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The practical project involves two parts: I Part A is the...

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The practical project involves two parts: I Part A is the...

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Cotter for year ended 30 June 2023. Cassie incurred the following transactions with Cotter for year ended 30 June 2024: . Cassie made sales of inventory to Cotter of $60,000, while Cotter sold $50,000 of inventory to Cassie. Closing inventories on 30 June 2024 included the following amounts: Cassie $25,000 (bought from Cotter) and Cotter $30,000 (bought from Cassie). Cotter has several long-term loans, including a five-year loan for $45,000 from Cassie. This intra-group loan was effective from 1 July 2023. Interest rate was 3.5% per annum. During the year ending 30 June 2024, Cotter paid $1000 interest on this loan. Cassie provided management consultation to Cotter and this was the first time that Cassie provided such service to Cotter. At the end of 2024, Cotter paid $3,000 for these services and has a balance of $1,000 payable at year end. You were requested to prepare the followings: I. acquisition analysis and adjustment/elimination journal entries for consolidation at acquisition, 1 July 2019. II. adjustment/elimination journal entries for consolidation as at 30 June 2023. III. adjustment/elimination journal entries for consolidation as at 30 June 2024. After meeting with your supervisor, you gathered the following information which you might need to complete your work: Cassie declared dividends $55,000 and paid dividends $35,000. Cotter declared and paid dividends $20,000. Management team of Cassie believes that goodwill acquired from business combination was impaired by $10,000 in 2022, $15,000 in 2023 and $30,000 in 2024. There was no impairment in 2020 and 2021. Cassie has the following accounting policies for the group: Revaluation adjustments on acquisition are to be made on consolidation only, not in the books of any subsidiary. All plants and machineries are depreciated using the straight-line method with no residual value. For part-years, depreciation is to be calculated on the number of months the asset is held in the relevant year. Intragroup sales of inventory to be at a mark-up of 10% on cost. A A All calculated amounts are to be rounded to the nearest whole dollar. Companies in the group do not show cents in any journals, worksheets, or financial statements. The company tax rate is 30% and this rate has not changed for several years. . Reporting date is 30 June. Journal narrations are required Number each year consolidation elimination/adjusting journal entries by 1, 2, 3, ..., etc. Where more than one journal entry is needed for an event to be completely accounted for add the letters a,b,c,...etc to them as necessary....
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Part B Cassie is an Australian company and growing very fast. The Board of Directors expressed the interest to acquire another business in India. The Board of Directors is concerned about some obstacles to acquire a business overseas. From financial accounting perspective, the Board raised the following question: "What are some possible impediments to acquire a business internationally, any possible plans/solutions to overcome those impediments? After a meeting with your supervisor, you were requested to prepare response/suggestions to the above question. You may make reference to relevant paragraphs of International Financial Reporting Standards, Conceptual Framework and to other sources of material....

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