Conceptual Framework for Financial Reporting – Accounting and Finance Assignment Help

Task

Question 1 :

Required: Using Loftus et al (2020), Chapter 1 and the AASB Corporate Plan 2021-2022, provide a one-page description of the role of AASB and the AASB standard setting process.

• The role of AASB. Their role can be described through examining their purpose, objectives, and description of what they do.
• Due process for setting Australian Accounting Standards (AASB’s)

Question 2:

Required: Using Loftus et al (2020), Chapter 1 and the CF (2021), provide a one-page description of the purpose of general purpose financial reports (GPFR),identifying the objectives, users of GPFR, type of information, and the qualitative characteristics of the information.

Question 3:
Required: Go to Loftus et al (2020), Chapter 13 Application and Analysis Exercise 13.20, and by viewing the appropriate sections of the Statement of Changes in Equity, provide journal entries for the following:

Closing profit for the year :

• Issue of a bonus share from general reserve.
• Transfers between the general reserve and retained earnings.
• Dividends paid and dividends declared.\

Question 4:

Mongoose Ltd had the following balances on 1 July 2021:
Share capital (120 000 ordinary shares @ $2)    $240 000
General Reserve    $45 000
Retained Earnings    $90 000

The following transactions and events occurred during the year ending 30 June 2022:

2021

3 August : Paid a $15 000 dividend that had been declared by the directors on 30 June 2021. Mongoose Ltd recognises dividends when declared by the directors.

30 December : Paid an interim dividend of $22 000

2022

25 March : Declared a 1-10 bonus share issue at $2 each, using retained earnings.

30 June    Mongoose Ltd calculated a profit after tax of $114 000. A final dividend of $20000 was declared and $15 000 was transferred to the general reserve from retained earnings.

Required:

a) Prepare journal entries in relation to the above transactions and events.
b) Prepare the Statement of Changes in Equity for Mongoose Ltd for the year ended 30 June 2022.