As the financial accountant you are requested to prepare a response to the following questions: (a) Should the financial statements of new acquired business, Mark Construction Ltd, be consolidated into the economic entity and why?
(250 words maximum) (b) Why does the economic entity have a deferred tax balance?
Furthermore, Mark Construction Ltd has been acquired at the closure of the accounting period as on 30th June 2019.
Reporting of the consolidation accounts for the betterment of financial statement of the economic entity and, furthermore to bring uniformity across companies book of accounts for such acquisitions it compulsory for the companies to follow prescribed guidelines as per Australian Accounting Standard Board 1024 for the proper closure of books.(AASB,1992) For the year closing at 30th June 2019 following necessary adjustments are required to be made in the books of World Retailing Ltd in accordance with Australian Accounting Standard Board 1024.
Since, accounting standards vary on a country-by-country basis, we have a dedicated team of Corporate Accounting assignment writing experts, based in Australia.
Our experts are Australian natives and hold a full-fledged understanding of Australian accounting standards.The need to follow combined accounts concept is because the entire firm’s book of accounts is maintained with the understanding of a same accounting theory and principal.It also helps for the internal users as well external parties to understand the accounting and financial position of the economic entity more quickly.(500 words maximum) You must make reference to relevant paragraphs of the Accounting Standard and/or AASB Framework and to other sources of material. For details on the Harvard referencing system go to: (and click on ‘Harvard’ link).Part A World Retailing Ltd acquires 80% shares of Mark Construction Ltd to extend its operation in Australia, and it also has an existing wholly owned subsidiary (Adelaide Retailing Ltd) operating in Adelaide from 1ST July 2017.These statements have been presented to the Board of Directors.One of the Board members pointed out that the new business acquired by World Retailing is a construction company.Coming up with insightful explanations by going over a company’s annual reports and assessing tax expenses is an error prone task.Our accounting assignment services provide help with all sorts of Corporate Accounting assignments.The cost of the plant was 5 000 and it had accumulated depreciation of 000.In addition, the World Retailing Ltd acquired 100 per cent of the shares of Adelaide Retailing Ltd on 1 July 2017-that is two years earlier. At that date the capital and reserves of Adelaide Retailing Ltd were: At the date of acquisition all assets of Adelaide Retailing Ltd were considered to be fairly valued.