_{Financial Accounting}

_{Answer 1}

_{There is a right to the investors to control the investee when it is exposed or possess rights for generating variable returns through the involvement of the investee and affect those returns by exerting power over the investee. As per the AASB 10, it is recommended to the finance director of MC is that the control model includes the three elements such as the power of an investor, power over the investee and return to the investor etc.}

_{in case of power over the investee, the investors should have voting rights in the equity, preferences share etc. It is finding that those fulfilling their responsibilities, governing bodies then have the right to become the members of a particular company (Walton, 2016). Return to the investor is another criterion that has an ability to use the power in order to influences the return of the investors. Besides that, the link between power and return helps the company to make a growth in future.}

_{Answer 2}

_{Goodwill = (Consideration paid + Fair value of non controlling interest) – (Assets acquired – Liabilities assumed)}

_{(900000 + 720000) – (530000 – 300000)}

_{= 1390000}

_{NCI equity = Beginning NCI equity Fair Value + NCI’s interest in subsidiary income – NCI’s share of dividends}

_{700000 + 60000 – 40000}

_{= 720000}

_{Answer 3}

_{Answer 4}

428571. _{According to the provided information, it is found that Wiley & Sons Australasia Ltd is going to acquire to 70% share of Wiley Plus. As concerning concern for this, the remaining per cent will be known as the non-controlling interest and d fair value of the net controlling interest will be $428571. As concerning the fair value, the amount of goodwill pursuant will be recorded by $728571 (1000000 + 428571-700000).}
428572. _{As concerning the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets, the goodwill pursuant was recorded by $321000 (1000000+70000*0.3 – 700000).}
428573. _{In the business environment, there are some implications of allowing the group to concern the goodwill. In this, the company should effective identify the assets acquired, liabilities assumed and other non-controlling interests in the acquisition.}

_{Answer 5}

 _References

_{Christensen, H.B., Lee, E., Walker, M. and Zeng, C. (2015) Incentives or standards: What determines accounting quality changes around IFRS adoption?. European Accounting Review, 24(1), pp.31-61.}   

_{Mora, A. and Walker, M. (2015) The implications of research on accounting conservatism for accounting standard-setting. Accounting and Business Research, 45(5), pp.620-650.}

_{Walton, P. (2016) Aiming for Global Accounting Standards–The International Accounting Standards Board 2001–2011.}

_{Wang, C. (2014) Accounting standards harmonization and financial statement comparability: Evidence from transnational information transfer. Journal of Accounting Research, 52(4), pp.955-992.}

_{Young, J.J. (2014) Separating the Political and Technical: Accounting Standard‐Setting and Purification. Contemporary Accounting Research, 31(3), pp.713-747.}