Financial Statement Analysis and IFRS
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This assignment presents a financial statement analysis exercise focused on applying International Financial Reporting Standards (IFRS). It involves analyzing provided financial data, calculating key ratios, and interpreting the results to gain insights into an organization's financial health and performance. The text includes references to relevant IFRS principles and accounting literature.
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FINANCIAL ACCOUNTING
TABLE OF CONTENT
TABLE OF CONTENT
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S
1. Prepare acquisition analysis as at the acquisition date, and journal entries to record the
acquisition of the equity interest in MIEL Ltd in PEACE Ltd’s records...............................1
2. Prepare the consolidated adjustments for PEACE Ltd and its controlled entity on 30 June
2018........................................................................................................................................1
3. Calculate non-controlling interest (NCI) in the profit for the financial year ended 30 June
2018........................................................................................................................................8
4. Using the format of the template provided, complete a consolidation worksheet and post
all consolidation journal entries into the worksheet.............................................................10
REFERENCES.........................................................................................................................14
1. Prepare acquisition analysis as at the acquisition date, and journal entries to record the
acquisition of the equity interest in MIEL Ltd in PEACE Ltd’s records...............................1
2. Prepare the consolidated adjustments for PEACE Ltd and its controlled entity on 30 June
2018........................................................................................................................................1
3. Calculate non-controlling interest (NCI) in the profit for the financial year ended 30 June
2018........................................................................................................................................8
4. Using the format of the template provided, complete a consolidation worksheet and post
all consolidation journal entries into the worksheet.............................................................10
REFERENCES.........................................................................................................................14
1. Prepare acquisition analysis as at the acquisition date, and journal entries to record the
acquisition of the equity interest in MIEL Ltd in PEACE Ltd’s records
Particulars Amount
(In $)
Fair value of assets
Plant 50000
Land 30000
Total fair value of assets 80000
Fair value of liabilities 132813
Fair of value of net assets 212813
Purchase consideration 874575
Capital Reserve 661762
Journal entries
Particulars Debit Credit
Plant account Dr 50000
To fair value adjustments 50000
(Being property taken at fair value)
Fair value adjustment a/c Dr 30000
Land account Dr 30000
To Fair value adjustments
(Being Land taken over at fair value)
Fair value adjustments account Dr 32000
To deferred tax liability (80000*40%) 32000
Share capital a/c dr 386095
Retained earnings a/c Dr
105824
2
Fair value adjustment a/c Dr 80000
Revaluation reserve a/c Dr 12000
To investment in beach ltd 874575
To Capital reserve 661762
2. Prepare the consolidated adjustments for PEACE Ltd and its controlled entity on 30 June
2018
PEACE
Ltd MIEL Ltd
Consolidated Entries
Group
Particular
Dr Cr
1
acquisition of the equity interest in MIEL Ltd in PEACE Ltd’s records
Particulars Amount
(In $)
Fair value of assets
Plant 50000
Land 30000
Total fair value of assets 80000
Fair value of liabilities 132813
Fair of value of net assets 212813
Purchase consideration 874575
Capital Reserve 661762
Journal entries
Particulars Debit Credit
Plant account Dr 50000
To fair value adjustments 50000
(Being property taken at fair value)
Fair value adjustment a/c Dr 30000
Land account Dr 30000
To Fair value adjustments
(Being Land taken over at fair value)
Fair value adjustments account Dr 32000
To deferred tax liability (80000*40%) 32000
Share capital a/c dr 386095
Retained earnings a/c Dr
105824
2
Fair value adjustment a/c Dr 80000
Revaluation reserve a/c Dr 12000
To investment in beach ltd 874575
To Capital reserve 661762
2. Prepare the consolidated adjustments for PEACE Ltd and its controlled entity on 30 June
2018
PEACE
Ltd MIEL Ltd
Consolidated Entries
Group
Particular
Dr Cr
1
Sales revenue 3,625,8
10 2,481,765 67840
(W.N.1)
48528
(W.N.2) 608826
3
Cost of goods sold
-
1,765,8
00
-1,414,820 32448 (W.N.
4)
5152
(W.N.3)
315332
4
Gross profit 1,860,0
10 1,066,945 2240
(W.N. 5)
292919
5
Other income
(expense) 271,060 27,800 298860
Operating income 2,131,0
70 1,094,745 322581
5
Expenses, including
depreciation
-
1,858,0
00
-958,745 281674
5
Net profit before tax 273,070 136,000 409070
Income tax expenses -77,249 -53,540 130789
Net profit after tax
(NPAT) 195,821 82,460 278282
1
Retained earnings at 1
July 2017 655,064 720,520 180130
119545
4
Retained Earnings
(Dividend declared) 23,498 24,738
30920 (W.N.
6)
17316
NPAT of the year 195,821 82,460 23498.52
(W.N. 7)
254782.
48
Retained earnings at 30
June 2018
827,386 778,242
778,242
(W.N. 8)
827386
Shareholders’ Equity
Share capital 1,000,0
00 690,000
386095
(W.N. 9)
102390
5
Retained earnings
827,386 778,242
1058242
(W.N. 10)
827386
Revaluation Reserve
250,000 12,000
250000
(W.N. 11) 12000
2
10 2,481,765 67840
(W.N.1)
48528
(W.N.2) 608826
3
Cost of goods sold
-
1,765,8
00
-1,414,820 32448 (W.N.
4)
5152
(W.N.3)
315332
4
Gross profit 1,860,0
10 1,066,945 2240
(W.N. 5)
292919
5
Other income
(expense) 271,060 27,800 298860
Operating income 2,131,0
70 1,094,745 322581
5
Expenses, including
depreciation
-
1,858,0
00
-958,745 281674
5
Net profit before tax 273,070 136,000 409070
Income tax expenses -77,249 -53,540 130789
Net profit after tax
(NPAT) 195,821 82,460 278282
1
Retained earnings at 1
July 2017 655,064 720,520 180130
119545
4
Retained Earnings
(Dividend declared) 23,498 24,738
30920 (W.N.
6)
17316
NPAT of the year 195,821 82,460 23498.52
(W.N. 7)
254782.
48
Retained earnings at 30
June 2018
827,386 778,242
778,242
(W.N. 8)
827386
Shareholders’ Equity
Share capital 1,000,0
00 690,000
386095
(W.N. 9)
102390
5
Retained earnings
827,386 778,242
1058242
(W.N. 10)
827386
Revaluation Reserve
250,000 12,000
250000
(W.N. 11) 12000
2
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NCI 96591.25
(W.N. 12)
96591.2
5
Total shareholders’
equity
2,077,3
86 1,480,242
365421
9.25
Liabilities
Current Liabilities
Accounts Payable 48,068 41,892 89960
Dividend Payable 23,498 24,738 30920 17316
Income tax payable 109,228 54,400 163628
Other payable 21,643 11,783 33426
Total current liabilities 202,437 132,813 335250
Non-Current Liabilities
Deferred Tax
Liabilities 0 32000 32000
Bank Loan 280,000 80,000 360000
Total non-current
liabilities 280,000 80,000 360000
Total Liabilities 482,437 212,813 695250
Total Equity and
Liabilities
2,559,8
24 1,693,055
428487
9
Assets
Current Assets
Cash 683,502 154,744 838246
Accounts Receivable 56,642 37,010 93652
Less: Allowance for
doubtful accounts -10,000 -4,800 -14800
Dividend Receivable 120,000 0 120000
Inventory
17,158 38,950
17520 (W.N.
13) 38588
Total Current Assets 867,302 225,904
107568
6
3
(W.N. 12)
96591.2
5
Total shareholders’
equity
2,077,3
86 1,480,242
365421
9.25
Liabilities
Current Liabilities
Accounts Payable 48,068 41,892 89960
Dividend Payable 23,498 24,738 30920 17316
Income tax payable 109,228 54,400 163628
Other payable 21,643 11,783 33426
Total current liabilities 202,437 132,813 335250
Non-Current Liabilities
Deferred Tax
Liabilities 0 32000 32000
Bank Loan 280,000 80,000 360000
Total non-current
liabilities 280,000 80,000 360000
Total Liabilities 482,437 212,813 695250
Total Equity and
Liabilities
2,559,8
24 1,693,055
428487
9
Assets
Current Assets
Cash 683,502 154,744 838246
Accounts Receivable 56,642 37,010 93652
Less: Allowance for
doubtful accounts -10,000 -4,800 -14800
Dividend Receivable 120,000 0 120000
Inventory
17,158 38,950
17520 (W.N.
13) 38588
Total Current Assets 867,302 225,904
107568
6
3
Non-Current Assets
Goodwill 290500 0 7000 283500
Deferred Tax assets 79,947 2,151 82098
Investment in Dark Ltd 874,575 0 874575
Land 138,000 465,000 30000 573000
Property, Plant and
Equipment (PPE) 900,000 1,500,000
193000
(W.N.14)
38600
(W.N.15)
224560
0
Less: Accumulated
depreciation of PPE -
300,000 -500,000
43600(W.
N.16)
-843600
Total non-current
assets
1,692,5
22 1,467,151
321517
3
Total Assets
2,559,8
24 1,693,055
429085
9
Working Notes
W.N.1 Sales revenue Debit balance
Inventory sold= 60000+ (5600*140%= 7840)
= 67840
W.N.2 Sales revenue Credit balance
Inventory sold
= 60000*75%= 45000
= 5600*45%= 2520
= 45000+2520= 47520
W.N.3 Cost of goods sold Credit balance
= 5600*92%= 5152
W.N.4 Cost of goods sold Debit balance
Inventory cost= 32000
4
Goodwill 290500 0 7000 283500
Deferred Tax assets 79,947 2,151 82098
Investment in Dark Ltd 874,575 0 874575
Land 138,000 465,000 30000 573000
Property, Plant and
Equipment (PPE) 900,000 1,500,000
193000
(W.N.14)
38600
(W.N.15)
224560
0
Less: Accumulated
depreciation of PPE -
300,000 -500,000
43600(W.
N.16)
-843600
Total non-current
assets
1,692,5
22 1,467,151
321517
3
Total Assets
2,559,8
24 1,693,055
429085
9
Working Notes
W.N.1 Sales revenue Debit balance
Inventory sold= 60000+ (5600*140%= 7840)
= 67840
W.N.2 Sales revenue Credit balance
Inventory sold
= 60000*75%= 45000
= 5600*45%= 2520
= 45000+2520= 47520
W.N.3 Cost of goods sold Credit balance
= 5600*92%= 5152
W.N.4 Cost of goods sold Debit balance
Inventory cost= 32000
4
= 5600*8%= 448
= 32448
W.N.5 Gross profit credit balance
= 5600*40%= 2240
W.N. 6 Retained earning
Particulars MIEL LTD
Dividend declared 24738
Dividend payout ratio 30%
Retained earning 7421
Particulars PEACE LTD
Profit 195821
Dividend payout ratio 12%
Retained earning 23498.52
W.N. 7
Particulars PEACE LTD
Profit 195821
Dividend payout ratio 12%
Retained earning 23498.52
23498.52 amounts will get deducted from the total retained earning amount of both the entity
such as PEACE LTD as well as MEIL LTD. This amount will get deducted as this amount
has paid in the form of a declared dividend.
W.N.8
778242 is the amount of retained earnings of MIEL LTD will get deducted from the
consolidated financial statement as this amount is utilised in paying the purchase
consideration to MEIL LTD for purchasing the shares in their firm.
5
= 32448
W.N.5 Gross profit credit balance
= 5600*40%= 2240
W.N. 6 Retained earning
Particulars MIEL LTD
Dividend declared 24738
Dividend payout ratio 30%
Retained earning 7421
Particulars PEACE LTD
Profit 195821
Dividend payout ratio 12%
Retained earning 23498.52
W.N. 7
Particulars PEACE LTD
Profit 195821
Dividend payout ratio 12%
Retained earning 23498.52
23498.52 amounts will get deducted from the total retained earning amount of both the entity
such as PEACE LTD as well as MEIL LTD. This amount will get deducted as this amount
has paid in the form of a declared dividend.
W.N.8
778242 is the amount of retained earnings of MIEL LTD will get deducted from the
consolidated financial statement as this amount is utilised in paying the purchase
consideration to MEIL LTD for purchasing the shares in their firm.
5
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W.N.9
386095 of share capital is utilized in paying off the total consideration of 874575 will get
deducted from the total share capital of 690000 of MEIL LTD.
W.N. 10
1058242 is total retained earning amount which got deducted from MEIL LTD as this utilizes
in paying the total purchase consideration for the investment made in MEIL LTD. It is a
mixture of same component of different periods such as 778242 of 2018 and 280000 at the
time of acquisition in the year 2014 is combined to meet the purchase consideration liability.
W.N. 11
Revaluation reserve of 250000 is also involved in paying purchase consideration to MEIL
LTD as it is essential for an individual to pay the amount to get the overall benefits attached
with the acquisition transactions takes places between PEACE LTD and MEIL LTD for
proportionate share basis of their ownership (Masadeh, Mansour and A L Salamat, 2017).
W.N. 12
96591.25 shows the non-controlling interest in profit and reserves and share capital for the
year 2018 and non- controlling interest in the opening retained earning is not consider as it
belong to the previous year that is 2017. This entire amount is determined at 25% of profit
and shares and share capital (Sinclair and Keller, 2017).
W.N. 13
It shows the amount which belongs to MIEL LTD before the acquisition as their business
inventory which will be adjust just like a acquisition transaction. 75% of the total inventory is
sold to other entity and the remaining 25% of the same will belongs to MEIL will get
deducted from the current inventory held by the firm for the financial year 2018 (Alver and
Alver, 2017). 25% of 60000 are 15000+ 5600*45% is 2520 which in total amounts to 17520
will get excluded from the total amount of inventory held by an enterprise for the year 2018.
W.N. 14
193000 is total amount of property, plant and equipment which includes 80000 as the fair of
plant, selling value of plant of 88000 and 25000 from the sale proceeds of equipment.
6
386095 of share capital is utilized in paying off the total consideration of 874575 will get
deducted from the total share capital of 690000 of MEIL LTD.
W.N. 10
1058242 is total retained earning amount which got deducted from MEIL LTD as this utilizes
in paying the total purchase consideration for the investment made in MEIL LTD. It is a
mixture of same component of different periods such as 778242 of 2018 and 280000 at the
time of acquisition in the year 2014 is combined to meet the purchase consideration liability.
W.N. 11
Revaluation reserve of 250000 is also involved in paying purchase consideration to MEIL
LTD as it is essential for an individual to pay the amount to get the overall benefits attached
with the acquisition transactions takes places between PEACE LTD and MEIL LTD for
proportionate share basis of their ownership (Masadeh, Mansour and A L Salamat, 2017).
W.N. 12
96591.25 shows the non-controlling interest in profit and reserves and share capital for the
year 2018 and non- controlling interest in the opening retained earning is not consider as it
belong to the previous year that is 2017. This entire amount is determined at 25% of profit
and shares and share capital (Sinclair and Keller, 2017).
W.N. 13
It shows the amount which belongs to MIEL LTD before the acquisition as their business
inventory which will be adjust just like a acquisition transaction. 75% of the total inventory is
sold to other entity and the remaining 25% of the same will belongs to MEIL will get
deducted from the current inventory held by the firm for the financial year 2018 (Alver and
Alver, 2017). 25% of 60000 are 15000+ 5600*45% is 2520 which in total amounts to 17520
will get excluded from the total amount of inventory held by an enterprise for the year 2018.
W.N. 14
193000 is total amount of property, plant and equipment which includes 80000 as the fair of
plant, selling value of plant of 88000 and 25000 from the sale proceeds of equipment.
6
W.N.15
38600 amounts shows the profit on sale of plant and equipment as 28000 as profit on sale of
the plant and 10600 as profit on the sale of equipment.
W.N.16
Depreciation on plant
Particulars Amount
Cost 100000
Life of asset 5
Depreciation for 2013 20000
Cost after depreciation 80000
Life of asset 4
Depreciation for 2015 20000
Cost after depreciation 60000
Sale of asset 88000
Profit on Sale 28000
Particulars Amount
Cost 18000
Life of asset 5
Depreciation for 2013 3600
Cost after depreciation 14000
Sale of asset 25000
Profit on Sale 106000
Particulars Amount
Cost of Plant 100000
Depreciation as per books
7
38600 amounts shows the profit on sale of plant and equipment as 28000 as profit on sale of
the plant and 10600 as profit on the sale of equipment.
W.N.16
Depreciation on plant
Particulars Amount
Cost 100000
Life of asset 5
Depreciation for 2013 20000
Cost after depreciation 80000
Life of asset 4
Depreciation for 2015 20000
Cost after depreciation 60000
Sale of asset 88000
Profit on Sale 28000
Particulars Amount
Cost 18000
Life of asset 5
Depreciation for 2013 3600
Cost after depreciation 14000
Sale of asset 25000
Profit on Sale 106000
Particulars Amount
Cost of Plant 100000
Depreciation as per books
7
Life in years 6
Depreciation 16667
Depreciation as per income tax act
Life in years 4
Depreciation 25000
Difference 8333
Tax @40% 3333.2
Deferred tax asset 3333.2
Particulars Debit Credit
Deferred tax asset a/c Dr 3333.2
To Income tax expense 3333.2
3. Calculate non-controlling interest (NCI) in the profit for the financial year ended 30 June
2018
Non controlling interest is a term used to denote the remaining share of acquiree
which is not acquired by an acquirer in a financial year (Kochiyama and Seki, 2017).
Acquisition is one of the practice in which stronger entity will capture the weaker enterprise
who are not able to meet up their current costs and fell into bankruptcy (Bradley, 2017). By
using option, an entity that’s financially weaker can compensate all their costs by selling their
firm to a stronger business (Cheng, Lin, Lu and Wei, 2017). Non controlling interest situation
occurs when an acquirer will acquire an entity with higher share of 50% but less than 100%.
In the current case, PEACE LTD has acquired the firm of MEIL LTD for 75% of their
total business as they purchases 448500 shares out of the total shares of 690000 of the firm.
The purchased shares in the MEL LTD amounts to 75% and remaining 25% shares left with
MEIL LTD (Assor, Feinberg, Kanat-Maymon and Kaplan, 2018). PEACE LTD has taken
75% shares as majority of the business decisions will taken by the new owner as they have
power to influence the previous owner as they have full control over their firm in taking all
kinds of firm’s decisions (Skoulikidis, Vardakas, Amaxidis and Michalopoulos, 2017).
Changes in the financially statements will occur as their financial structure has changed due
8
Depreciation 16667
Depreciation as per income tax act
Life in years 4
Depreciation 25000
Difference 8333
Tax @40% 3333.2
Deferred tax asset 3333.2
Particulars Debit Credit
Deferred tax asset a/c Dr 3333.2
To Income tax expense 3333.2
3. Calculate non-controlling interest (NCI) in the profit for the financial year ended 30 June
2018
Non controlling interest is a term used to denote the remaining share of acquiree
which is not acquired by an acquirer in a financial year (Kochiyama and Seki, 2017).
Acquisition is one of the practice in which stronger entity will capture the weaker enterprise
who are not able to meet up their current costs and fell into bankruptcy (Bradley, 2017). By
using option, an entity that’s financially weaker can compensate all their costs by selling their
firm to a stronger business (Cheng, Lin, Lu and Wei, 2017). Non controlling interest situation
occurs when an acquirer will acquire an entity with higher share of 50% but less than 100%.
In the current case, PEACE LTD has acquired the firm of MEIL LTD for 75% of their
total business as they purchases 448500 shares out of the total shares of 690000 of the firm.
The purchased shares in the MEL LTD amounts to 75% and remaining 25% shares left with
MEIL LTD (Assor, Feinberg, Kanat-Maymon and Kaplan, 2018). PEACE LTD has taken
75% shares as majority of the business decisions will taken by the new owner as they have
power to influence the previous owner as they have full control over their firm in taking all
kinds of firm’s decisions (Skoulikidis, Vardakas, Amaxidis and Michalopoulos, 2017).
Changes in the financially statements will occur as their financial structure has changed due
8
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to fluctuations in the ownership of the business (Kokan, Kovačević, Stefanic, Tzvetkova and
Kirin, 2018).
Non-controlling interest allow an acquirer to participate in the board meeting of their
firm to gain benefits of the business operations (Kieso, Weygandt and Warfield, 2010). MEIL
LTD has not lost full control over their business as some amount of the total profit will goes
to MEIL LTD who is 25% owner of MEIL LTD (Samkin and Deegan, 2010). It is essential
deduct the non controlling interest from the total profit to know the actual worth of PEACE
LTD after acquiring the MEIL LTD. The non- controlling interest will help in ascertaining
the actual efforts applied by the new entity in generating higher return over a short span of
time (Baluch and et. al., 2010).
Particulars Non-Controlling interest in Profit 2018
Profit 82460
NCI 25%
NCI in amount 20615
Profit a/c Dr 20615
To non- controlling interest 20615
(Being 25% of NCI worth 20615 deducted from the profit)
Particulars Non-Controlling interest in opening
retaining earning
Retained earning 720520
NCI 25%
NCI in amount 180130
Retained Earnings a/c Dr 180130
To Non controlling interest 180130
(Being non- controlling interest deducted from the retained earnings)
Particulars Non-Controlling interest in Profit 2018
9
Kirin, 2018).
Non-controlling interest allow an acquirer to participate in the board meeting of their
firm to gain benefits of the business operations (Kieso, Weygandt and Warfield, 2010). MEIL
LTD has not lost full control over their business as some amount of the total profit will goes
to MEIL LTD who is 25% owner of MEIL LTD (Samkin and Deegan, 2010). It is essential
deduct the non controlling interest from the total profit to know the actual worth of PEACE
LTD after acquiring the MEIL LTD. The non- controlling interest will help in ascertaining
the actual efforts applied by the new entity in generating higher return over a short span of
time (Baluch and et. al., 2010).
Particulars Non-Controlling interest in Profit 2018
Profit 82460
NCI 25%
NCI in amount 20615
Profit a/c Dr 20615
To non- controlling interest 20615
(Being 25% of NCI worth 20615 deducted from the profit)
Particulars Non-Controlling interest in opening
retaining earning
Retained earning 720520
NCI 25%
NCI in amount 180130
Retained Earnings a/c Dr 180130
To Non controlling interest 180130
(Being non- controlling interest deducted from the retained earnings)
Particulars Non-Controlling interest in Profit 2018
9
Reserves and share capital 303905
NCI 25%
NCI in amount 75976.25
Reserves and share capital a/c Dr 75796.25
To Non controlling interest 75796.25
(Being reserves and share capital of Peace LTD decreases by 75976.25)
4. Using the format of the template provided, complete a consolidation worksheet and post all
consolidation journal entries into the worksheet.
PEAC
E Ltd MIEL Ltd Consolidated Entries Group
NCI
Entri
es
Par
ent
Particular
Dr Cr D
r
C
r
Sales revenue 3,625,
810 2,481,765 67840
(W.N.1)
48528
(W.N.2) 60882
63
Cost of goods sold
-
1,765,
800
-1,414,820 32448
(W.N. 4)
5152
(W.N.3)
31533
24
Gross profit 1,860,
010 1,066,945 2240
(W.N.
5)
29291
95
Other income
(expense)
271,06
0 27,800 29886
0
Operating income 2,131,
070 1,094,745 32258
15
Expenses,
including
depreciation
-
1,858,
000
-958,745 28167
45
Net profit before
tax
273,07
0 136,000 40907
0
Income tax
expenses
-
77,249 -53,540 13078
9
Net profit after tax
(NPAT)
195,82
1 82,460 27828
21
Retained earnings
at 1 July 2017
655,06
4
720,520 13755
84
1
8
0
1
11
95
45
4
10
NCI 25%
NCI in amount 75976.25
Reserves and share capital a/c Dr 75796.25
To Non controlling interest 75796.25
(Being reserves and share capital of Peace LTD decreases by 75976.25)
4. Using the format of the template provided, complete a consolidation worksheet and post all
consolidation journal entries into the worksheet.
PEAC
E Ltd MIEL Ltd Consolidated Entries Group
NCI
Entri
es
Par
ent
Particular
Dr Cr D
r
C
r
Sales revenue 3,625,
810 2,481,765 67840
(W.N.1)
48528
(W.N.2) 60882
63
Cost of goods sold
-
1,765,
800
-1,414,820 32448
(W.N. 4)
5152
(W.N.3)
31533
24
Gross profit 1,860,
010 1,066,945 2240
(W.N.
5)
29291
95
Other income
(expense)
271,06
0 27,800 29886
0
Operating income 2,131,
070 1,094,745 32258
15
Expenses,
including
depreciation
-
1,858,
000
-958,745 28167
45
Net profit before
tax
273,07
0 136,000 40907
0
Income tax
expenses
-
77,249 -53,540 13078
9
Net profit after tax
(NPAT)
195,82
1 82,460 27828
21
Retained earnings
at 1 July 2017
655,06
4
720,520 13755
84
1
8
0
1
11
95
45
4
10
3
0
Retained Earnings
(Dividend
declared)
23,498 24,738
30920
(W.N. 6)
17316
NPAT of the year 195,82
1 82,460 23498.52
(W.N. 7)
25478
2.48
Retained earnings
at 30 June 2018
827,38
6 778,242
778,242
(W.N. 8) 82738
6
Shareholders’
Equity
Share capital 1,000,
000 690,000
386095
(W.N. 9) 10239
05
75
97
6.2
5
Retained earnings 827,38
6 778,242
1058242
(W.N. 10) 82738
6
Revaluation
Reserve 250,00
0 12,000
250000
(W.N. 11) 12000
0
NCI
0 0
9
6
5
9
1
.
2
5
(
W
.
N
.
1
2
)
96
59
1.2
5
Total shareholders’
equity
2,077,
386 1,480,242
36542
19.25
Liabilities
Current Liabilities
11
0
Retained Earnings
(Dividend
declared)
23,498 24,738
30920
(W.N. 6)
17316
NPAT of the year 195,82
1 82,460 23498.52
(W.N. 7)
25478
2.48
Retained earnings
at 30 June 2018
827,38
6 778,242
778,242
(W.N. 8) 82738
6
Shareholders’
Equity
Share capital 1,000,
000 690,000
386095
(W.N. 9) 10239
05
75
97
6.2
5
Retained earnings 827,38
6 778,242
1058242
(W.N. 10) 82738
6
Revaluation
Reserve 250,00
0 12,000
250000
(W.N. 11) 12000
0
NCI
0 0
9
6
5
9
1
.
2
5
(
W
.
N
.
1
2
)
96
59
1.2
5
Total shareholders’
equity
2,077,
386 1,480,242
36542
19.25
Liabilities
Current Liabilities
11
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Accounts Payable 48,068 41,892 89960
Dividend Payable 23,498 24,738 30920 17316
Income tax payable 109,22
8 54,400
16362
8
Other payable 21,643 11,783 33426
Total current
liabilities
202,43
7 132,813
33525
0
Non-Current
Liabilities
Deferred Tax
Liabilities 0 32000 32000
Bank Loan 280,00
0 80,000
36000
0
Total non-current
liabilities
280,00
0 80,000
36000
0
Total Liabilities 482,43
7 212,813
69525
0
Total Equity and
Liabilities
2,559,
824 1,693,055
42848
79
Assets
Current Assets
Cash 683,50
2 154,744
83824
6
Accounts
Receivable 56,642 37,010 93652
Less: Allowance
for doubtful
accounts
-
10,000 -4,800 -14800
Dividend
Receivable
120,00
0 0
12000
0
Inventory
17,158 38,950
17520
(W.N. 13) 38588
Total Current
Assets
867,30
2 225,904
10756
86
Non-Current Assets
Goodwill 29050
0 0 7000
28350
0
Deferred Tax assets
79,947 2,151
3333.2
82098
85
43
1.2
12
Dividend Payable 23,498 24,738 30920 17316
Income tax payable 109,22
8 54,400
16362
8
Other payable 21,643 11,783 33426
Total current
liabilities
202,43
7 132,813
33525
0
Non-Current
Liabilities
Deferred Tax
Liabilities 0 32000 32000
Bank Loan 280,00
0 80,000
36000
0
Total non-current
liabilities
280,00
0 80,000
36000
0
Total Liabilities 482,43
7 212,813
69525
0
Total Equity and
Liabilities
2,559,
824 1,693,055
42848
79
Assets
Current Assets
Cash 683,50
2 154,744
83824
6
Accounts
Receivable 56,642 37,010 93652
Less: Allowance
for doubtful
accounts
-
10,000 -4,800 -14800
Dividend
Receivable
120,00
0 0
12000
0
Inventory
17,158 38,950
17520
(W.N. 13) 38588
Total Current
Assets
867,30
2 225,904
10756
86
Non-Current Assets
Goodwill 29050
0 0 7000
28350
0
Deferred Tax assets
79,947 2,151
3333.2
82098
85
43
1.2
12
Investment in Dark
Ltd
874,57
5 0
87457
5
Land 138,00
0 465,000 30000
57300
0
Property, Plant and
Equipment (PPE) 900,00
0 1,500,000
193000
(W.N.14)
38600
(W.N.15
)
22456
00
Less: Accumulated
depreciation of
PPE
-
300,00
0 -500,000
43600 -
84360
0
Total non-current
assets
1,692,
522 1,467,151
32151
73
Total Assets
2,559,
824 1,693,055
42908
59
13
Ltd
874,57
5 0
87457
5
Land 138,00
0 465,000 30000
57300
0
Property, Plant and
Equipment (PPE) 900,00
0 1,500,000
193000
(W.N.14)
38600
(W.N.15
)
22456
00
Less: Accumulated
depreciation of
PPE
-
300,00
0 -500,000
43600 -
84360
0
Total non-current
assets
1,692,
522 1,467,151
32151
73
Total Assets
2,559,
824 1,693,055
42908
59
13
REFERENCES
Alver, L. and Alver, J., 2017. The Role and Current Status of IFRS in the Completion of the
National Accounting Rules–Evidence from Estonia. Accounting in Europe, pp.1-8.
Assor, A., Feinberg, O., Kanat-Maymon, Y. and Kaplan, H., 2018. Reducing Violence in
Non-controlling Ways: A Change Program Based on Self Determination Theory. The
Journal of Experimental Education. 86(2). pp.195-213.
Baluch, C., and et.al., 2010. Consolidation theories and push-down accounting: achieving
global convergence. Journal of Finance and Accountancy. 3. p.1.
Bradley, S., 2017. Inattention to Deferred Increases in Tax Bases: How Michigan Home
Buyers Are Paying for Assessment Limits. Review of Economics and Statistics. 99(1).
pp.53-66.
Cheng, M., Lin, B., Lu, R. and Wei, M., 2017. Non-controlling large shareholders in
emerging markets: Evidence from China. Journal of Corporate Finance.
Kieso, D. E., Weygandt, J. J. and Warfield, T. D., 2010. Intermediate accounting: IFRS
edition (Vol. 2). John Wiley & Sons.
Kochiyama, T. and Seki, K., 2017. Discretion in the Deferred Tax Valuation Allowance and
Its Impact on Firms' Dividend Payouts.
Kokan, Z., Kovačević, B., Stefanic, Z., Tzvetkova, P. and Kirin, S., 2018. Controlling
Orthogonal Self-Assembly through Cis-Trans Isomerization of a Non-Covalent Palladium
Complex Dimer. Chemical Communications.
Masadeh, W., Mansour, E. and A L Salamat, W., 2017. Changes in IFRS 3 Accounting for
Business Combinations: A Feedback and Effects Analysis.
Samkin, G. and Deegan, C., 2010. Calculating non-controlling interest in the presence of
goodwill impairment. Accounting Research Journal. 23(2). pp.213-233.
Sinclair, R. and Keller, K. L., 2017. Brand value, accounting standards, and mergers and
acquisitions:“The Moribund Effect”. Journal of Brand Management. 24(2). pp.178-192.
14
Alver, L. and Alver, J., 2017. The Role and Current Status of IFRS in the Completion of the
National Accounting Rules–Evidence from Estonia. Accounting in Europe, pp.1-8.
Assor, A., Feinberg, O., Kanat-Maymon, Y. and Kaplan, H., 2018. Reducing Violence in
Non-controlling Ways: A Change Program Based on Self Determination Theory. The
Journal of Experimental Education. 86(2). pp.195-213.
Baluch, C., and et.al., 2010. Consolidation theories and push-down accounting: achieving
global convergence. Journal of Finance and Accountancy. 3. p.1.
Bradley, S., 2017. Inattention to Deferred Increases in Tax Bases: How Michigan Home
Buyers Are Paying for Assessment Limits. Review of Economics and Statistics. 99(1).
pp.53-66.
Cheng, M., Lin, B., Lu, R. and Wei, M., 2017. Non-controlling large shareholders in
emerging markets: Evidence from China. Journal of Corporate Finance.
Kieso, D. E., Weygandt, J. J. and Warfield, T. D., 2010. Intermediate accounting: IFRS
edition (Vol. 2). John Wiley & Sons.
Kochiyama, T. and Seki, K., 2017. Discretion in the Deferred Tax Valuation Allowance and
Its Impact on Firms' Dividend Payouts.
Kokan, Z., Kovačević, B., Stefanic, Z., Tzvetkova, P. and Kirin, S., 2018. Controlling
Orthogonal Self-Assembly through Cis-Trans Isomerization of a Non-Covalent Palladium
Complex Dimer. Chemical Communications.
Masadeh, W., Mansour, E. and A L Salamat, W., 2017. Changes in IFRS 3 Accounting for
Business Combinations: A Feedback and Effects Analysis.
Samkin, G. and Deegan, C., 2010. Calculating non-controlling interest in the presence of
goodwill impairment. Accounting Research Journal. 23(2). pp.213-233.
Sinclair, R. and Keller, K. L., 2017. Brand value, accounting standards, and mergers and
acquisitions:“The Moribund Effect”. Journal of Brand Management. 24(2). pp.178-192.
14
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