ACC 303 Company Accounting: Assignment

Details of Assignment:

The class will be ideally grouped into teams of 3. You must discuss the selection of teams with your lecturer who may decide to allocate you into teams or form teams using a random process. Your lecturer may accept a team of 4 members - but you need to discuss this with your lecturer, obtain approval and finalise your team members.

Select a set of financial statements for a group of companies and obtain approval from your lecturer for the group of companies that you have selected. Please note that two teams may not work on the same group of companies so if another team has already registered their interest in the particular group of companies you will be requested to select a different group of companies.

Read the annual report including the financial statements of the group and write a memorandum to the board of directors clearly explaining some of the technical aspects of consolidation. Make sure that you draw on the group company's specific details to explain the intricacies of consolidation to the board, and as much as possible avoid answering in general terms. Please note that your response MUST be in the format of MEMO - a report format will not be marked.

Some of the aspects that you need to cover as a team are (but not restricted to):

1. The composition of the group; namely the subsidiaries, associates, any joint ventures and any other significant investments. The group's main business operations

2. Why did the parent entity have to prepare consolidated financial statements when the subsidiary company is a separate legal entity in its own right?

3. How is the group of companies funded? Share capital, debentures? Any options, bonus issues etc. Who owns the group?

4. Does the published set of group financial statements reveal the company's policy on corporate governance? Audit committees? Sustainability? Solvency? Should it? If so, where and why?

5. The non controlling interest - where would you find it in the financial statements and what does it represent? Details of any direct and indirect non controlling interest?

6. Has there been any goodwill on acquisition? Or any gain on bargain purchase? Where would you find it in the financial statements and what does it mean? Any impairment?

7. Does the group have any foreign currency transactions? Any foreign subsidiary companies? How have they been accounted for in the financial statements?

8. Any other relevant matter that you may wish the board of directors to make note of in respect of some transaction or event, balance of account or disclosure that will assist them in understanding the financial statements of the group.

I need ans for Q-1,2 and 7 and the company is virgin Australia, no word limit as much as nodded to answer the question.