Prepare a 4,500 word (maximum) report addressing the 9 points above as 9 individual parts to the report.

Technical Consultancy Project.

This module will be assessed through a 4,500 word coursework integrated case study assignment (100% of
overall grade).
4,500 word coursework integrated case study assignment (100% of overall grade).

Background Information
You have just started work as a newly qualified accountant at Glampers Ltd, an unlisted company, which has become the parent company of the Glampers Group. The Glampers Group is a successful business offering boutique glamping products, predominately exclusive and unique tent designs, both in the UK and internationally.

Glampers design their tent products, but does not manufacture them. The COVID–19 pandemic highly disrupted their supply chain, and at a time when many people were looking to go on camping holidays rather than travel abroad, they found it extremely challenging to source their products to meet the increased demand. Therefore during 2021 the board decided on a new business policy of vertical integration with its key suppliers. On 30th June 2021 Glampers acquired 80% of the ordinary share capital of Burniston Ltd, a manufacturer which supplies custom tents to Glampers. The board also have another two potential acquisitions, Lunanovaa Ltd and Stoven Ltd, which they are currently considering.

(1) Please draft the consolidated financial statements for the year ended 31st December 2021. I have
included some relevant information in Exhibits 1 and 2 for you. The board will need to approve these and they like to understand the key consolidation adjustments so please explain the rationale behind the treatment of items in Exhibit 2.

(2) There are some outstanding issues that have arisen surrounding the recording of some transactions in the financial statements you’re drafting.

(3) The financial statements will be audited shortly – I’m sure the auditors will pick up on any issues we have in points (1) and (2), so please also list out what you expect the audit risks to be for both the group and single companies, and the key audit procedures you feel the auditors might use to test these areas, so we can get everything ready in advance.

(4) As you might be aware, we have another target company, Lunanovaa, we’re interested in. They are another one of our suppliers but have a lower quality product (and different final target market)
compared to Burniston. We’ve done some due diligence on them and have obtained the information
within Exhibit 4 to help come up with a reasonable valuation for purchasing 100% of the business. I
would like you to calculate, with workings, a suitable valuation figure for us to start negotiations with Lunanovaa’s shareholders. The company would be a great asset to us so we’re keen to acquire it, if we can, as soon as possible.

(5)Provide a brief explanation for each of the potential adjustments to be made to the profit figure given and state why any election(s) made have been possible. Please also make a short file note to explain why the company should not delay the purchase of the plant and machinery to January 2021.

(6) Burniston Ltd has always been a non–large company, with Augmented Profits of around £1.3m per year, and has historically paid its Corporation Tax Liability 9 months and 1 day after the Accounting Period end. Please can you include a couple of paragraphs in the report detailing when and why it will be required to pay tax by quarterly instalments for the first time, assuming that Augmented Profit levels will be the same going forward?

(8) If the acquisition of Stoven Ltd goes ahead, Stoven Ltd will at the same time acquire the trade and assets of Cannezi GmbH, a German manufacturer, and operate it as a branch. Please set out the
advantages of setting up as an overseas branch (rather than a subsidiary) and the loss relief options
for the whole group if this results in Stoven producing an overall trade loss from 1st January 2022.
There is no need to consider the disadvantages of a branch as we have decided that operating as an
overseas subsidiary is not a suitable option for now.

(9) Finally, I’ve been reading about the impact of sustainability reporting requirements and technology on accounting roles, and I am quite excited about these areas of change! I know you’re interested in these areas too so I would like you to do a bit of research for me on how you see the accounting function developing over the next 5 years, including how your, my and the auditor’s duties may change.

Required