Part A (5 marks) You are a non-executive director attending a regular board meeting for JKY Ltd. At the top of the agenda is the proposed takeover of a smaller company called FAB Ltd, which is an ASX listed entity operating in the same industry. JKY Ltd is considering which acquisition strategy should be used. One director is arguing that the direct "purchase / acquisition method" is the best option, whilst another director is proposing a longer term strategy, which involves acquiring the shares of FAB Ltd by first acquiring "significant influence" over FAB Ltd. Given your experience as a qualified CPA, the Chairman has asked you for your opinion in writing based on your extensive knowledge of accounting for business combinations. With reference to AASB 3: Business Combinations, AASB 128 Investments in Associates and Joint Ventures and AASB 10 Consolidated Financial Statements, prepare a detailed response to the Chairman and the board, which outlines the key differences in methodology between Consolidation Accounting and Equity Accounting. Provide worked examples within your response which fully explain the two options.
Part B (5 marks) At the same board meeting the CFO reported that a partially owned subsidiary provided professional services and sold inventory to the parent company JKY Ltd at a profit. The CFO is seeking clarification from the board in relation to whether profit should be deducted from the subsidiary's reported profit for the sale of inventory and for providing the professional services to the parent entity. Secondly, how will this affect the non-controlling Interest (NCI) calculation in the subsidiary's annual profit?
With reference to AASB 127 Consolidated and Separote Financial Statements and AASB 10
Thanks for turning in this post discussion on time and responding in detail to the question. Nice Job!!!! Very Satisfied!!!
MyAssignmenthelp.com has achieved the status of the best essay writing service because of an unbreakable record of delivering high-class service. Our efficient team of essay writers are based in different countries including the USA, UK and Australia. We have build teams of native essay writers to deliver country-specific, universities' requirement based custom essay help. Other than making sure that students get customised solutions. We deliver requirement based solutions and ensure that the price remains reasonable so that students can readily access our services. Because of our flexible approach, students who search the internet with search terms like write my essay at a cheap rate, find our service most in sync with their demands.
Just share requirement and get customized Solution.
Orders
Overall Rating
Experts
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat. If you are unable to calculate word count online, ask our customer executives.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
Able to get my work done after few changes, which were done as per suggestion provided by us. Appreciate their positive approach for this
Australia
Amazing experience with you guys. I got 20/20. You are the best in the market i tried multiple sites but you guys gave best output.
Australia
good paper, thank you very much. i am looking forward to working with you. Recommended
Australia
thanks a lot thanks a lot thanks a lot thanks a lot thanks a lot thanks a lot thanks a lot
Australia