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Corporate and Financial Accounting

   

Added on  2020-10-22

11 Pages3002 Words326 Views
CORPORATE ANDFINANCIALACCOUNTING

EXECUTIVE SUMMARYThe project report summarises about the corporate and financial accounting. Basicallyboth are important in the context of any kind of business entity. The corporate accounting maybe defined as a kind of accounting technique which is related to the process of preparation ofdifferent kind of financial statements such as income statement, cash flow, balance sheet etc. Onthe other hand, the financial accounting is associated with the summarising, analysing andreporting the financial transactions regarding to the business. Mainly, the project report abstractsabout the ways to acquire a business because there are two different opinions to acquire acompany. Further, the report summarises about the ways of raising the funds as well as issueswhich raises due to consolidation process.

Table of ContentsEXECUTIVE SUMMARY.............................................................................................................2INTRODUCTION...........................................................................................................................4MAIN BODY..................................................................................................................................4PART A......................................................................................................................................4Part B..........................................................................................................................................5Part C..........................................................................................................................................7CONCLUSION...............................................................................................................................9REFERENCES..............................................................................................................................11

INTRODUCTIONCorporate accounting is a branch of accounting which is related to company accountingsuch as preparation of cash flow statements, financial statements, analysing as well asinterpreting financial results along with accounting particular events (Zadek, Evans and Pruzan,2013). Financial accounting is related to tracking organisational financial transactions byadopting standardise guidelines. Both accounting are required for successfully attainingobjectives of business and performing activities smoothly. For understanding the corporate andfinancial accounting, JKY Ltd is selected. The executives of selected company has an agenda totakeover FAB Ltd. This report includes legislativerequirementsincompanyformationand waysto accountforequity,capitalanddistributions. It further discusses about themethodsofraisingcompanyfunds along with theabilitytoprepareconsolidatedfinancialstatementsand manner inwhichdataiscollected,adjustedandinterpreted. MAIN BODYPART ALegislatives are related to making any law. These are required for different purposes such ascompany formation and many. These are legal requirements which are mandatory to follow in orderto achieve the objectives of firm. There are many ways in which a company can take over othercompanies such as purchase or acquisition method, equity method. These are described as:Purchase method: Under such method, the accounts are amalgamated of transfereecompany through incorporating liabilities along with assets at existing value or allocatingconsiderations to identifiable liabilities and assets of transferor firm on fair value basis(Edwards, 2013). Adoption of acquisition method requires identifying the acquirer, determiningdate for acquisition, recognition as well as measurement of identifiable assets, liabilities andnon controlling interest in acquiree, recognising along with measuring gain and reputation frombargain purchase. Equity method: Under this method, investments are recognised at cost as well as resultsin increase or decrease of carrying amount for recognising profits of investor's share and lossesin investee's share after date of acquisition (Dyreng, Mayew and Williams, 2012). As perCorporations Act 2001 it is mandatory to prepare financial reports. Investee's profits ore lossesare analysed on the basis of investor’s profits and losses.

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