companies. The
substantial interest in the subsidiary companies improves the profitability level of the
business (Higgins, 2012). Lastly, those companies who are controlled and owned by the other
companies are the subsidiary companies.
A group is eligible to hold various parent companies at the same time. The only
condition with the group company is that the parent companies must operate as a single
economic entity and it must also have common source of control over the interest and the
profits.
Student name and college id 3