Corporate Accounting for LBX Pty Limited - myassignmenthelp.com

Question: Discuss about theCorporate Accounting for LBX Pty Limited. Answer: Investment relationship a- There are two shareholders of LBX Pty limited that is founder of LBX and MC. Owner of LBX that is Mr. T and Mrs. T. holds majority of shares. Entities are required to assess facts and circumstances for determination of control. MC is entitled to take all decisions of organization and they have majority of seats in board of directors. All the leading activities of LBX Pty limited is directed by MC while participating in such activities. MC is entitled to exercise control and functions over investee in accordance with paragraph 10 of AASB 10. As per B 36 of AASB, an investor can exercise control over the investee if they have majority of voting rights provided voting rights are functional (aasb.gov.au 2017). Therefore, MC can exercise power of control over LBX Pty limited. Investment relationship b- The requirement of control test and consolidation can be determined is required to assess protective rights. Applicability of such rights are don in some exceptional circumstances and when organization are required to make any fundamental changes. BBT has failed to make repayment of loan to MC due to uncertain economic climate. MC monitors the control of finances of BBT and its recording of expenses for the period of five years. Nonetheless, MC does not have any seats in the board of directors and therefore, they do not have any voting rights. In such scenario, no consolidation is required and they cannot exercise any control on board of directors. Investment relationship c- MC and BJL are the two shareholders of CTL that have equal voting rights in board of directors and have shares in board of directors. Management services of CTL is looked after by BJL for which they charge remuneration fees and MC is engaged in supplying loans. For determining the control in such scenario, investors are required to collectively engage in directing relevant activities. According to paragraph 9 of AASB 10, if an organization has two or more investors, then control cannot be exercised by individually and they are required to collectively engage in decision-making (aasb.gov.au 2017). Since, investors are not actively involved in decision-making and they are not cooperative, therefore they cannot exercise control over CTL. Each investors needs to account for their interest in controlling activities of investee accordance to AASB 11. Investment relationship d- PGH Pty Limited has three investors named MC, GJL and CCL each having equal share of 33.3%. MC has one seat in board of director and they are actively engage in managing activities. Other investors that is GJL and CCL are not actively engaged in directing and managing daily activities of PGH Pty limited, as they are passive investors. It is possible for investors to have more than passive interest that provides them with required power to direct the activities of business according to paragraph B-19 of AASB 10 (aasb.gov.au 2017). Hence, business of PGH would be controlled by MC although there does not exist any rights, they are fulfilling criteria of exercising control. Investmentrelationship e- MC holds majority of shares of JB-Hi-Fi Ltd, however they are not involved in any decision and have no seats in board of directors. Consolidation of assets has been resulted from their deficiency. MC does not enjoy voting rights despite having majority of shares (Zadeket al. 2013). In accordance with paragraph B-38 of AASB 10, an investor can exercise control despite not having voting rights (aasb.gov.au 2017). In the given situation, MC is a passive investor that does not have any voting rights and are not involved in directing activities. Therefore, control of JB-Hi-Fi does not rest in MC. Requirement a: In this particular scenario, Wiley and Sons Australia acquire 70% of shares of Wiley Plus Limited. Equity interest has been acquired by acquire by way of acquisition. Calculation of goodwill under such scenario is done at the date of acquisition and the amount is calculated of the fair value of interest rate of acquire. There is no transferring of equity interest and the determination of interest is done using valuation technique (Renner 2013). Requirement b: The additional ownership of acquisition of interest requires calculation of goodwill by referring to fair value adjustments. Value of assets recognized at the date of acquisition is used for deducting the loss generated from impairment (Zadek et al 2013). Requirement c: There are two possible ways for determining the goodwill valuation under consolidation of accounting. It is possible to have either 100% ownership or 50% ownership in any entity. In the first option, goodwill can be calculated as the difference between value of purchase consideration and share of net identifiable assets fair value for acquirer. In second option, goodwill can be computed as the difference between total net identifiable assets fair value and organizations fair value (Uyar 2016). References list: Aasb.gov.au. (2017). [online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB10_08-11.pdf [Accessed 11 Oct. 2017]. Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability assessment, management accounting, control, and reporting.Journal of Cleaner Production,136, pp.237-248. Ramesh, B., 2013. The role of forensic accounting in modern corporate accounting world.ZENITH International Journal of Multidisciplinary Research,3(1), pp.224-233. Uyar, A., 2016. Evolution of corporate reporting and emerging trends.Journal of Corporate Accounting Finance,27(4), pp.27-30. Zadek, S., Evans, R. and Pruzan, P., 2013.Building corporate accountability: Emerging practice in social and ethical accounting and auditing. Routledge. Zhang, N., 2014. Research on the Influence of Accounting Environmental Change on Financial Accounting Theoretical Innovation.

Bank Reconciliation free essay sample

The word â€Å"reconciliation† means to make two sets of amounts correspond with each other (i. e. make them equal to each other) by explaining why the two sets of amounts differ. Bank reconciliation  is the process of matching and comparing figures from accounting records against those presented on a  bank statement. Less any items which have no relation to the bank statement, the balance of the accounting ledger should reconcile (match) to the balance of the bank statement.Bank reconciliation  allows companies or individuals to compare their account records to the banks records of their account balance in order to uncover any possible discrepancies. Since there are timing differences between when data is entered in the banks systems and when data is entered in the individuals system, there is sometimes a normal discrepancy between account balances. The goal of reconciliation  is to determine if the discrepancy is due to error rather than timing. We will write a custom essay sample on Bank Reconciliation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page A bank reconciliation statement is a statement which indicates on a specific date why there is a difference between the bank account balance in the general ledger and the current account balance on the bank statement. Entries that appear on the bank statement, but are not recorded in the cash receipts journal or cash payments journal, are recorded in the relevant journal. The journals are therefore adjusted by the missing entries. Items recorded in the cash receipts journal or cash payments journal, but not appearing on the bank statement, are recorded in the bank reconciliation statement. * CAUSES OF DIFFERENCE:Differences between the cash book and the bank statement can arise from: †¢ Timing of the recording of the transactions †¢ Errors made by the business, or by the bank Also we can explain another way that the causes that lead to the disagreement of the balances in the cash book and the Pass book can be classified as follows: * Transactions that usually appear in t he cash book, but not in the pass book. * Transactions that usually appear in the pass book, but not in the cash book. Let us, now discuss in detail the nature of these transactions and show how they cause the difference in the balances of these two books. Transactions that Usually Appear in the Cash Book, but not in the Pass Book: When you compare the cash book entries with their corresponding entries in the pass book, you will find a number of transactions which appear in the cash book but not in the pass book. Such transactions have been discussed below. a) Cheques deposited into bank but not yet collected: When a payment is received by cheque, the firm sends it to the bank for collection and records it immediately on the debit side of the cash book. This increases the bank balance as per cash book. But the bank will not credit the firms account till the cheque is actually collected.So, the balance in the pass book remains unaffected till the proceeds of the cheque are collected and credited. Thus, on a particular date, it is possible that certain cheques which were sent for collection might not have been collected by the bank and so not shown in the pass book. All such cheques pending collection would make the cash book balance different from the pass book balance. For example, the firm sends a cheque of Rs. 2,000 on December 28, to the bank for collection. The cheque is collected on January 6. Now, if the balances as on December 31 are compared, they will be different because the credit of Rs. ,000 will not appear in the pass book by December 31. b) Cheques issued but not yet presented for payment: Whenever a payment is made by cheque, the cash book is immediately credited. Thus, it is possible when the pass book and the cash book are compared upto a particular date, there may be some entries which appear in the pass book but not in the cash book. Such transactions have been discussed below. a) Interest allowed by the bank, if any: The banks normally do not allow any interest on the current account balances. Some banks may however allow nominal interest. When interest is allowed, the bank credits it to the customers account. This increases the balance in the pass book. The firm would pass the corresponding entry in the cash book only when it receives the intimation from the bank or notices it in the pass book. Hence, the cash book balance will be lower till such entry is made. b) Amounts collected by the bank as per the standing instructions: The businessman often issues standing instructions authorizing his banker to collect on his behalf certain amounts due to him, such as interest, dividends, etc. The bank credits the customers account as and when it collects such amounts and sends the necessary intimation to him. The firm will pass the corresponding entry in the cash book when it receives such intimation. Sometimes the intimation may be misplaced and no entry is passed in cash book.Thus, as on the date of reconciliation, the balances as per the cash book will be lower than the balance as per the pass book. c) Direct payments into the bank made by firms customers: Sometimes, a customer may directly deposit an amount into a firms bank account. Firm shall record it in the cash book only when it learns about such deposit. But the pass book would show the entry on the date of deposit itself. If by the date of reconciliation, such entry has not been passed in the cash book, the balance shown by pass book will be higher than the balance as per cash book. ) Bank charges: The banks usually charge their customers for various service provided by them. They may charge for collection of outstation cheques, for making or collecting payments on standing instructions, and so on. The bank debits the customers account for such charges from time to time. However, the firm will know about these charges only when it goes through the pass book. So, on the date of reconciliation the pass book balance may differ from the balance as per cash book. e) Interest on overdraft: When a firm avails of an overdraft facility, the bank charges some interest which it debits to the firms account periodically.This would reduce the balance or add to the overdraft depending upon the nature of balance in the bank. However, the corresponding entry for interest on overdraft would be passed in the cash book only when the pass book is received. So, there may be a disagreement of the two balances on the date of reconciliation. f) Payments made by the bank as per the standing instructions: The businessman issues standing instructions to his banker to make certain payments on his behalf such as insurance premium, rent, etc. When the banker makes such payments, he would immediately debit the customers account. So, the balance in the pass book would get reduced. If the corresponding entries for such payments have not been recorded in the cash book, the balance as per cash book would remain unchanged. g) Discounted cheques/bills receivable dishonored subsequently: Sometimes, when the businessman deposits some outstation cheques and wants payment immediately, he may request the bank to credit his account immediately without waiting for the actual collection. The bank usually obliges him by discounting the cheque. This means the bank deducts certain amount towards interest (called discount) and credits the remaining amount to his account.Subsequently, if for some reason, such a cheque is dishonored, the bank would immediately debit the firms account. But, the firm would pass the entry for the dishonor only when it receives the intimation from the bank. Thus, the balance as per cash book would differ from the balance as per pass book till such entry has been passed. The same thing may happen when a discounted bill receivable is dishonored. h) Errors in the pass book: The bank may also commit errors while recording the transactions in customer’s accounts which may lead to disagreement of the two balances.Examples of such errors are: i) Omitting to record certain transactions in customers account. ii) Recording of a transaction on the wrong side of firms account. iii) Recording of a transaction in the wrong account where the firm has more than one account in the bank. iv) Recording of transactions which belong to some other customer in the firms account. Preparation of Bank Reconciliation Statement: After identifying the causes of difference, the reconciliation may be done in the following two ways: (a) Preparation of bank reconciliation statement without adjusting cash book balance. b) Preparation of bank reconciliation statement after adjusting cash book balance. * (a) Preparation of Bank Reconciliation Statement without adjusting Cash Book Balance: To prepare bank reconciliation statement, under this approach, the balance as per cash book or as per passbook is the starting item. The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals. It indicates the favourable balance as per cash book or favourable balance as per the passbook . On the other hand, the credit balance as per the cash book indicates bank overdraft . In other words, the excess amount withdrawn over the amount deposited in the bank. It is also known as unfavourable balance as per cash book or unfavourable balance as per passbook. We may have four different situations while preparing the bank reconciliation statement. These are: 1. When debit balance (favourable balance) as per cash book is given and the balance as per passbook is to be ascertained. 2. When credit balance (favourable balance) as per passbook is given and the balance as per cash book is to be ascertained. . When credit balance as per cash book (unfavourable balance/overdraft balance) is given and the balance as per passbook is to ascertained. 4. When debit balance as per passbook (unfavourable balance/overdraft balance) is given and the cash book balance as per is to ascertained. * Dealing with favourable balancesThis does not appear in the debit column of the pass book. iv) In the debit column of the pass book there are two unticked items on October 30:(1) payment of insurance premium by the bank as per standing instructions, Rs. 500, and (2) bank charges debited by the bank, Rs. 30. But there are no corresponding entries on the credit side of the cash book for these two items. Each of the above items appear only in one book i. e. , either in the cash book or in the pass book. As such, these are the items which are responsible for the difference in the balances of the two books as on October 31. 987. * (b) Preparation of bank reconciliation statement after adjusting cash book balance: When we look at the various items that normally cause the difference between the passbook balance and the cash book balance, we find a number of items, which appear only in the passbook. Why not first record such items in the cash book to work out the adjusted balance (also known as amended balance) of the cash book and then prepare the bank reconciliation statement. This shall reduce the number of items responsible for the difference and have the correct figure of balance at bank in the balance sheet.In fact, this is exactly what is done in practice whereby only those items which cause the difference on account of the time gap in recording appear in bank reconciliation statement. These are as (i) cheques issued but not yet presented, (ii) cheques deposited but not yet collected, and (iii) due to an error in the passbook. Step 1. Adjusting the Balance per Bank We will demonstrate the bank reconciliation process in several steps. The first step is to adjust the  balance on the bank statement  to the true, adjusted, or corrected balance.The items necessary for this step are listed in the following schedule: Step 1. |   Balance per  Bank Statement  on Aug. 31, 2010| |   Adjustments:| |   Ã‚  Ã‚  Ã‚  Ã‚  Add:  Deposits in transit| |   Ã‚  Ã‚  Ã‚  Ã‚  Deduct:  Outstanding checks| |   Ã‚  Ã‚  Ã‚  Ã‚  Add or Deduct:  Bank errors| |   Adjusted/Corrected Balance per Bank| Deposits in transit  are amounts already received and recorded by the  company, but are not yet recorded by the  bank. For example, a retail store deposits its cash receipts of August 31 into the banks night depository at 10:00 p. m. on August 31. The bank will process this deposit on the morning of September 1.As of August 31 (the bank statement date) this is a deposit in transit. Because deposits in transit are already included in the companys Cash account, there is no need to adjust the companys records. However, deposits in transit are not yet on the bank statement. Therefore, they need to be listed on the bank reconciliation as  an increase to the balance per bank  in order to report the true amount of cash. * A helpful rule of thumb is put it where it isnt. A deposit in transit is on the companys books, but it isnt on the bank statement.Put it where it isnt: as an  adjustment to the balance on the bank statement. Outstanding checks  are checks that have been written and recorded in the companys Cash account, but have  not  yet cleared the bank account. Checks written during the last few days of the month plus a few older checks are likely to be among the outstanding checks. Because all checks that have been written are immediately recorded in the companys Cash account, there is no need to adjust the companys records for the outstanding checks. However, the outstanding checks have not yet reached the bank and the bank statement.Therefore, outstanding checks are listed on the bank reconciliation as a  decrease in the balance per bank. * Recall the helpful tip put it where it isnt. An outstanding check is on the companys books, but it isnt on the bank statement. Put it where it isnt: as an adjustment to the balance on the bank statement. Bank errors  are mistakes made by the bank. Bank errors could include the bank recording an incorrect amount, entering an amount that does not belong on a companys bank statement, or omitting an amount from a companys bank statement. The company should notify the bank of its errors.

Mechanical Engineering at the University of Tulsa

Desmond Tutu essays

Desmond Tutu essays Archbishop Desmond Tutu was a well known and respected black church leader. He lived in South Africa. The government made it illegal for anyone to oppose it. So Archbishop Tutu called all the religious leaders in South Africa to his cathedral in Cape Town on February 29, 1988. There they linked arms and marched to government offices with the intent to deliver a letter to the Prime Minister. Met by armed riot police Archbishop Desmond Tutu was arrested and thrown in jail. Desmond Mpilo Tutu was born on October 7, 1931. He lived in Klerksdorp, a poor black township near Johannesburg. His home didnt have electricity, running water, or indoor toilets. This was a common place for black people to live in because black people were not allowed to live in the city unless they were servants. His father, Zachariah, was a respected school teacher but the Tutus still had to obey South Africas harsh unfair laws. His mother, Aletha, was a servant in a white home. Despite these conditions Desmonds home was a happy one. He was smart and did well in school which he rode to in a train where he played cards with other passengers, often cheating to get extra cash. When he was fourteen Desmond caught tuberculosis, almost died, and had to stay in the hospital for two years. While in the hospital Desmond met a white priest named Father Trevor Huddleston. Father Huddleston became very influential in Desmonds life. Father Huddleston brought many books for to the hospital for him to read. Desmond graduated from high school with honors and became one of the few blacks allowed to attend a university. Desmond Tutu wanted to be a doctor, but lacked the funds to pursue this goal. Instead, he studied to be a school teacher like his father. It was then that Tutu married his wife, Leah, who was a teacher in July 1955. Desmond became a teacher in a high school at Krugersdorp. He named his first son Trevor after father Huddleston. A ...

Making Sense of American Popular Songs Research Paper

Making Sense of American Popular Songs - Research Paper Example The American Popular Ballad of the Golden Era, 1924-1950. Princeton: Princeton University Press, 1995. In this work, much emphasis has been put on specific individuals that perform and work on popular music. In addition, the work has focused on a specific eras in which popular music were at its best in America. The book reveals what propelled people to start singing and performing popular music. These factors taken into consideration, the work is good enough to address the issues of American identity through popular music. Fuld, James J. The Book of World-Famous Music: Classical, Popular and Folk. Foreward by William Lichtenwanger. New York: Crown Publishers: 1966. This book looks at a wide range of music in America and their artists. The important information given about such music and their artists is imperative in the tracing of American identity through music. Among the cultures explored in this work are classic, popular and folk. As such, I found this book imperative in the writ ing of this paper. Grove Dictionary of American Music. Restricted database available online at through some schools and colleges. This source has a lot of information on the artists of popular music from the composers of songs to the performers. The information included is the bibliographic works for the artists. This makes the book significant in researching on the American identity through analysis of bibliographies of the composer and performers of pop music. Hamm, Charles. Yesterdays: Popular Song in America. New York and London: W.W. Norton & Company, 1983. Of significance about Charles’ work is that it concentrates on major works. Through the information found in this book, it is easy to establish the wave movement of Americans to the initiation of popular music. As... The paper tells that popular music in America took on a transformation in the second half of the 19th century to emphasize commercial expansion. This overlapped into the twentieth century and traces can still be seen in today’s popular music. As a result, the expansion of the music industry meant that more songs had to be composed, staged, produced and listened to in the entire country of the United States of America. In the first place, popular music was restricted to ethnic minorities or immigrant people to express their dissatisfaction in the manner in which the government was running social and economic matters in the country. However, commercialization expanded the market for such songs as well as thematic implications attached to the songs. On the other hand, Jewish artists incorporated segments from their tradition into the American music. This is well illustrated when Sophie Tucker performed her pop song â€Å"My Yiddishe Momme† which was staged in 12925. The so ng was performed in both Yiddish and English. Additionally, the Afro-American values resulted into a sequence of characteristic song style. This made most of the African American performers to be enthusiastic and confident with the themes central to pop culture. Nevertheless, there was a change in issues that were held true to popular music by 1950. These changes were in the contradictions over the period in which such songs were performed. In the first place, some songs remained stable from one period to another. The rise of other genres in music performed and composed in America like rock and roll, blues and soul music has an overriding impact on popular music.

Analzying group process Essay Example | Topics and Well Written Essays - 500 words

Analzying group process - Essay Example The group was trying to reach to a consensus which would be accepted by all the group members. At the beginning, all of them stated with their own desirousness. After a while, instead of thinking about one’s own choice, they shifted their focus to a particular solution which may serve or fulfill all members’ requirement. Ultimately the group was trying to come up with a particular solution as per the demand and requirement of the group. All the members did not perform at par. Few of them had excellent command over language and had guts to establish their view over other participants. From the beginning of the discussion, it has been noticed that Nelson and Kathrin had leadership quality. As both of them clearly stated their views and they also provided opportunities to Perez to give his verdict who did not properly participate because of shyness. Apart from these, three other participants were good as per the communication level but Megan and Allen always tried to suppress other to make their statement more prominent. This attitude brought in inconsistency with in the discussion. Regarding Davis, though he is not able to show the leadership attitude but he has followed all such techniques through which flow of the communication has not been affected. At the middle of the discussion, Megan added one topic which was a bit relevant with the topic. That is the education system of developing countries. But later on she began to emphasis on that topic only which made the discussion out of track and interrupted in the flow of the communication. Next, Kathrin takes the responsibility to get back to the actual track by avoiding that topic and gain the attention of the other members towards the actual topic. During the discussion Davis, Nelson and Kathrin addressed few of the past statistics related to the courses and the current education system which made the discussion more

Micronutrient deficiency Essay Example | Topics and Well Written Essays - 500 words

Micronutrient deficiency - Essay Example Still, much needs to be done, before a complete and conclusive success is achieved in this aspect of health care. Disorders Caused by Iodine Deficiency Iodine deficiency can impact human health much before the birth of a child. Iodine deficiency has the potential to jeopardize children’s mental health and in some instances could put to risk the very survival of a child (WHO: Online). Iodine deficiency leads to the impairment of the cognitive development in children (WHO: Online). Iodine deficiency has severe repercussions during pregnancy. It could lead to still births, abortions and may lead to congenital abnormalities like mental retardation that is grave and mostly irreversible, and cretinism (WHO: Online). Iodine deficiency also gives way to goiter (WHO: Online). These are some of the visible and easily discernable disorders caused by iodine deficiency. Of far greater significance is the less visible impact of iodine deficiency that most often gives way to mental impairmen t resulting in a compromise of the intellectual capacities in children and adults, in the day to day life (WHO: Online). Symptoms of Iodine Deficiency Some common symptoms of iodine deficiency include goiter or enlargement of the thyroid, weight gain, weakness, fatigue and depression (Mercer, 2006).