country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Corporate Accounting: LBX Pty Limited

tag 0 Download4 Pages / 930 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Discuss about the Corporate Accounting for LBX Pty Limited.

 

Answer:

Investment relationship a-

There are two shareholders of LBX Pty limited that is founder of LBX and MC.  Owner of LBX that is Mr. T and Mrs. T. holds majority of shares.  Entities are required to assess facts and circumstances for determination of control. MC is entitled to take all decisions of organization and they have majority of seats in board of directors. All the leading activities of LBX Pty limited is directed by MC while participating in such activities. MC is entitled to exercise control and functions over investee in accordance with paragraph 10 of AASB 10. As per B 36 of AASB, an investor can exercise control over the investee if they have majority of voting rights provided voting rights are functional (aasb.gov.au 2017). Therefore, MC can exercise power of control over LBX Pty limited.

Investment relationship b-

The requirement of control test and consolidation can be determined is required to assess protective rights. Applicability of such rights are don in some exceptional circumstances and when organization are required to make any fundamental changes. BBT has failed to make repayment of loan to MC due to uncertain economic climate. MC monitors the control of finances of BBT and its recording of expenses for the period of five years. Nonetheless, MC does not have any seats in the board of directors and therefore, they do not have any voting rights. In such scenario, no consolidation is required and they cannot exercise any control on board of directors. 

Investment relationship c-

MC and BJL are the two shareholders of CTL that have equal voting rights in board of directors and have shares in board of directors. Management services of CTL is looked after by BJL for which they charge remuneration fees and MC is engaged in supplying loans. For determining the control in such scenario, investors are required to collectively engage in directing relevant activities. According to paragraph 9 of AASB 10, if an organization has two or more investors, then control cannot be exercised by individually and they are required to collectively engage in decision-making (aasb.gov.au 2017). Since, investors are not actively involved in decision-making and they are not cooperative, therefore they cannot exercise control over CTL. Each investors needs to account for their interest in controlling activities of investee accordance to AASB 11.

 

Investment relationship d-

PGH Pty Limited has three investors named MC, GJL and CCL each having equal share of 33.3%. MC has one seat in board of director and they are actively engage in managing activities. Other investors that is GJL and CCL are not actively engaged in directing and managing daily activities of PGH Pty limited, as they are passive investors. It is possible for investors to have more than passive interest that provides them with required power to direct the activities of business according to paragraph B-19 of AASB 10 (aasb.gov.au 2017). Hence, business of PGH would be controlled by MC although there does not exist any rights, they are fulfilling criteria of exercising control.

Investmentrelationship e-

MC holds majority of shares of JB-Hi-Fi Ltd, however they are not involved in any decision and have no seats in board of directors. Consolidation of assets has been resulted from their deficiency. MC does not enjoy voting rights despite having majority of shares (Zadeket al. 2013). In accordance with paragraph B-38 of AASB 10, an investor can exercise control despite not having voting rights (aasb.gov.au 2017). In the given situation, MC is a passive investor that does not have any voting rights and are not involved in directing activities. Therefore, control of JB-Hi-Fi does not rest in MC.

Requirement a:

In this particular scenario, Wiley and Sons Australia acquire 70% of shares of Wiley Plus Limited. Equity interest has been acquired by acquire by way of acquisition.  Calculation of goodwill under such scenario is done at the date of acquisition and the amount is calculated of the fair value of interest rate of acquire. There is no transferring of equity interest and the determination of interest is done using valuation technique (Renner 2013).

Requirement b:

The additional ownership of acquisition of interest requires calculation of goodwill by referring to fair value adjustments. Value of assets recognized at the date of acquisition is used for deducting the loss generated from impairment (Zadek et al 2013).

Requirement c:

There are two possible ways for determining the goodwill valuation under consolidation of accounting. It is possible to have either 100% ownership or 50% ownership in any entity. In the first option, goodwill can be calculated as the difference between value of purchase consideration and share of net identifiable assets fair value for acquirer. In second option, goodwill can be computed as the difference between total net identifiable assets fair value and organization’s fair value (Uyar 2016).

 

References list:

Aasb.gov.au. (2017). [online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB10_08-11.pdf [Accessed 11 Oct. 2017].

Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability assessment, management accounting, control, and reporting. Journal of Cleaner Production, 136, pp.237-248.

Ramesh, B., 2013. The role of forensic accounting in modern corporate accounting world. ZENITH International Journal of Multidisciplinary Research, 3(1), pp.224-233.

Uyar, A., 2016. Evolution of corporate reporting and emerging trends. Journal of Corporate Accounting & Finance, 27(4), pp.27-30.

Zadek, S., Evans, R. and Pruzan, P., 2013. Building corporate accountability: Emerging practice in social and ethical accounting and auditing. Routledge.

Zhang, N., 2014. Research on the Influence of Accounting Environmental Change on Financial Accounting Theoretical Innovation.

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Corporate Accounting: LBX Pty Limited. Retrieved from https://myassignmenthelp.com/free-samples/corporate-accounting-lbx-pty-limited.

"Corporate Accounting: LBX Pty Limited." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/corporate-accounting-lbx-pty-limited.

My Assignment Help (2018) Corporate Accounting: LBX Pty Limited [Online]. Available from: https://myassignmenthelp.com/free-samples/corporate-accounting-lbx-pty-limited
[Accessed 04 June 2020].

My Assignment Help. 'Corporate Accounting: LBX Pty Limited' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/corporate-accounting-lbx-pty-limited> accessed 04 June 2020.

My Assignment Help. Corporate Accounting: LBX Pty Limited [Internet]. My Assignment Help. 2018 [cited 04 June 2020]. Available from: https://myassignmenthelp.com/free-samples/corporate-accounting-lbx-pty-limited.


MyAssignmenthelp.com is widely acknowledged for providing affordable essay help among students in Australia. Being a cheap essay assistance service, we provide additional offers and discounts on each order. However, students don't need to worry about the quality of the paper because writers always write each paper from scratch while including all relevant research. Some of our popular services include English essay help, math essay help, marketing essay help, etc. So quit thinking 'who can help with my essay' and place an order with us.

Latest Accounting Samples

ACCT20071 Foundations In Accounting 2

Download : 0 | Pages : 10

Answer: Introduction The paper will focus on the integrating reporting tool is used by AGL Energy Limited. The main purpose is to discuss on my Australian companies is using Integrating reporting tool more and to assess the integrate reporting tool used by AGL Energy Limited. Corporate Social Responsibility is the responsibility of a business towards their community, customers and other stakeholders in order to provide social value and make ...

Read More arrow Tags: Australia 5 ACCOUNTING AND FINANCIAL REPORTING Central Queensland University 

ACCT322 Management Accounting For Financial Health And The Liquidity

Download : 0 | Pages : 2
  • Course Code: ACCT322
  • University: West Virginia University
  • Country: United States

Answer: Answer to Question 1 Financial accounting refers to the discipline that is utilized in order to determine the financial health of the company. The determination of the financial health and the liquidity position of a company are important. This is because the financial information presented in the accounting statements reflects the true financial condition of the company, which helps the stakeholders of business to interpret the finan...

Read More arrow

HA3011 Advanced Financial Accounting 6

Download : 0 | Pages : 10

Answer: Part A Based on the application of the conceptual framework usefulness of the financial information is considered with the application of factors such as “comparable, verifiable, timely and understandable” nature of the financial reporting. The relevance factor is associated to the making a difference in the decisions which relate to the economic theories. It has been further seen that the financial information is needs to...

Read More arrow

HI5020 Corporate Accounting And Annual Reports

Download : 1 | Pages : 8

Answer: Introduction: Evaluation of financial figures, expenses, liabilities and assets of an organization is mandatory to evaluate the position of the company and the rules and regulations which have been followed by the company while preparing the financial reports of the company. In this report, annual report of The Citadel Group Limited has been evaluated and the tax expenses, current tax assets and tax payable amount of the company has b...

Read More arrow

ACC305 Assurance And Attestation System

Download : 0 | Pages : 5
  • Course Code: ACC305
  • University: Elite Education
  • Country: Australia

Answer: Introduction: In the provided situation, it can be seen that Mortdate Accounting firm has provided all the papers related to the audit of many public companies to Penshurts Accountants.  APES 110, Confidentiality, 140 states that it is the obligation on the auditors that they cannot disclose the confidential information of the audit clients acquired at the time of providing professional services. For this reason, by providin...

Read More arrow
Next
watch

Save Time & improve Grade

Just share Requriment and get customize Solution.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,329,672

Orders

4.9/5

Overall Rating

5,076

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

134 Order Completed

95% Response Time

Thomas Nelson

MS in Information Systems Technology with Specialization in Database Administration

New Jersey, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

416 Order Completed

95% Response Time

Tyler Moore

MBA in Accounting

Washington, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

529 Order Completed

95% Response Time

Ivan Blank

PhD in Functional Human Biology

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

440 Order Completed

99% Response Time

Jack Arens

MBA in HRM

London, United Kingdom

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

First time using My Assignment Help Services - First meeting with customer service was very thorough and spent time explaining. Once hired and explained what I needed, I received exactly what I had asked for. The assignment was sent to me before th...

flag

User Id: 436537 - 04 Jun 2020

Australia

student rating student rating student rating student rating student rating

Good Job - provided exactly what I asked for. Addressed all questions in the assignment. APA formatted with references within the past 5 years. Assignment finished before the time I asked for it.

flag

User Id: 436537 - 04 Jun 2020

Australia

student rating student rating student rating student rating student rating

Finally a wonderful work ! Satisfied by rework after escalation as expected revived the solution! Would definitely recommend my friends! Thanks

flag

User Id: 332636 - 04 Jun 2020

Australia

student rating student rating student rating student rating student rating

VERY GOOD INFORMATION, I HAD TO DO A VIDEO ON THIS ASSIGNMENT. IT WAS A FEW MISSED SPELL WORDS BUT I READ OVER AND OVER UNTIL I GOT IT RIGHT. tHANKS!

flag

User Id: 240291 - 04 Jun 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?