Balance Sheet Preparation & Analysis: Convict Australia Wallet Ltd

This assignment presents a detailed balance sheet for Convict Australia Wallet Limited as of March 31, 2027. It meticulously categorizes assets (current and non-current), liabilities (current and non-current), and equity, providing a clear snapshot of the company's financial position. Key assets include inventory, accounts receivable, cash, land, and property, plant, and equipment, while liabilities encompass bank loans, notes payable, and long-term bonds. Equity is comprised of foreign currency reserve, general reserve, retained earnings, and paid-up capital. The document also includes crucial notes explaining the valuation of inventory, adjustments for depreciation and cash balance, provisions for reserves, treatment of gains on land sale, impairment of goodwill, and the recognition of gains on investments available for sale. These notes offer insights into the accounting principles and judgments applied in preparing the balance sheet, enhancing its transparency and reliability. Desklib offers more solved assignments for students.

Running head: ACCOUNTING STATEMENT ANALYSIS
Accounting Statement Analysis
Name of the Student:
Name of the University:
Authors Note:

1ACCOUNTING STATEMENT ANALYSIS
Contents
Balance sheet:..................................................................................................................................2
Notes:...............................................................................................................................................4
References:......................................................................................................................................6

2ACCOUNTING STATEMENT ANALYSIS
Balance sheet:
Statement of Financial Position of Convict Australia Wallet Limited as on March 31, 2027:
Statement of financial position Convict Australia Wallet Limited
Assets Amount ($) Amount ($)
Current assets
Inventory 111,000,000.00
Accounts Receivable 41,000,000.00
Short-Term Marketable Securities 22,000,000.00
Investments Available for Sale 37,000,000.00
Cash 54,300,000.00
Prepaid insurance 2,200,000.00
Other receivable 50,000,000.00
Total current assets 317,500,000.0
0
Non-current assets
Goodwill 9,000,000.00
Property, Plant and Equipment 67,000,000.00

3ACCOUNTING STATEMENT ANALYSIS
Copyright 2,500,000.00
Patents 1,500,000.00
Land 360,000,000.00
Associate Investment 111,000,000.00
Total non-current assets 551,000,000.0
0
Total assets 868,500,000.0
0
Liabilities and equity
Current liabilities
Bank Loans 145,000,000.00
Notes Payable (Due within 12 Months) 19,500,000.00
Accounts payable 123,000,000.00
Total current liabilities 287,500,000.0
0
Non-current liabilities
Long-Term Bonds (Due More than 12 Months) 75,000,000.00

4ACCOUNTING STATEMENT ANALYSIS
Long-Term Investment (Held to Maturity) 25,000,000.00
Long-Term Pension Obligations 14,000,000.00
Notes Payable (Due More than 12 Months) 19,500,000.00
Total non-current liabilities 133,500,000.0
0
Equity
Foreign Currency Reserve 75,000,000.00
General Reserve 75,000,000.00
Retained Earnings 112,500,000.00
Paid-Up Capital 185,000,000.00
Total Equity 447,500,000.0
0
Total liabilities and equity 868,500,000.0
0
Notes:
1. The net realizable value of inventory is not lower than the cost hence, the inventory has been
valued at cost as per the IAS, Inventories which provides that inventory should be valued at lower
of cost or net realizable value (Christensen, Lee, Walker & Zeng, 2015).

5ACCOUNTING STATEMENT ANALYSIS
2. Accumulated depreciation has been increased to provide for the current years depreciation of
$18,000,000.
3. Cash balance has been adjusted to record the various transactions which have not been included
in the Trial Balance (Nobes, 2014).
4. In order to make the foreign currency reserve balance equal to the amount of general reserve an
additional provision of $25,000,000 has been made from retained earnings (Nobes & Stadler,
2015).
5. Balance of gain on sale of land has been written off completely against the amount of retained
earnings as it has been already realized in financial year 2024/25 (Wang, 2014).
6. Impairment of goodwill of $15,000,000 has been recorded against the retained earnings.
7. Investment available for sale is already agreed to be sold within a period of 6 months at a gain of
$12,000,000 thus, the entire amount of gain shall be recognized in retained earnings and the
investment value shall be appreciated (Klychova, Fakhretdinova, Klychova & Antonova,
2015).
8. Accounts payable and accounts receivable balances have not been changed as it has been
assumed that all the amounts have been correctly valued in Trial Balance.
9. Notes payable within 12 months ad after 12 months shall be separately shown under current and
non-current liabilities (Morris & Tronnes, 2018).
10. Paid up equity share capital has been reduced for both calls in arrear and buy back shares.

6ACCOUNTING STATEMENT ANALYSIS
References:
Christensen, H. B., Lee, E., Walker, M., & Zeng, C. (2015). Incentives or standards: What
determines accounting quality changes around IFRS adoption?. European Accounting
Review, 24(1), 31-61.
Klychova, G. S., Fakhretdinova, E. N., Klychova, A. S., & Antonova, N. V. (2015).
Development of accounting and financial reporting for small and medium-sized
businesses in accordance with international financial reporting standards. Asian Social
Science, 11(11), 318.
Morris, R. D., & Tronnes, P. C. (2018). The determinants of voluntary strategy disclosure: An
international comparison. Accounting Research Journal, 31(3), 423-441.
Nobes, C. (2014). International classification of financial reporting. Routledge.
Nobes, C. W., & Stadler, C. (2015). The qualitative characteristics of financial information, and
managers’ accounting decisions: evidence from IFRS policy changes. Accounting and
Business Research, 45(5), 572-601.
Wang, C. (2014). Accounting standards harmonization and financial statement comparability:
Evidence from transnational information transfer. Journal of Accounting Research, 52(4),
955-992.