Corporate Reporting Group Case Study Assignment
Question 1 - Wild and van Staden (2013, p. 6) argue that stand-alone reports relevant to social and environmental activities are non-integrated. Therefore, they are not capable to evaluate business performance, strategy and potential for value creation for different types of stakeholders (cited in Bernardi, 2015). Integrated reporting evolves due to response to this criticism (Bernardi, 2015).
Required: Critically discuss the above statement and briefly explain the role of integrated reporting by identifying the problems associated with tradition financial reporting. Choose a company listed on the ASX and identify whether the company prepare integrated reporting or not?
Question 2 - At the end of its financial year, Roxy Ltd. took the following information from its accounting books of record.
Trial Balance as at 30 June, 2017
|
Debit AUD $
|
Credit AUD $
|
|
Land
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10,200,000
|
|
|
Buildings
|
40,000,000
|
|
|
Vehicle
|
2,500,000
|
|
|
Accumulated depreciation- buildings
|
|
4,000,000
|
|
Accumulated depreciation- vehicles
|
|
500,000
|
|
Investments
|
35,000,000
|
|
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Cash at Bank
|
1,000,000
|
|
|
Accounts receivables
|
4,495,000
|
|
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Inventory
|
21,500,000
|
|
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Share capital
|
|
67,000,000
|
|
Calls in advance
|
|
2,000,000
|
|
Retained earnings***
|
|
2,600,000
|
|
Mortgage payable on land and buildings
|
|
20,000,000
|
|
Bank overdraft
|
|
7,500,000
|
|
Accounts payable
|
|
2,000,000
|
|
Sales revenue
|
|
24,000,000
|
|
Interest on investments
|
|
1,000,000
|
|
Rent revenue
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|
750,000
|
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Cost of sales
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11,000,000
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|
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Selling Commission expense
|
100,000
|
|
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Delivery expense
|
200,000
|
|
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Salaries: Travellers
|
450,000
|
|
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Salaries: Administration
|
2,000,000
|
|
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Directors fees
|
200,000
|
|
|
Audit fees
|
90,000
|
|
|
Interest on mortgage
|
1,000,000
|
|
|
Damage due to fire
|
150,000
|
|
|
General expenses
|
1,465,000
|
|
|
$131,350,000
|
$131,350,000
|
Note: Retained earnings is after deducting last year's final dividend of $2,500,000 and an interim dividends for this year of $1,500,000.
Additional Information
i. Depreciation on vehicles at the rate of 10% p.a. and on buildings at the rate of 5% p.a. for the whole year
ii. The allowance for doubtful debts at 30 June 2017 is estimated to be $160,000
iii. Unrecorded and unpaid travellers' salaries amount to $100,000
vi. Prepared expenses amount to $15,000
v. Income tax provided for totals $3,504,000
vi. A final dividend is recommended for a total of $2,500,000
vii. $1,000,000 is to be transferred to a general reserve
ix. Roxy Ltd pays income tax at the rate of 30%.
x. On 21st June 2017, Roxy Ltd was notified of an impending legal suit for $17,000 against the company for breach of contract. The case was settled 15th July 2017
xi. The share capital consists of 67,000,000 ordinary shares of $1 each
xii. On 20 September 2017, Roxy Ltd issued 100,000 fully paid shares to acquire the net assets of ABC Pty Ltd at price of $2.5 per share.
xiii. On 28 July 2017 the Commonwealth government enacts legislation altering the company income tax rate from 39 per cent to 42 per cent for all income tax returns from 1 July 2017
Required:
1) Prepare necessary adjusting journal entries for the above events.
2) Prepare a Statement of Comprehensive Income, a Statement of Financial Position and a Statement of Changes in Equity for ROXY Ltd for the year ended 30th June 2017 in accordance with the requirements of AASB 101.
3) Prepare at least fifteen (15) notes to the financial statements according to the relevant accounting standards.
Just need solution to Q2. Example is also attached.
Attachment:- Assignment Files.rar