Corporate Takeover Decision Making and the Effects on Consolidation Accounting

Holmes Institute
Corporate and Financial
Accounting
Corporate Takeover Decision Making and the Effects on
Consolidation Accounting
Name of the Student
5/26/2019

Executive Summary
The main purpose of the assignment is to extend knowledge in the area of business
combinations, the corporate group wherein multiple entity forms a single group for the
purpose of consolidation, the acquisition accounting methods, intra group transactions and its
elimination and accounting and accounting and recognition of non-controlling interest and its
disclosure in consolidated financial statement.
With reference to AASB 3: Business Combinations, AASB 128 Investments in Associates and
Joint Ventures, AASB 101 Presentation of Financial Statements and AASB 10 Consolidated
Financial Statements the accounting to be made and adjustment to be made for disclosure
and presentation of financial statements.

Table of Contents
Executive Summary....................................................................................................................2
Introduction.................................................................................................................................4
Answer to Question Part A.........................................................................................................5
Answer to Question Part B.........................................................................................................7
Answer to Question Part C.........................................................................................................9
Conclusion................................................................................................................................11
References...............................................................................................................................12

Introduction
Part A of the section addresses with reference to AASB 3: Business Combinations, AASB
128 Investments in Associates and Joint Ventures and AASB 10 Consolidated Financial
Statements, the key differences in methodology between Consolidation Accounting and
Equity Accounting and introduces us to various method of consolidation accounting.
Part B of the section addresses with reference to AASB 127 Consolidated and Separate
Financial Statements and AASB 10 Consolidated Financial Statements the key principles
which explain how intra-group transactions should be treated in consolidated financial
statement
Part C of the section addresses with reference to AASB 127 Consolidated and Separate
Financial Statements and AASB 101 Presentation of Financial Statements, the effects of the
NCI disclosure requirement as a separate item in the consolidation process.