ACCT6005 Company Accounting

This assessment addresses the following subject learning outcomes:

a) Prepare consolidated financial statements and related accounting entries for incorporated entities.

b) Generate and communicate strategic recommendations in various inter entity relationship scenarios with reference to relevant accounting standards.

a) Prepare the journal entriesfor Antara Ltd at 30 June 2020 to account foritsinvestment in Blanca Ltd, assuming Antara Ltd prepares consolidated financial statements. 

b) Prepare the consolidated statement of profit or loss and other comprehensive income for Antara Ltd for the year ended at 30 June 2020, assuming this statement includes Blanca Ltd’s financial results

Prepare a report explaining and making recommendations on the financial reporting issues below.

a) The impact of change to preparing consolidated financial statements on Antara Ltd’s disclosure of financial information. 

Your response should include:      

1. The differences between applying the equity method of accounting in Antara Ltd’s own accounting records, and applying the equity method of accounting in Antara Ltd’s consolidation worksheet.  

The content of Antara Ltd’s relevant financial statement.

The extent of financial information available to Antara Ltd’s external users.

References to the financial information in Part A and relevant accounting standards.                    

b) Potential dividends paid by Blanca Ltd. This is because Blanca Ltd has been profitable and the company management plans to pay dividends to Antara Ltd.

Your response should include:

1. How dividends paid by Blanca Ltd are accounted for using the equity method of accounting.

2. How dividends are disclosed in Antara Ltd’s relevant financial statement.