财务会计代写 ACF301 – Financial Accounting I

ACF301 – Financial Accounting I

财务会计代写 The coursework forms 25% of the marks for the assessment of this module and comprises of an individual test based on the case…

Advance information

Please read this document carefully.

The coursework forms 25% of the marks for the assessment of this module and comprises of an individual test based on the case study ‘Windermere plc’ set out in this document. This 90 minute test takes place starting at 9am (UK time) Monday 6^th December 2021 (Week 9).

Coursework instructions 财务会计代写

• The test will take place online through Moodle.
• You can access the test at any time on Monday 6^thDecember 2021 from 9am onwards and the submission folder will remain open until 5pm (UK time).
• You are recommended to spend no more than 90 minutes completing this test. There is no timer on the test.
• The coursework test is based on the accounting issues which arise from the scenario set out in the advance information in this document, further information for which is provided at the time of this test.
• You may prepare for the test in study groups or on your own, however you must complete the test itself on your own.
• The test is open book.
• You should prepare your answer to this test using Microsoft Word and upload to Moodle.

Please note: you will not be required to produce a full set of consolidated financial statements.

Background 财务会计代写

Windermere plc

Windermere plc’s (Windermere) principal activity is the provision of a range of technology based solutions for customers across the world. Windermere focuses on the following main business areas:

1. The production and supply of electronic mobile devices such as mobile phones, tablets and laptop computers to individual consumers.
2. The provision of fully bespoke technology package for commercial customers. This includes the supply of electronic devices, cloud enabled software and other telecommunications support.

Windermere has grown quickly over the past few years and is keen to access fast growing markets globally.

Windermere has a year end of 30 September.

Your role 财务会计代写

You are a recent graduate of Lancaster University, employed as the Financial Accountant at Windermere. You have received the following e-mail from the Finance Director:

To: Financial Accountant

From: Finance Director

Subject: Consolidated accounts

Dear Financial Accountant

On 1 January 2021, Windermere bought 24m ordinary shares in Bowness Ltd (Bowness), a supplier of microchips used in the production of mobile phones. We believe that this investment will allow us to increase our production levels so that we can continue to sell in fast growing markets.

We used cash reserves and a bank loan to acquire these shares. As part of the loan agreement, the bank have placed a limit on the level of gearing allowed. I have provided some draft company financial statements for the year ended 30 September 2021 in Exhibit 1. 财务会计代写

This is the first time Windermere is producing consolidated financial statements. I have drafted an accounting policy note following guidance from our auditors. However, I am not sure what the impact will be on our financial statements. I am also unsure about some of the requirements of IFRS3, IFRS10 and IAS28 and would therefore like your help.

Windermere is also considering one further investment next year. I have provided some information about the investment in Bowness and the further potential investment in Exhibit 2.

Further information about these investments will be available on Monday 6^th December together with the tasks you must perform.

Accounting policy note

The Directors of Windermere have drafted the following accounting policy note in relation to consolidation:

Basis of consolidation 财务会计代写

The consolidated financial statements incorporate the financial statements of Windermere plc and subsidiaries controlled by Windermere plc (the “Group”). The results and assets and liabilities of associates and joint ventures are incorporated in the consolidated financial statements using the equity method of accounting.

Acquisitions of subsidiaries are accounted for using the acquisition method. When the Group completes a business combination, the fair values of the identifiable assets and liabilities acquired, including intangible assets, are recognised. The determination of the fair values of acquired assets and liabilities is based, to a considerable extent, on management’s judgement.

If the purchase consideration exceeds the fair value of the net assets acquired then the incremental amount paid is recognised as goodwill. If the purchase price consideration is lower than the fair value of the assets acquired then the difference is recorded as a gain in the statement of profit or loss.

The interest of the non-controlling shareholders in an acquisition may initially be measured either at fair value or at the non-controlling shareholders’ proportion of the net fair value of the identifiable assets acquired, liabilities and contingent liabilities assumed. The choice of measurement basis is made on an acquisition-by-acquisition basis.

Exhibit 1: Draft company financial statements for the year ended 30 September 2021 for Windermere plc

Draft company statement of financial position for the period ended 30 September 2021 财务会计代写

Notes

Note 1 – the Investment (at cost) relates to an investment in shares of Bowness Ltd. See Exhibit 2 for further information.

Note 2 – the directors of Windermere took out an additional loan as part of the acquisition of Bowness Ltd. A requirement of the loan is that gearing, defined as (debt / [debt + equity]), should not exceed 50%.

Exhibit 2: 财务会计代写

Investment in shares in Bowness Ltd

On 1 January 2021, Windermere acquired 24m ordinary shares of Bowness Ltd (Bowness), a supplier of microchips used in the production of mobile devices. At this date, Windermere paid £24m in cash. In addition, Windermere used some cash raised by means of a bank loan and an issue of shares to finance this investment.

Future possible investment in Ambleside Ltd

Windermere has been offered 45% of the ordinary share capital of Ambleside Ltd (Ambleside), a provider of telecommunications devices in Mauritania, a new market in which Windermere has very little presence but which shows indications of strong growth.