This is my final assessment. It should be 2500 words. Submission is 16th of october. Minimum 8 harvard style refrences including intext citation. All the instructions are attached below. If you...

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This is my final assessment. It should be 2500 words. Submission is 16th of october. Minimum 8 harvard style refrences including intext citation. All the instructions are attached below. If you require further information i can provide but please make sure it is realy good as it consists 50% marks.
Answered 4 days AfterOct 10, 2021

Answer To: This is my final assessment. It should be 2500 words. Submission is 16th of october. Minimum 8...

Ayushi answered on Oct 14 2021
112 Votes
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ACCT209 Assessment 3: Case Study Report:
Contents
Case Study 1: Fiji Ltd    3
Question 1:    3
Question 2:    4
Case Study 2: CSR Ltd    5
Question 3:    5
Question 4:    6
Question 5:    7
References:    8
Case Study 1: Fiji Ltd
Question 1:
When equity interests are acquired less than 100%, then in such a case it is called as partial acquisition such business by an organization. Acquisition can be done in steps like a series of different transactions taking place at different time intervals or over a time period. Such an acquisition is k
nown as step acquisition where control is obtained by the company through these multiple transactions. In case the acquiring company sells any part or shares or its part of interest, the accounting treatment of such a transaction would vary according to the fact that the acquiring organization still continues to control the operations of the acquired business (5.2 Accounting for changes in ownership interest, 2021). There are different cases which explain the accounting treatment of changes in ownership clearly:
1. Partial acquisition: partial acquisition implies that the control of the subsidiary has been obtained but the acquisition of business is done less than 100%. In such a case consolidation is done on the date on which the control of the subsidiary has been obtained by the parent company. Recognition of the identifiable assets and liabilities and the goodwill is one on 100% basis. After that the non controlling interest is recognized at fair value as a part of the equity.
2. Step acquisition: step acquisition implies that acquisition is done in series or step by step. As more interest is acquired, then control is acquired by the parent in case there is already equity interest available in the subsidiary. In such a case consolidation is done by the parent company on the date when control of the subsidiary is obtained. The equity interest which was already available in the subsidiary is measured again at the fair value and if any difference arise between the carrying value of the equity interest and its fair value, then such difference should be recognized in the income as a gain or loss. The identifiable assets and liabilities including the goodwill are recognized by the parent company at 100%. The non controlling interest is recognized at fair value in case acquisition is less than 100%.
3. Ownership interest of the parent is reduced: in case the control is also reduced and control is shifted to non controlling investment; then in such a case the investment done in the subsidiary is deconsolidated. The non controlling interest which is remaining is measured at fair value. If there is any gain or loss due to re-measurement of non controlling interest and also that has arise during the sale of the interest; then such gain loss should be recognized as a part of the income.
4. Ownership interest of the parent has been increased or addition is done: in this case if the share is increased or decreased but the control the parent company has on the subsidiary is maintained; then it is treated as an equity transaction and no recognition is done in the income statement in relation to any gain or loss arise during such a transaction. The difference that has arisen between the consideration’s fair value and in relation to this the carrying value belonging to the non controlling interest is recognized in the equity of the parent or controlling organization.
There are two cases for change in ownership:
1. Change in ownership in the subsidiary company due to which loss of control would not be there: if there are any changes done by the parent in the ownership interest that it has in the subsidiary company, then such changes like selling some shares back to the subsidiary would not result in losing control in the subsidiary. As the non controlling interest which the parent company has in the subsidiary is shown separately in equity portion, therefore any changes in the ownership would not result in losing the control.
2. Change in ownership in subsidiary company due to which there would be loss of control: the loss of control occurs only in the case that the controlling interest in the subsidiary is sold by the parent whether in a single or multiple series of transaction (Change in Ownership in a Subsidiary - IFRS 10 Best Complete Read – Annual Reporting, 2021). It leads to de-recognition of interest in the books.
In the current case Fiji ltd has acquired 70% of the ownership interest in the guan ltd, which makes Fiji ltd as the parent company of guan ltd and guan ltd as the subsidiary. Further 5% more share was acquired by Fiji ltd in guan ltd which increased its share or ownership interest in guan ltd. If Fiji ltd has sold 40% of its share back to guan ltd then this would not result in losing of control of guan ltd by Fiji ltd as non controlling interest is shown as a separate component during the presentation of equity in the consolidated financial statements. So if the shares are sold it would lead to changes in the ownership interest but not control. So it can be said the Fiji ltd still has control over guan ltd.
Question 2:
Fiji ltd is required to prepare the financial statements in addition to guan ltd which implies that consolidated financial statements are required to be prepared by Fiji ltd at the date when the...
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