Financial Accounting and Company Reporting – Consolidated Statements and Adjusting Journal Entries Document Preview:

FinancialAccountingandCompanyReportingDraft Financial Statements: The financial information recovered from Beach Life Pty Ltd’s records and computer back up tapes are included in Appendix A (attached). Sun N Surf Pty Ltd have also provided a copy of their financial information for the year ended 31 December 2017. These statements are attached at Appendix B. Financial Statement Preparation [45 MARKS] You are to prepare the following draft financial statements for your client (Beach Life Pty Ltd): 1. Consolidated Statement of Financial Position as at 31 December 2017; 2. Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2017; 3. Consolidated Statement of Changes in Equity for the year ended 31 December 2017; and 4. Note disclosures supporting the balances included the consolidated financial statements prepared in (1) – (3) above. 5. You are also required to provide a copy of your work papers to the client. The work papers should include (i) a final trial balance for the consolidated group and the parent entity, (ii) a detailed reconciliation of opening and closing retained earnings, (iii) adjusting journal entries required to be processed (excel / word) and (iv) any related workings / calculations. These work papers should also include sufficient notes explaining workings / calculations and adjusting journal entries. The work papers should clearly identify the entity the adjustments relate to (i.e. Beach Life Limited, Surf N Sun Pty Ltd, Consolidation Entries). The draft consolidated financial statements should portray the Group’s financial results and the Parent entity’s financial results for the year ended 31 December 2017. Note: Taxation entries are only required to the extent the adjusting journal entries affect taxation balances recorded in the financial statements. A detailed tax calculation is not required. (Tax Rate…