Chp 18: RQ1,2, 3, 4,5,9
Chapter 18 Consolidation: controlled entities
What is a subsidiary?
A subsidiary is an entity that is controlled by another entity, a parent.
What is meant by the term control?
Tut 3 Part 2 Tax effect Accounting
Current tax worksheet and entries for current and
At 30 June 2016, Grace Ltd had the following deferred tax balances:
Deferred tax liability
Deferred tax asset
Grace Ltd recorded
RQ 1,2,4,5,8, 9 Q15.1, Q15.8, 15.9
1. What constitutes a complete set of financial statements?
According to paragraph 10 of AASB 101, a complete set of financial statements comprises:
(a) a statement of financial position as at the end of the period;
Tut 4 Q n SS
Chp 12 : Q1,2,5, 6, 7, 8,11,Q12.2, 12.4
What is meant by a business combination?
AASB 3 Appendix A:
an integrated set of activities and assets that is capable of being conducted and managed for
the purpose of p
Property, Plant and Equipment
A. To determine that the property exists and is owned by the Business Unit.
B. To determine that additions to property are authentic, recorded at cost and properly
distinguished from maintenance and repairs expens
Tut 2 ACC705
Chp 6 : RQ 2,3, Q6.1, 6.2, 6.4
2. Explain why income tax expense is usually not equal to accounting profit
multiplied by the corporate tax rate. Your answer should refer to the main
principles of accounting for income tax.
Chp 2: RQ 1, 5, 7, 8, 9 & 13, Q2.6, 2.18
Explain the nature of a share. Distinguish between an ordinary share and a preference share.
Basically, a share represents ownership of a portion of the share capital of a company. Also note t
Business combination valuation entries, pre-acquisition
On 1 July 2016, Mutt Ltd acquired all the issued shares of Jeff Ltd for $174 800. At this date the
equity of Jeff Ltd consisted of share capital of $80 000 and retained earnings
DQ 1,4, 8, 9 Q19.1 & 19.3
1. Explain the purpose of the pre-acquisition entries in the preparation of consolidated
The purpose of the pre-acquisition entry is to:
- prevent double counting of the assets of the econ