BUACC2603 CORPORATE ACCOUNTING
SEMESTER 3, 2016
Companies are continuously changing the composition of their assets and liabilities. Assets such as inventories are acquired on a regular basis while plant and equipment is acquitted less often. In other circumstances groups or bundles of assets or net assets are acquired. In order for AASB 3 to be applied the transaction must be considered to be a ‘business combination’ (Loftus, Leo, Picker, Wise & Clark, 2013, p.772).
- With reference to the above statement describe what is meant by a business combinationAASB 3 Business Combinations.
- Discussthe importance of identifying the acquirer of a business combination.(Consider the levels of controland the members’ rightsin your answer).
- Comment on the fact there may be assets and liabilities that have not been recognised by the acquiree but are recognisable by the acquirer. Give three examples to support your viewpoint.
The following matters should be given particular attention:
- Your assignment must be submitted no later than the Friday ending week 10. Assessment tasks submitted after the due date, without prior approval/arrangement, will be penalised at 10% of the available marks per day. Requests for extension of time must be made with the lecturer concerned and based on Special Consideration guidelines.
- In your assignment use a 12-pt Times New Roman font, use 2 cm margins on all four sides of your page and 1.5 line spacing.
- Evidence of extensive research beyond the prescribed text is required. Ensure these are referenced appropriately. Refer to the statement regarding plagiarism.
- This assignment must be handed in for successful completion of the course and will count 25 marks towards the final mark.
- Marks have been allocated to each specific section of your assignment.
- The assignment is to be conducted in groups of two. Students do not have the option to extend or reduce the size of the group.The lecturer, in the evaluation of the group submission and each individual’s contribution, may require any or all of the members of the group to discuss various aspects of the assignment.
- All assignments are to be uploaded to Moodle. Should you need assistance, please use the available resources and support through the drop-down menus in Moodle or speak to your lecturer/tutor.
- Refer to the marking guide (attached) for additional information and requirements.