BFA301 Advanced Financial Accounting
Semester 2 2019 Individual Case Study Assignment: 20% Thyme Publishing Ltd
Introduction
Thyme Publishing Ltd is a publicly listed company located in Melbourne. The company, founded in 2001, has undertaken a growth and expansion phase in recent years, particularly with its online business and diversification into graphic design. It is now recognised as a major Australian bookseller, publisher, and digital graphic designer in Australia and New Zealand.
Thyme Publishing Ltd has three entities that it controls:
- Island Publications Ltd (Hobart, Tasmania) (60% of the share capital owned).
- Creative Design Pty Ltd (Paradise, Tasmania) (100% of the share capital owned). ï· Cloud Press Ltd (Christchurch, NZ) (100% of the share capital owned).
You have been appointed as group accountant for Thyme Publishing Ltd. As such you are required to prepare consolidated financial statements for the Parent and its Subsidiaries for the year ended 30 June 2019. In addition, the board have requested that you provide a brief report on the consolidation policies of an ASX 200 company to assist in their deliberations for Thyme Publishing’s 2020 vision & strategic planning for the future. Further details are provided at the end of this document. ï· Questions about the content of this assignment MUST be posted on MyLO.
General Information about Thyme Publishing Ltd
- The presentation currency for the group is AUD.
- Thyme Publishing Ltd treats Cloud Press (NZ) Ltd as a foreign entity according to AASB121 and uses the current rate method to translate financial information.
- The functional currency for Cloud Press Ltd is NZD. You will first need to translate the New Zealand operations into the presentation currency of the group before applying consolidation principles.
- The management of Thyme Publishing Ltd values any nonâcontrolling interest at the proportionate share of Island Publications identifiable net assets, using the partial goodwill method (AASB3).
- Thyme Publishing Ltd recognises a receivable for dividends when they are declared by a subsidiary. o All entities within the group use the perpetual inventory method. o The group uses the direct method to present cash flows from operating activities. o Round to the nearest dollar for ALL journal entries and calculations (NOT ‘000s or $m). o Expenses need to be classified by function in the consolidated financial statements. o For all financial statements, you may use either $ OR $’000 (NOT $m) but all must be the same. o The Australian income tax rate is 30%. New Zealand’s company tax rate is 28%.
Additional Information relating to Island Publications Ltd:
- On 1 July 2017, Thyme Publishing Ltd acquired 60 per cent of the share capital of Island Publications Ltd for $1 500 000 cash. An extract of Island Publications Ltd’s balance sheet immediately before the acquisition is shown below:
- On 1 July 2017, Island Publications Ltd had recorded all its identifiable net assets at fair value, except for plant which cost $550 000 and had a carrying amount of $450 000. The fair value of the plant was assessed at $480 000. It was expected to have a further useful life of 5 years and the benefits are expected to be consumed evenly over this period. The plant had not been revalued in the books of Island Publications Ltd prior to consolidation.
- On 30 June 2018, 10% of Island Publications Ltd’s inventory was sold to Thyme Publishing Ltd at a profit of $35 000. All of this inventory had been sold to external entities by 30 June 2019.
- On 1 July 2016, Thyme Publishing Ltd purchased 100 per cent of the shares of Creative Design Pty Ltd for $700 000 cash. An extract of Creative Design Ltd’s balance sheet immediately before the acquisition is shown below:
- At the time of investment, the liabilities of Creative Design Pty Ltd were all recorded at fair value, except for a contingent liability relating to an ongoing legal dispute. Creative Design Pty Ltd was being sued for an amount of $75 000 in a wrongful dismissal case. Lawyers advised that there was an 80% chance they will lose. The case remained outstanding at acquisition and therefore a contingent liability was disclosed in the notes of Creative Design Pty Ltd. Six months after acquisition Thyme Publishing Ltd intervened and negotiated a $60,000 payment to settle the case out of court. Creative Design Pty Ltd recorded an expense for the $60,000 for the period ending 30 June 2017.
- A comparison of the carrying amounts and fair values of its identifiable assets indicated no differences except for an internally generated intangible asset (a publishing title with a fair value of $20,000) and the furniture shown below, which is depreciated on a straightâline basis and has an
- On 1 February 2017, Creative Design Pty Ltd entered into a rental agreement with Thyme Publications Ltd to rent a spare warehouse to use as a studio. The agreement was for 5 years and specified a payment of $6 000 p.a. to be paid annually in advance on 1 February.
- On 1 January 2018, Creative Design Pty Ltd sold equipment costing $125 000 to Thyme Publications Ltd for $130 000. Creative Design Pty Ltd had not charged depreciation on the equipment as it had only purchased it from an external entity on 28 December 2017 at an end of year sale. Both companies depreciated equipment at 10% straightâline on cost.
- On 20 May 2019 Creative Design Pty Ltd purchased inventory from Thyme Publishing Ltd for $30 000. This inventory had previously cost Thyme $24 000. Creative Design Pty Ltd had not paid Thyme Publishing Ltd for these goods as at 30 June 2019, but at that date Creative Design Pty Ltd had already sold 58% to external parties. Creative Design Pty Ltd sold the remainder of the goods to an external party on the 9 July 2019 for a total profit of $20 000.
- On 30 June 2019, Thyme Publishing Ltd acquired all the issued shares of Cloud Press Ltd, an online publishing company based in Christchurch, New Zealand, for AUD$420 000 cash. Cloud Press (NZ) Ltd’s income statement and balance sheet (given in NZ dollars) immediately before the acquisition is shown in the attached excel worksheet.
- Sales and other expenses were incurred evenly throughout the period ended 30 June 2019.
- Relevant exchange rates are as follows: (these are fictitious for the purposes of this assignment)
Island Publications Ltd |
|
Shareholders' equity |
|
Share capital |
1,400,000 |
General reserve |
600,000 |
Retained profits |
150,000 |
Additional Information relating to Creative Design Pty Ltd:
Creative Design Pty Ltd |
|
Shareholders' equity |
|
Share capital |
450,000 |
General reserve |
100,000 |
Retained profits |
230,000 |
expected further useful life of 7 years (from acquisition). It has no residual value.
Carrying amount Fair Value Furniture (cost $108 500) $90 000 $94 500
The publishing title has an indefinite life and is therefore tested for impairment annually. It has not
been impaired.
Additional Information relating to Cloud Press (NZ) Ltd:
1 July 2016 |
1 NZD = AUD$0.90 |
1 July 2017 |
1 NZD = AUD$0.92 |
1 July 2018 |
1 NZD = AUD$0.94 |
30 June 2019 |
1 NZD = AUD$0.95 |
Average rate for the year 2019 |
1 NZD = AUD$0.93 |
Ending inventory acquired |
1 NZD = AUD$0.96 |
The working income statements and balance sheets of Thyme Publishing Ltd, Island Publications Ltd, Creative Design Pty Ltd and Cloud Press (NZ) Ltd for the year ended 30 June 2019 are provided to you, as group accountant, by the financial accountants of the respective entities. They are shown in the accompanying excel spreadsheet document (in the worksheet tab).
Required
Thyme Publishing Ltd has asked you to prepare a full set of Consolidated Financial Statements for the group for the year ended 30 June 2019 in accordance with applicable accounting standards. In addition, you have been asked to provide a brief report on the subsidiaries and consolidation policies of the ASX 200 company assigned to you. The purpose is to compare and contrast the policies, decisions and outcomes (financial statements) with those of Thyme Publishing to assist the Thyme board with their 2020 vision & strategic planning for the future.
Specific Requirements:
In a WORD document prepare a professionally presented report that sets out the following in this ORDER:
- COVER PAGE: An original cover page that includes your name, ID number, unit, assignment name, date. DO NOT include the TSBE assignment coversheet. You declared in your MyLO student agreement that you agreed to abide by the university plagiarism rules and that ALL work you submit for assessment is your own work. Turnitin plagiarism detection software will be used.
- An executive summary (150 words) explaining the content of your report. This should be presented on the next page by itself. You may include a separate content page on the following page if you wish but this is not required.
- ASX200 Co. comparison: In your own words write a brief report (250 words) on the consolidation policies and latest consolidated financial statements of the ASX200 company you chose to research. Reference accounting standards used. Choose ONE company from the list provided on Selfâselection will be OPEN for 1 week from 12noon on 12/9/19 to 19/9/19 (similar to tutorial signâups on MyLO Announcement). Only ONE student per company. After this time unenrolled users will be allocated a company – no choice. Please double check the list before submitting your assignment. If you submit on another company (not the one allocated on MyLO) you forfeit all marks assigned to this component. Your report must include a discussion that compares and contrasts what you have prepared for Thyme Publishing Ltd with the ASX200 company. You may use a table to compare and contrast. Google your company’s website to download their latest Annual Report and financial statements. Alternatively, go to ASX https://www.asx.com.au/asx/research/listedCompanies.do - Scroll to find your company then click on the code to access all your company’s information including the latest Annual Report (see on right hand side under ‘Resources’).
- SAMPLE statement âASX200 Co: Scan or use ‘print screen’ or ‘snipping tool’ to cut and paste a copy of ANY ONE current financial statement from your ASX200 company. Your statements for Thyme Publishing Ltd should have the same professional appearance.
- An acquisition analysis for each of the controlled entities of Thyme Publishing Ltd.
- Translation of foreign subsidiary’s accounts: Translate the accounts of the foreign subsidiary, Cloud Press (NZ) Ltd, into Australian dollars before applying consolidation principles. Show NZD, relevant exchange rate, AUD for each account and Verify the translation difference.
- Consolidation journals: In order of the additional information provided above. All consolidation eliminations and adjusting journal entries (including nonâcontrolling interest calculations and journal entries) required for the preparation and presentation of consolidated financial statements of Thyme Publishers Ltd and its controlled entities for the year ended 30 June 2019. Please write out account names in FULL at ALL times – NO ABREVIATIONS. USE narratives & calculations for each journal entry. Include an explanation if you chose to exclude or omit anything.
- Professionally presented financial statements. This includes a consolidated Statement of Comprehensive Income; consolidated Statement of Changes in Equity; a consolidated Statement of Financial Position; consolidated Statement of Cash Flows and any applicable notes for Thyme Publishing Ltd and its controlled entities for the year ended 30 June 2019.
These financial statements are required to be set out in accordance with AASB 101 Presentation of Financial Statements. To apply AASB 101, you should follow the formats you learnt about in the preârequisite unit BFA201 (or equivalent unit) plus any other requirements you have learnt in this unit for Consolidated Financial Statements (e.g. nonâcontrolling interests). Please also refer to the illustrative examples for Australian public companies provided on MyLO & your ASX200 company.
- SUBMIT A SEPARATE EXCEL FILE showing your completed consolidation worksheet incorporating the adjustments, eliminating and nonâcontrolling entries. All adjusting items in the worksheet must have a reference to the corresponding journal entry.
It is recommended that you also use an excel spreadsheet to set out all above requirements (5â8) then copy these to each page into your word document.
For completion of the financial statements, please note the following:
The financial statements will be an abridged version from three perspectives:
- Comparison figures are provided for the Statement of Financial Position, but for other statements you will need to use xxx’s where data are not available.
- Note 1: You do not need to list all accounting policies as part of Note 1 – just reference those applicable to the consolidation process and this assignment.
- ‘Earnings per share’ – has not been covered in this unit. Therefore, you do not need to include the ‘Earnings per share’ information at the end of SPLOCI.
- Do not include a ‘Director’s report’ this is part a financial “report” NOT the full set of financial statements.
- Do not include references to specific accounting standards on the face of the statements. Where relevant this information should only be in the notes.
- To assist with completion of the Statement of Changes in Equity, assume there were no other movements in Share capital during the financial year other than what is provided in additional information above.
- Use ONLY the Australian content guidelines as per KPMG illustrative disclosures.
- Markers will be instructed to give ZERO where there has been little/no attempt to apply professional standards to the construction of statements eg. Cutting and pasting the worksheet list of accounts as presented in the worksheet will attract a default mark of zero.
The assignment is due on Monday 30 September 2019 at 5.00pm and is worth 20% of your overall grade. Week 10 has been set aside as an independent study week to allow you time to dedicate to this assignment.
Please note the following:
- An electronic copy of your assignment needs to be submitted to the relevant BFA301 MyLO assignment dropbox by the due date and time. The file name is to include your name and ID.
- Please also submit a hard copy of the assignment (collated in the order noted above). As campus assignment boxes have been removed, please HAND TO YOUR TUTOR. The due date and time for hard copies is your normal Week 11 tutorial. Monday tutorials may submit to the Unit Coordinator on Tuesday. Please just drop your assignment into the 9am or 10am Tuesday tutorial before the start of class. Penalties will apply for late submission of both online and hard copies. Hard copy submissions MUST be exactly the same as the assignment submitted online by due date.
- Hard copies will not be returned. Marked up assignments will be available online together with feedback and graded rubrics once marks are released.
- This is an individual assignment. Under no circumstances should you share your workings or any part of your assignment with other students. This constitutes academic misconduct and action will be taken. All similarity reports on Turnitin will be thoroughly checked for matching with other assignments.
- WORD LIMIT: NO word limit EXCEPT: Executive Summary (150 words); ASX200 report (250words)
Assignment Service Australia | CDR Writing Help | TAFE Assignment Help | Perth Assignment Help | Melbourne Assignment Help | Darwin Assignment Help | Adelaide Assignment Help | Assignment Help Victoria | Sydney Assignment Help | Canberra Assignment Help | Brisbane Assignment Help | CDR for Australian immigration | Course For Australian History
Diploma Universities Assignments
- Laureate International Universities Assignment
- Holmes Institute Assignment
- Tafe NSW
- Yes College Australia
- ACC508 Informatics and Financial Applications Task 2 T2, 2019
- ACC512 Accounting
- ACC520 Legal Regulation of Business Structures Semester 2, 2019
- ACCT20074 Contemporary Accounting Theory Term 2 Assessment 3
- AERO2463 Computational Engineering Analysis : Assignment 4
- B01DBFN212 Database Fundamentals Assessment 1
- BE01106 - Business Statistics Assignment
- BFA301 Advanced Financial Accounting
- BFA504 Accounting Systems Assessment 3
- BSB61015 Advanced Diploma of Leadership and Management
- BSBADV602 Develop an Advertising Campaign
- BSBCOM603 Plan and establish compliance management systems case study
- BSBCOM603 Plan and establish compliance management systems Assessment Task 1
- BSBCOM603 Plan and establish compliance management systems Assessment Task 2
- BSBCOM603 Plan and establish compliance management systems Assessment Task 3
- BSBFIM501 Manage Budgets And Financial Plans Assessment Task 1
- BSBHRM602 Manage Human Resources Strategic Planning
- BSBINM601 Manage Knowledge and Information
- BSBWOR501 Assessment Task 3 Plan Personal Development Plan Project
- BSBMGT517 Manage Operational Plan
- BSBWHS521 Ensure a Safe Workplace For a Work Area
- BSBWRK510 Manage employee relations
- BUSS1030 Accounting, Business and Society
- CAB202 Microprocessors and Digital Systems Assignment Help
- CHC40213 Certificate IV in Education Support
- CHCAGE001 Facilitate the empowerment of older people
- CHCAGE005 Provide support to people living with dementia
- CHCCCS023 Support independence and wellbeing
- CHCCCS025 Support relationships with carers and families
- CHCCOM005 Communicate and CHCLEG001 Work Legally Ethically
- CHCDIS002 Follow established person-centred behaviour supports
- CHCECE019 Early Childhood Education and Care
- CHCHCS001 Provide home and community support services
- COMP10002 Foundations of Algorithms
- COMP90038 Algorithms and Complexity
- COSC2633/2637 Big Data Processing
- COSC473 Introduction to Computer Systems
- CPCCBC5011A Manage Environmental Management Practices And Processes In Building And Construction
- CPCCBC5018A Apply structural Principles Medium rise Construction
- CSE3OSA Assignment 2019
- ELEC242 2019 Session 2
- ENN543 Data Analytics and Optimisation
- ENN543 Data Analytics and Optimisation Semester 2, 2019
- FINM202 Financial Management Assessment 3 Group Report
- Forensic Investigation Case Assignment ECU University
- HA2042 Accounting Information Systems T2 2019
- HC1010 Holmes Institute Accounting For Business
- HC2112 Service Marketing and Relationship Marketing Individual Assignment T2 2019
- HC2121 Comparative Business Ethics & Social Responsibility T2 2019
- HI5002 Holmes Institute Finance for Business
- HI5003 Economics for Business Trimester 2 2019
- HI5004 Marketing Management T1 2020 Individual Report
- HI5004 Marketing Management T1 2020 Group Report
- HI5004 Holmes Institute Marketing Management
- HI5014 International Business across Borders Assignment 1
- HI5014 International Business across Borders
- HI5017 Managerial Accounting T2 2019
- HI5017 Managerial Accounting T1 2019
- HI5019 Tutorial Questions 1
- HI5019 Strategic Information Systems for Business and Enterprise T1 2020
- HI5019 Holmes Institute Strategic Information Systems T2
- HI5019 T2 2019
- HI5019 T1 2019
- HI5020 Corporate Accounting T3 2019
- HI5020 Corporate Accounting T2 2019
- HI6005: Management and Organisations in a Global Environment
- HI6006 Tutorial questions
- HI6006 Competitive Strategy Individual T1 2020
- HI6006 Holmes Institute Competitive Strategy
- HI6006 Competitive Strategy T3 2019
- HI6007 Statistics for business decisions
- HI6007 Assessment 2 T1 2020
- HI6007 T1 2019
- HI6008 T2 2019
- HI6008 Holmes Institute Research Project
- HI6025 Accounting Theory and Current Issues
- HI6026 Audit, Assurance and Compliance Assignment Help
- HI6026 Audit, Assurance and Compliance
- HI6027 business and corporate law tutorial Assignment T1 2021
- HI6027 Business and Corporate Law T3 2019
- HI6027 Business and Corporate Law T2 2019
- HI6028 Taxation Theory, Practice and Law T2 2021
- Hi6028 taxation theory, practice and law Final Assessment t1 2021
- HI6028 Taxation Theory, Practice and Law T2 2019
- HI6028 Taxation Theory T1 2019
- HI6028 Taxation Law Holmes
- HLTAAP001 Recognise healthy body systems
- HLTWHS002 Follow safe practices for direct client care
- HOTL5003 Hotel Property and Operations
- HPS771 - Research Methods in Psychology A
- HS2021 Database Design
- ICTICT307 Customise packaged software applications for clients
- IFN619 Data Analytics for Strategic Decision Makers
- INF80028 Business Process Management Swinburne University
- ISY2005 Case Assignment Assessment 2
- ISYS326: Information Systems Security Assignment 2, Semester 2, 2019
- ITAP3010 Developing Data Access Solutions Project
- ITECH1103- Big Data and Analytics â Lab 3 â Working with Data Items
- ITECH1103- Big Data and Analytics Assignment Semester 1, 2020
- ITECH 5500 Professional Research and Communication
- Kent Institute Australia Assignment
- MA5830 Data Visualisation Assignment 2
- MGMT7020 Project Management Plan
- Mgt 301 Assessment 3
- MGT215 Project Management Individual Assignment
- MIS102 Data and Networking Assignment Help
- MITS4002 Object Oriented Software Development
- MITS5002 Software Engineering Methodology
- MKT01760 Tourism Planning Environments Assessment 4
- MKT01760 Tourism Planning Environments
- MKT01906 International Tourism Systems
- MKT5000 Marketing Management S2 2019
- MNG03236 Report Writing SCU
- MRE5003 Industrial Techniques In Maintenance Management Assignment 4
- MRE5003 Industrial Techniques In Maintenance Management Assignment 3
- MRE5003 Industrial Techniques In Maintenance Management
- Network Security and Mitigation Strategies Answers
- NIT2213 Software Engineering Assignment
- NSB231 Integrated Nursing Practice Assessment Task 1
- Science Literacy Assessment 4
- SIT323 Practical Software Development T 2, 2019
- SIT718 Using aggregation functions for data analysis
- SITXCOM002 Show Social and Cultural Sensitivity
- TLIL5055 Manage a supply chain
- TLIR5014 Manage Suppliers
- USQ ACC5502 Accounting and Financial Management
- UTS: 48370 Road and Transport Engineering Assessment 2
- CHCAGE001 Facilitate the empowerment of older people
- CHCAGE005 Provide support to people living with dementia
- CHCCCS011 Meet personal support needs
- CHCCCS015 Provide Individualised Support
- CHCCCS023 Support independence and wellbeing
- CHCCCS025 Support relationships with carers and families
- CHCCOM005 Communicate and work in health or community services
- CHCDIS001 Contribute to ongoing skills development
- CHCDIS002 Follow established person-centred behaviour supports
- CHCDIS003 Support community participation and social inclusion
- CHCDIS005 Develop and provide person-centred service responses
- CHCDIS007 Facilitate the empowerment of people with disability
- CHCDIS008 Facilitate community participation and social inclusion
- CHCDIS009 Facilitate ongoing skills development
- CHCDIS010 Provide person-centred services
- CHCDIV001 Work with diverse people
- CHCHCS001 Provide home and community support services
- CHCLEG001 Work legally and ethically
- CHCLEG003 Manage legal and ethical compliance
- HLTAAP001 Recognise healthy body systems
- HLTAID003 Provide First Aid
- HLTHPS007 Administer and monitor medications
- HLTWHS002 Follow safe work practices for direct client care
- CORPFIN 7101 managerial finance assignment answers
- Assignment 2 Introduction to Digital Forensics
- MGT603 Systems Thinking Assessment 1
- MGT603 Systems Thinking Assessment 2
- Hi5017 Managerial Accounting T1 2021
- HI6028 Taxation Theory, Practice and Law T1 2021
- OODP101 Assessment Task 3 T1 2021
- ITNE2003R Network Configuration and Management Project