Assignment:
Theoretically, the notion of the group, and the resulting accounting, may be centred on one of two polarised ideas: the parent entity concept or the entity concept.
Currently, there are proposals from the IASB which, if implemented, will change the basis of preparing consolidated statements. In the UK, the ASB has recently consulted on the plans and is considering feedback.
TASKS:
Question 1. Define and explain the two concepts and, with the aid of your own numerical examples, compare and contrast the content of the financial statements resulting from their application.
Question 2. Consider whether the concepts are consistent with the ASB’s Statement of Principles for Financial Reporting and the IASB’s Framework for the Preparation and Presentation of Financial Statements.
Question 3. Examine and assess the IASB’s proposals for change and evaluate the possible impact of the proposals on current UK group accounting.
The limit of 2000 words [approximately 8 sides of A4 paper] will be strictly enforced. You must present your answer as a word-processed document.