It's not unusual for one company to buy another company in order to obtain technology that the acquired company has developed or is in the process of developing.

Required: Explain the accounting treatment of purchased technology.

At least 350 words

Comfort Meals (CM) is a not-for-profit organisation that prepares and distributes meals for homeless people in Adelaide. David Cunningham, who is a member of CPA Australia, is the Chief Financial Officer for CM. On the 28^th July, 2019, CM’s Chief Executive Officer (CEO) successfully negotiated a loan for $1.8 million dollars (4% per annum interest) to fund the construction of new kitchen facilities. The new facilities will be completed and ready for use in November 2020.

David is now preparing the CM annual financial statements for the year ended 30^th June, 2020. The relevant accounting standards require that the interest costs associated with such a loan should be capitalised (that is, treated as an asset, part of the cost of the new facilities). The CEO has just spoken to David regarding the accounting treatment for the loan and its interest costs. In particular, he has asked David to ensure that the interest costs on the loan are all expensed in the current accounting period. The reason for the request is that CM is about to approach the government for a new round of operating grant funding. This funding is essential to ensure that CM can continue its operations in the coming year because CM is dependent on government financial support for its day-to-day activities. “Our financial operating surplus must be as low as possible for this year”, he states. The CEO goes on to say, “Preferably we should be showing a loss so that we can maximise the amount of grant funding we receive from the government. Remember, without our services, the homeless of Adelaide would be left to starve. It’s all up to you to show the right figures!”

Required:

Using the DECIDE model, explain how David should respond to this situation. You should ensure that your analysis of the case is supported by reference to the Fundamental Ethical Principles and the values of the fundamental principles of the accounting profession as specified in APES 110. Three (3) courses of action should be identified and evaluated

Prepare and record a 8-10 minute Kaltura presentation with a Power Point that summarizes your reflection on the learning experience within the MBA degree program. This is not reflection of this course, but rather an reflection of the comprehensive MBA program and your assessment of your achievement.

It should reflect your candid assessment of the level of achievement of degree’s overall Learning Outcomes listed below:

1. Construct a situational analysis in order to develop business strategies and tactics.
2. Integrate legal, ethical, and socially responsible constructs to make sound business decisions.
3. Apply interpersonal oral communication with diverse audiences.
4. Appraise collaborative leadership strategies to manage, influence, and lead in a global environment.
5. Apply appropriate quantitative and qualitative inquiry methods to solve business problems.

For each of the five learning outcomes, use your graduate-level critical/evaluative thinking skills and the four questions below to guide your reflection about your personal level of achievement

a) In which of these MBA degree program outcomes have achieved significant proficiency? Provide (cite) examples from the work you have done throughout the course of your degree to support your response.

b) Which Learning Outcome(s) did you not achieve proficiency? Where or in what courses or experiences within the course of the MBA degree program did these challenges manifest the most? Explain fully and provide examples.

c) Reflecting on your MBA degree experience, what would you have done differently to overcome the challenges reflected in the learning outcomes in which you judge yourself to have less proficiency?

Lastly, as you conclude the paper, state your overall assessment of the program; its content, delivery and relevance to your professional/career goals.   Based on this encompassing assessment, would you recommend the program to an individual considering it?

This assignment is graded on the basis of how well you support the evaluative statements and conclusions you make. It is NOT scored on the favorability of the comments – so, your candid, honest reflection on your growth in personal knowledge, skills and abilities as well as relevance of the learning to YOU is the true value of completing this assignment.

Exercise 22.4 Sustainability – developing countries

You are the accountant of a company that is considering expanding its operations to a developing country. The CEO has asked for a report outlining what issues the company should consider from a sustainability perspective when making this decision. Outline some of the key issues to be included in the report.

Lisa’s Darwin Home

Lisa sold her home in Darwin (contract date September 2019, settlement December 2019), receiving $1,220,000 at settlement. This is after legal fees ($12,000), advertising ($2,000) and real estate commissions ($25,000) were deducted. Records indicate that Lisa purchased the property in 2002 (contract date January, settlement March) for $653,000. Legal fees, commissions and advertising of $8,000 were also incurred. Lisa moved in within 6 months, selling her former residence during that time. Over the ownership period, Lisa rented the property for three years beginning December 2010, with $65,000 of $120,000 in non-capital costs claimed against rental income. The property was valued at $890,000 at the time it began being rented. Sculpture Lisa gave a sculpture, valued at $18,900, to her friend in June 2020.

The sculpture was purchased for $480 in December 2000 and repaired in March 2016 for $1,250.

Vase

When Lisa was playing with her cat in September 2019, the cat accidentally knocked over and broke a vase given to her by her grandmother in September 2018 (worth $6,100 at that time). The vase dated back to the Australian gold rush (circa 1850's) and, after undertaking some research, she discovered it was currently worth approximately $27,000. Lisa did not have insurance for the item. Cryptocurrency Lisa converted cryptocurrency into $27,200 Australian dollars in October 2019. To complete the transaction, she incurred $950 in transaction fees. Therefore, Lisa received $26,250 in cash. Lisa had acquired the cryptocurrency in September 2018 for $9,200 Australian dollars.

Shares Lisa sold

shares she held in a construction company in March 2020 for $182,000. She had purchased the shares for $37,200 in December 1986. Lisa has indicated that she has carried forward losses from prior years of $180,000 relating to a prior disposal of shares and land. We will have a meeting first thing Monday morning, so please complete your analysis by the end of Friday so I can review her circumstances over the weekend.

Required: You are required to calculate Lisa’s Net Capital Gain (loss) for the year ending 30 June 2020 based on the above information provided. In doing so, you must present an accurate and complete analysis.

Qa) Determine the taxable capital gain (loss) on the sale of the home. Briefly justify your answer/show all workings.

Qb) Determine the taxable capital gain (loss) on the sale of the Sculpture. Briefly justify your answer/show all workings

Qc) Determine the taxable capital gain (loss) on the sale of the Vase. Briefly justify your answer/show all workings

Qd) Determine the taxable capital gain (loss) on the sale of the Cryptocurrency. Briefly justify your answer/show all workings.

Qe) Determine the capital gain on the sale of the Shares. Briefly justify your answer/show all workings A.6 Determine the Net Capital Gain and/or Loss for Lisa. Briefly justify your answer/show all workings.

home / study / business / accounting / accounting questions and answers / on january 1, 2012, aspen company acquired 80 percent of birch company’s outstanding voting ... Question: On January 1, 2012, Aspen Company acquired 80 percent of Birch Company’s outstanding voting stock... On January 1, 2012, Aspen Company acquired 80 percent of Birch Company’s outstanding voting stock for $364,000. Birch reported a $320,000 book value and the fair value of the noncontrolling interest was $91,000 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $108,000 when Cedar had a $108,000 book value and the 20 percent noncontrolling interest was valued at $27,000. In each acquisition, the subsidiary’s excess acquisition-date fair over book value was assigned to a trade name with a 30-year life. These companies report the following financial information. Investment income figures are not included. 2012 2013 2014 Sales: Aspen Company $ 485,000 $ 767,500 $ 892,500 Birch Company 211,500 386,000 622,300 Cedar Company Not available 263,700 240,000 Expenses: Aspen Company $ 332,500 $ 525,000 $ 635,000 Birch Company 167,000 315,000 550,000 Cedar Company Not available 244,000 210,000 Dividends declared: Aspen Company $ 10,000 $ 45,000 $ 55,000 Birch Company 8,000 18,000 18,000 Cedar Company Not available 2,000 6,000 Assume that each of the following questions is independent: . Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following unrealized gross profits at the end of each year: Date Amount 12/31/12 $13,500 12/31/13 16,200 12/31/14 30,400 What is the realized income of Birch in 2013 and 2014, respectively?

You are the audit manager of Overseas Explorer Ltd (OEL), which acquired the small proprietary company Local Pty Ltd (Local) on 30 June 2018. The price of the acquisition was agreed at $5 million, on the condition that OEL is satisfied with the financial records of Local. As Local is a small proprietary company, it has not prepared statutory financial reports or undergone an audit since its incorporation in 2016. However, Local has agreed to allow your firm, which is the auditor of OEL, to access its books and records. The CEO of OEL, Wendy Champion, has requested that your firm provide assurance on the following three items:

 The management accounts for the year ended 30 June 2017

 All transactions occurring from the date negotiations commenced until the settlement date, to ensure that all transactions were within the normal course of operations

 The financial report prepared at the acquisition date of 30 June 2018

In order to clarify your responsibilities, you requested that OEL indicate the level of assurance that they require for each item. Wendy replied that the financial report as at acquisition date is very important, as are the transactions since negotiations commenced, but that she is willing to have less work done on the previous year’s management accounts.

Required: Indicate the type of engagement that will most likely be undertaken for each of the three tasks and the level of assurance to be provided. Explain your selections. (10 marks, maximum 250 words)

Define founder effects and population bottlenecks. How are these processes different? How are they similar? How are these processes related to genetic drift and how do they impact genetic variation within populations?