- Critically examine and discuss financial statements for publication in accordance with the requirements of International Financial Reporting Standards and other relevant legislation. In doing so students will apply the main provisions of key International Financial Reporting Standards to transactions and items in the financial statements.
- Critically examine consolidated statement of financial position for a company with one subsidiary in accordance with the requirements of International Financial Reporting Standards.
Assignment Tasks
Task A (40 Marks)
- Follow the guidelines given below and complete the tasks mentioned below,
- Register and login to https://www.ifrs.org/ and review the Standards and the resources provided about the standards.
- You have already chosen a company listed in Muscat Securities Market www.msx.om and downloaded their Annual Financial statements as part of Assignment 1.
- Refer to the Audit notes from the set of documents downloaded from MSM and complete the tasks mentioned below,
- IAS 2 – Inventories: (20 marks)
- Critically describe IAS 2 from the Audit notes of the chosen company and reviewing the materials available in IFRS official website. (10 marks) (word range 200 – 250)
- Critically explain main disclosures relating to inventories by providing suitable examples from the chosen company. (10 marks) (word range 200 – 250)
- IFRS 16 – Leases: (20 marks)
- Critically describe IFRS 16 from the Audit notes of the chosen company and reviewing the materials available in IFRS official website. (10 marks) (word range 200 – 250)
- Critically explain main disclosures relating to Lease by providing suitable examples from the chosen company. (10 marks) (word range 200 – 250)
Task B (50 Marks)
- The statement of financial position of Grand Hypermarket and Golden Supermarket at 31 Dec
2021 are as follows:
Statement of Financial Position as on 31 Dec 2021
| Assets | Grand Hypermarket | Golden Supermarket | |
| Non-Current Assets | |||
| Property, plant and equipment | 500,000 | 100,000 | |
| Investment in Rocket LLC | 100,000 | ||
| Total Non-Current Assets | 600,000 | 100,000 | |
| Current Assets | 300,000 | 50,000 | |
| Total Assets | 900,000 | 150,000 | |
| Equity | |||
| Ordinary share capital | 400,000 | 80,000 | |
| Preference Share capital | 10,000 | ||
| Retained earnings | 150,000 | 30,000 | |
| Total Equity | |||
| Liabilities | |||
| Current liabilities | 350,000 | 30,000 | |
| Total Equity & Liabilities | 900,000 | 150,000 | |
- Grand Hypermarket acquired 75% of Equity and 50% of Preference shares on 31 Dec 2020 for OMR 100,000
- On 31 Dec 2020, the retained earnings of Golen was OMR 25,000.
- Golden has issued no shares since being acquired by Grand.
- Goodwill arising on consolidation has suffered an impairment loss of 50% since acquisition.
- Fair value of Golden’s non-current assets was OMR 8,000 more than their book value as on 31 Dec 2020.
- The above revaluation has not been reflected in the books of Golden
- Prepare a consolidated statement of financial position as at 31 Dec 2021.
Note:
- All calculations steps are to be provided within the assignment.
- All concepts discussed must be based on relevant academic literature and appropriately cited and referenced using APA style referencing.
Rules & Regulations:
- A minimum of FIVE academic literature sources are expected to be provided in this assignment.
- All resources should be cited using APA 7th edition referencing style.
- The final assignment must have a Title page, Table of Contents, References/ bibliography using APA 7th edition referencing style and page numbers.
Guidelines:
- Assignment must be computer typed.
- Font – Times New Roman
- Font – Style – Regular
- Font – Size – 12
- Heading should be with Font Size 14, Bold, Capital and Underline.
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