HI6025 Accounting Theory and Current Issues - Assignment Help

Assessment Weight:   50 total marks

Instructions:

• All questions must be answered by using the answer boxes provided in this paper.
• Completed answers must be submitted to Blackboard by the published due date and time.
  

Please ensure you follow the submission instructions at the end of this paper.

Purpose:
This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit.

Question 1                                                                                                           (11 marks)

ABC Ltd has the following land and buildings in its financial statements as at 30 June 2022:

At 30 June 2022, the balance of the revaluation surplus is $908 520, of which $681 390 relates to the factory land and $227 130 to the buildings. On this same date, independent valuations of the land and buildings are obtained. In relation to the above assets, the assessed fair values at 30 June 2022 are:

Required:

Provide the journal entries to account for the revaluation on 30 June 2022. ABC Ltd classifies the residential land and the factory land as different classes of assets.

Question 2                                                                                                           (11 marks)

XYZ Ltd acquires 100 per cent of Red-X Ltd on 1 July 2021. XYZ Ltd pays the shareholders of Red-X Ltd the following consideration:

There are also legal fees of $249 267 involved in acquiring Red-X Ltd.

On 1 July 2021 Red-X Ltd’s statement of financial position shows total assets of $393 579 and liabilities of $393 575. The fair value of the assets is $1 049 544.

Required:

Has any goodwill been acquired and, if so, how much? And discuss the potential for including associated legal fees into the cost of acquiring Red-X using appropriate accounting standard.

Question 3                                                                                                             (7 marks)

Provide your opinion on relationship or differences between Accounting and accountability?

Question 4                                                                                                             (7 marks)

Provide your explanation on the legitimacy theory in relation to corporate social responsibility?

Question 5                                                                                                             (7 marks)

Explain about the existence of an active market in relation to the intangible assets and the accounting requirement for its valuation?

Question 6                                                                                                             (7 marks)

Explain the reason for higher reduction of a carrying value of a lease assets in comparison to the carrying value of a lease liability.

END OF FINAL ASSESSMENT

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