Corporate Accounting: Consolidated Financial Statements and Acquisition Analysis

Running head: CORPORATE ACCOUNTING
Corporate Accounting
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1CORPORATE ACCOUNTING
Table of Contents
Introduction......................................................................................................................................2
Question 1:.......................................................................................................................................3
Question 2:.......................................................................................................................................4
Question 3:.......................................................................................................................................7
Conclusion.......................................................................................................................................8
References:......................................................................................................................................9

2CORPORATE ACCOUNTING
Introduction
The process of growing corporations in terms of gaining control of the other company in terms of
cost reduction, material supplies or controlling the market or diversification of the product or
further to avail the tax benefits (Hoyle, Schaefer and Doupnik 2015).In this case, acquisition is
been done by Tuna Limited for Brim Limited. The financial positions and the results of
operations are presented through consolidated financial statements in which it is shown as a
single enterprise. In this regard, single financial information is to be provided about the parent
and subsidiary company (Erel, Jang and Weisbach 2015).
On the other hand, as per Section 129 (Clause 3), Companies Act 2013, the Consolidated
Financial Statements needs to be made in the same manner for subsidiaries as it is made for the
parent companies (Yang, Poon and Lee 2015). Further, as per the accounting standards (AS 21)
certain procedures as well as principles are given for the presentation of the consolidated
financial statements. Further for the acquisition of subsidiary represents the minority interest
rate, for Brim Limited for the amount that payable for the subsidiary shareholders at book value
beginning from the bargaining time of the acquisition. Nevertheless, IAS 27, “Consolidated
Financial Statements and Accounting for Investments in Subsidiaries” depicts the basic
framework for the preparation (Lee and Parker 2014).
As pr the report the Tuna Limited as the parent company is acquiring Brim Limited where
acquisition analysis, consolidation journal entries and the consolidation worksheet for the Tuna
Limited to address working of the company.