15% INDIVIDUAL PROJECT
Submission Date: TO BE DISCUSSED IN CLASS
The following assignment is to be presented in a word document of no more than 1,000 words excludingbibliography.
All sources must be correctly cited, using Harvard Referencing. ALLinternet material must be referenced in the bibliography section. Students are encouraged to use the Harvard Referencing Standard supplied by the Library. To use other author's written or electronic work is illegal (plagiarism) and may result in disciplinary action. Students may be required to undergo a viva (oral examination) if there is suspicion about the validity of their submitted work.
Ensure that your assignment contains the following:
Marks will be awarded for presentation and flow of report.
Prepare a report to your audit manager discussing each of the following scenarios.
Briefly discuss the two accounting treatments for non controlling interests under IFRS3 Business Combinations giving an example of each method to explain your answer. The example should NOT BE taken directly from any text book or other resource.
When compared with IAS 17, IFRS16 represents a significant change in the approach to accounting for leases. Briefly compare the accounting treatment for leases under IAS 17 and IFRS 16.
Peaches plc prepares its financial statements to 31 March 2018. The finance manager has asked you to explain how the following transactions should be treated in the financial statements for the year ended 31 March 2018 in v. Calculations required.
On 1 April 2018 Peaches sold maturing inventory that cost €3.5m to a finance company, XZK, for €6m. The estimated market value of the inventory is in excess of €6m. The inventory will not be ready for sale until 31 March 2021 and will remain on Peaches premises until this date. The sale contract includes a clause allowing Peaches to repurchase the inventory at any time up to 31 March 2021 at a price of €6m plus interest at 8% per annum compounded from 1 April 2017. The inventory will include storage costs until maturity. The cost of storage for the current year of €450,000 has been included in the trade receivables (in the name of the finance company XZK). If Peaches chooses not to repurchase the inventory XZK will pay the accumulated storage costs on 31 March 2021. The proceeds of sale have been debited to the bank and the sale has been included in Peaches sales revenue.