Week 2: Tutorial questions to be attempted before class

Question 1
Download/view the 2021-2022 Corporate Plan of the Australian Accounting Standard Board
(AASB) https://aasb.gov.au/media/wuqlur2e/aasb-auasb_corporateplan_2021-22.pdf
Required: Using Loftus et al (2020), Chapter 1 and the AASB Corporate Plan 2021-2022,
provide a one-page description of the role of AASB and the AASB standard setting process

Note: Your answer is therefore addressing Loftus et al (2020) Comprehensive Question 2 and the
following detail from pages 1-21 of the Corporate plan

o The role of AASB. Their role can be described through examining their purpose,
objectives, and description of what they do.
o Due process for setting Australian Accounting Standards (AASB’s)

Question 2
Download/view the Conceptual Framework for Financial Reporting 2021 (CF)
https://aasb.gov.au/admin/file/content105/c9/Conceptual_Framework_05-
19_COMPmar20_07-21.pdf
Required: Using Loftus et al (2020), Chapter 1 and the CF (2021), provide a one-page
description of the purpose of general purpose financial reports (GPFR), identifying the
objectives, users of GPFR, type of information, and the qualitative characteristics of the
information.

Note: Your answer is therefore addressing Loftus et al (2020) Comprehensive Question

Comprehensive Question 7 and 9

Question 3
Required: Go to Loftus et al (2020), Chapter 13 Application and Analysis Exercise 13.20,
and by viewing the appropriate sections of the Statement of Changes in Equity, provide
journal entries for the following:

 Closing profit for the year

 Issue of a bonus share from general reserve
 Transfers between the general reserve and retained earnings
 Dividends paid and dividends declared

1
Question 4

Mongoose Ltd had the following balances on 1 July 2021:

Share capital (120 000 ordinary shares @ $2) $240 000
General Reserve $45 000
Retained Earnings $90 000

The following transactions and events occurred during the year ending 30 June 2022:
2021
3 August Paid a $15 000 dividend that had been declared by the directors on 30 June
2021. Mongoose Ltd recognises dividends when declared by the directors.

30 December Paid an interim dividend of $22 000

2022
25 March Declared a 1-10 bonus share issue at $2 each, using retained earnings.

30 June Mongoose Ltd calculated a profit after tax of $114 000. A final dividend of
$20000 was declared and $15 000 was transferred to the general reserve
from retained earnings.

Required:
a) Prepare journal entries in relation to the above transactions and events.
b) Prepare the Statement of Changes in Equity for Mongoose Ltd for the year ended
30 June 2022.

Note: this is a question created by McCombie (2022)