Corporate Takeover Decision Making and the Effects on Consolidation Accounting

Running head: CORPORATE TAKEOVER DECISION MAKING AND THE
EFFECTS ON CONSOLIDATION ACCOUNTING
Corporate Takeover Decision Making and the Effects on Consolidation Accounting
Name of the Student:
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Author’s Note:

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CORPORATE TAKEOVER DECISION MAKING AND THE EFFECTS ON
CONSOLIDATION ACCOUNTING

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CORPORATE TAKEOVER DECISION MAKING AND THE EFFECTS ON
CONSOLIDATION ACCOUNTING
Table of Contents
Introduction...................................................................................................................2
PART A Response........................................................................................................2
PART B.........................................................................................................................5
PART C.........................................................................................................................8
Conclusion..................................................................................................................11
Reference List.............................................................................................................12

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CORPORATE TAKEOVER DECISION MAKING AND THE EFFECTS ON
CONSOLIDATION ACCOUNTING
Introduction
This report has assessed three segments where in the initial stage, the
segment which is being considered is the equity accounting and the consolidated
accounting. In this part, this has regarded the AASB 10 and AASB 128. In the
second segment, the part which is being considered is the intragroup transaction of
the JKY limited. The accounting standard of the AASB 10 & AASB 127 is analysed in
a detailed way. The third segment that is being considered is the NCI disclosure
considering the demand of the AASB 101 (Trichterborn, Zu Knyphausen‐Aufseß and
Schweizer, 2016). The task has summarised the entire section.
PART A Response
The profit of the company can be increased with some choices. The AASB
128 is made responsible for issuing the ventures as well as the guidelines of the
choices. The company is required to be abide by these guidelines. The FAB limited
can be attained with the two possible options. The first option is the acquisition and
the purchase method where the implication is performed over the direct purchase of
the company (Shroff, 2017). The second option is the acquisition involvement
through which the shares of the company can be attained. The company can
achieve a huge quantity of profit over the options of the acquisitions. The ASX listed
company named FAB Ltd. would be acquired by JKY Ltd. Hence it can be expected
that this organization has a lump sum amount of money or rather profit in its cash
treasure. A chart is being presented where a special case of the equity accounting
and consolidation is being discussed:
Consolidation Accounting Equity Accounting
The consolidation accounting is the This is the process of accounting where