Accounting Question

Please type the numbers of pages on the answers

Arab Open University
B326: Advanced Financial Accounting
TMA – Fall 2024-2025 VA-KSA
Cut-Off Date: As decided by the Deanship
About TMA:
The TMA covers the advanced accounting concepts and practices in the businesses. It is marked
out of 100 and is worth 15% of the overall assessment component. This TMA requires you to apply the
course concepts. The TMA is intended to:
➢ Assess students’ understanding of key learning points within chapter 1, 3, and 4.
➢ Increase the students’ knowledge about the reality of the advanced accounting issues.
➢ Develop students’ communication skills, such as memo writing, essay writing, analysis and
presentation of material.
➢ Develop the students’ ability to understand and analyze different issues that corporations might
face in real world.
➢ Develop basic ICT skills such as using the internet.
The TMA requires you to:
1- Review various study chapters in addition to supplementary materials.
2- Conduct a deep information search using the internet and your E-Library. You are expected
to use E-library sources to support your answers. A minimum of 3 sources is required.
3- It’s imperative that you write your answer using your own words. Plagiarism will be penalized
depending on its severity and according to AOU plagiarism policy.
4- You should use a Microsoft Office Word and Times New Roman Font of 12 points.
5- You should use Harvard referencing style for in-text citation and list of references.
Criteria for Grade Distribution:
Content
Criteria
Marks
Part A
Part B
Part C
Referencing
& E-library
50
20
30
(5)
Structure and
Presentation
of ideas
Total
marks
(5)
100
The TMA Questions:
PART A
Access Philips Company website and download: the annual report for 2023. Note: this file is
available at:
https://www.results.philips.com/publications/ar23/downloads/files/en/PhilipsFullAnnualReport
2023-English.pdf?v=20240730083420
From 2023 annual report, answer the following questions:
1. Determine the total amount of non-controlling interest in 2023 and state in which statement it
is disclosed and in which section.
2. State the amount of controlling interest share and non-controlling interest share in Philips
Company’s profit and non-controlling interest share in dividends for 2023
3. State in detail the amounts of goodwill and intangible assets as it appears in the annual report
for 2023
4. State Philips Company acquisitions during 2022 and 2023 and the aggregated goodwill
resulted from these acquisitions. How does each acquisition affect goodwill? Support your
answer by writing the page number in annual report.
5. State the amounts of impairment losses of goodwill in 2022 & 2023. In addition, state which
cash generating unit/division/segment suffered an impairment loss related to goodwill in 2022
& 2023.
6. How did Philips reflect the 2023 goodwill impairment in its financial statements?
7. Philips Company prepared its consolidated financial statements in accordance with the
International Financial Reporting Standards (“IFRS”), as mentioned in its annual report.
Assuming that it was not mentioned in the annual report that the company is following IFRS;
provide evidence from annual report (related to course subjects studied) that indicate that the
company is following IFRS and not following GAAP?
8.
Write your answer in the space provided in the following table:
Answer
Page(s) in
Annual report
1234567* Answers not provided in a tabular format will be disregarded
(50 marks)
PART B
Provide one example from the real world for successful mergers / acquisitions case in recent years
and state the specific reasons behind their success.
Notes:
▪ Do not provide general reasons behind success [as it will not be considered]
▪ Write your answer in the space provided in the following table:
Names of the companies
And
Detailed information about
this business combination
Reasons for success
Successful
Merger/Consolidation/
Acquisition
* Answers not provided in a tabular format will be disregarded.
** Examples dated before 2006 will not be considered.
(20 Marks)
PART C
On January 1, 2022, Panorama Company acquired 80% of Scann Corporation for $6,400,000.
At the time of the acquisition, the book value of Scann’s assets and liabilities was equal to the
fair value except for equipment that was undervalued $80,000 with a four-year remaining useful
life and inventories that were undervalued $20,000 and sold in 2022. Panorama separate net
income in 2022 and 2023 was $1,100,000 and $1,150,000, respectively. Scann separate net
income in 2022 and 2023 was $300,000 and $360,000, respectively. Dividend payments by
Scann in 2022 and 2023 were $60,000 and $60,000, respectively
Required: Using equity method,
1) Calculate Investment in Scann shown on Panorama’s ledger at December 31, 2022 and 2023.
2) Calculate Investment in Scann shown on the consolidated statements at December 31, 2022
and 2023.
3) Calculate consolidated net income for 2022 and 2023.
4) Calculate Noncontrolling interest balance on Panorama’s ledger at December 31, 2022 and
2023.
5) Calculate Noncontrolling interest balance on the consolidated statements at December 31, 2022
and 2023.
(Support your answer in all points with detailed calculations and explanation).
[END OF QUESTIONS]
GOOD LUCK
(30 Marks)