Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the me

Purpose This assignment aims to develop students’ understanding of corporate reporting, disclosure, reporting entity concept and the implication of being classified as a reporting entity. The students will also analyse the disclosure on business combination made by two selected companies. Assessment Task Part A-Accounting Standard Setting, Regulation and Disclosure Accounting Standard Setting (i) Do your own research and critically explain how the Australian Accounting Standards Board take part in the global accounting standard setting process (i.e. in setting IFRS). Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the member countries of IASB? Reporting Entity (ii) Do your own research and critically examine the concepts of small proprietary company, large proprietary company and reporting entity. What are the implications of being classified as either one of these three types of companies in terms of compliance and reporting requirements? Part B Business Combination / Acquisition analysis Collect the latest annual reports of two ASX listed companies. Each of the two companies must have reported Business Combination as per AASB 3 (Many of the ASX 300 Companies report business combinations). Carefully read the note disclosure relating to the Business Combination AASB 3. Answer the following: (i) How many business combinations did the company report? (ii) What was the fair value of consideration paid? (iii) What are the components of acquisition costs, e.g. cash consideration and noncash consideration? (iv) What was the fair value of net identifiable assets acquired? (v) Recognised value of each class of assets, liabilities and contingent liabilities (vi) Carrying value of each class of assets, liabilities and contingent liabilities (vii) How much goodwill or gain on bargain purchase has been recorded? (viii) Factors that contributed to the recognition of goodwill or gain on bargain purchase (if disclosed) (ix) What was the amount of goodwill as percentage of total consideration paid? (x) What was the amount identifiable intangible assets as a percentage of total consideration paid? (xi) Write a comparative analysis on the two companies’ disclosure on business combination.