FNSACC514: Discuss The Requirements Of Both Of The Corporations Act: Prepare Financial Reports For Corporate Entities Assignment, UM, Australia

Task 1

Read each part carefully

a) Discuss the requirements of both s. 292 (1) of the Corporations Act 2001 and those required by accounting standards.

b) Discuss ethical considerations regarding confidentiality and conflict of interest for directors and senior financial management of corporate companies in relation to the preparation of financial statements.

c) Identify and explain three current business taxation requirements for preparing corporate accounting reports.

d) Identify three procedures you would perform on a set of financial statements to ensure they are accurate, error-free and complete in terms of all reporting and disclosure requirements prior to publishing and sending the accounts to shareholders.

Task 2

Sophisticated Shutters Ltd was incorporated on 1 August 2017. On 10 August 2017, a prospectus was issued inviting the public to subscribe for 1,500,000 ordinary shares at an issue price of $3.50 each.

On application for these shares, the applicant was to pay $3.00 per share. According to the prospectus, any excess application money was to be refunded in full. The second installment of $0.50 was payable on 1 March 2018.

By the prospectus closing date of 1 September 2017, 1,600,000 applications for ordinary shares had been received. Only application money was sent in with all applications. On 10 October 2017, the company’s directors decided that only the 1,500,000 shares would be allotted on a pro-rata basis and excess application money was refunded. No additional shares were issued.

By 1 March 2018 all the second installment payments had been made, with the exception of one holder of 5,000 ordinary shares