BA8017 Financial Accounting and Reporting

Objectives This individual assignment aims to achieve the following objectives: (a)Apply the concepts of consolidation accounting to prepare financial statements for a group of companies(b)Demonstrate knowledge and understanding of the components ofconsolidated financial statements. (c)Practise good report writing skills for effective written communication. 3.Part 1 –Preparation of Financial Statements  3.1 Task: Assume you are Chief Financial Officer of your company which is listed in the stock exchange. In preparation for the company’s Annual General Meeting, you are required to produce financial statements showing financial position as well as financial performance for your company shareholders. 3.2 Approach: (a)You will be provided with the following: -Statement of Financial Position as at 31 March 2020 for 2 companies -Statement of Profit and Loss for the year ended 31 March 2020 for 2 companies -Other relevant information relating to the relationship between the 2 companies. (b)Based on information and materials provided, prepare relevant financial statements for the shareholders of your company.

Assessment will be based solely on accuracy, completeness and correct presentation of the financial statements. 4.Part 2 –Explanation of Financial Information 4.1 Task: Due to COVID-19, the company’s Annual General Meeting has beencancelled. As the Chief Financial Officer of your company, you are required to produce a written report explaining in detail the financial information presented in your financial statements you prepared in Part 1. Do note that your shareholders may be financially illiterate and also do not know about any relationship your company may have with other company. 4.2 Approach: (a)Explain the nature of the relationship your company has with any companyyou have included in the preparation of financial statements with your company and explain the purpose of presenting financial information in the financial statements prepared in Part 1 (b)Based on the financial statements presented in Part 1, -explain the nature of every item as well as applicable accounting concepts / principles for deriving its value -show the workings for arriving at the value for every item To enhance the clarity of your explanations, you may illustrate with your own examples or references from public domain (i.e. outside of learning materials) so long as it helps your shareholders to understand better the information in your financial statements