Financial Statements Analysis & Equity

This assignment provides a detailed example of financial statement analysis, focusing specifically on the equity section. It includes a balance sheet, an income statement, and a statement of changes in equity. The solution explains each line item and highlights key transactions that affect equity during the period. The notes provide further context and details about the company's accounting policies.

Running head: CORPORATE ACCOUNTING
Corporate Accounting
Name of the Student:
Name of the University:
Authors Note:

CORPORATE ACCOUNTING
1
Table of Contents
Q1 Preparing the consolidation worksheet entries for the preparation by Sam Ltd of its
consolidated financial statements at 30 June 2017:...................................................................0
Q2 Preparing the statement of financial position and statement of changes in equity to comply
with AASB 101:.........................................................................................................................0
Bibliography:..............................................................................................................................3

Running head: CORPORATE ACCOUNTING
Q1 Preparing the consolidation worksheet entries for the preparation by Sam Ltd of its consolidated financial statements at 30 June
2017:
Ben ltd Sam ltd Notes
Particulars Debit Credit Debit Credit
Equity
Share capital $ 150,000.00
Reserves $ 10,000.00
Retained earnings $ 30,000.00
Carrying amount Fair value
Plant $ 1,400.00 $ 94,000 96,000 70%
Land $ 10,500.00 $ 80,000 95,000 70%
Inventory $ 4,200.00 $ 20,000 26,000 70%
Databases $ 4,200.00
Total Assets $ 210,300.00
Dividend payable $ 130,000.00 $ 6,000.00

CORPORATE ACCOUNTING
1
Contingency liability $ 9,000.00
Goodwill $ 5,000.00
Net fair value of Sam Ltd $ 199,000.00
Amount transferred to Bod $ 201,600.00
Recorded goodwill $ 5,000
Unrecorded goodwill $ (2400)
Goodwill $ 2600
At 30 June 2017
Particulars Debit Credit
Depreciation 14,000
Plant 12,000
Deferred Tax liability 600
Business Combination reserve 1,400

CORPORATE ACCOUNTING
2
Depreciation 200
Retained earnings 600
Accumulated 800
Tax Liability 240
Income tax expense 60
Retained earnings 180
Databases Amortised 1500
Income tax 450
Retained earnings 3150
Transfer from reserve 4200
Total Transfer 6000
Income tax 3000
Damages(lawsuit) 7000
Gain From the Lawsuit 2000

CORPORATE ACCOUNTING
3
Total Losses 7000
Total Reserve 2400
Goodwill 9400
For Balancing out Bens payment
Particulars Debit Credit
Earnings $ 19,300.00
Share capital $ 100,000.00
Reserves $ 2,000.00
Combination valuation reserve $ 3,800.00 $ 3,800.00
Shares in Sam Ltd $ 124,000.00
Particulars Debit Credit

CORPORATE ACCOUNTING
4
Reserve transfer $ 2,000.00 $ 2,000.00
Business valuation reserve $ 7,000.00 $ 7,000.00
Database decommissioned $ 4,200.00 $ 4,200.00

Running head: CORPORATE ACCOUNTING
Q2 Preparing the statement of financial position and statement of changes in equity to
comply with AASB 101:
Statement of Financial position
Clause As at 30 June 2016 Notes 1-Jul-15 30-Jun-15
Asset
Current
AASB 101.54(h) Accounts receivable 600,000.00
AASB 101.54(g) Inventories 520,000.00
Current 1,120,000.00
Non-Current
AASB 101.54(a) Plant and Equipment (after
depreciation)
800,000.00
AASB 101.54(a) Land 600,000.00
AASB 101.54(a) Building (after depreciation) 900,000.00
AASB 101.57 Goodwill 300,000.00
AASB 101.54(e) Long-term investment 460,000.00
AASB 101.67 Other Debtors 50,000.00
Non-Current 3,110,000.00
Total assets 4,230,000.00
AASB 101.51(c) Liabilities
AASB
101.60,101.69
Current
AASB 101.54(k) Accounts payable 400,000.00
AASB 101.54(n) Income tax payable 249,000.00