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Accounting - Business Combinations and Consolidation - Wesfarmers Annual Report Writing Assessment Answer
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Internal Code: 1AGCFA
Accounting Assessment Answer
Assignment Task:Business Combinations and Consolidation, Wesfarmers Annual Report -
(i) Please refer to the allocated ASX company’s (Wesfarmers) annual report and answer the following: (a) Identify the key subsidiaries of the company. What is the amount of total non-controlling interests at 30 June 2018? (b) What is the amount of total comprehensive income for the year ended 30 June 2018? Describe the components of this company’s comprehensive income, and show the amount of this comprehensive income that is attributable to (i) shareholders of the parent entity; and (ii) non-controlling interest (c) What is the amount of goodwill at 30 June 2018? (d) Read this company’s “related party disclosure” and identify the intra-group transactions. (e) Explain whether your Company has complied with the requirements of paragraphs 54 (q) and 54 (r) of AASB 101, and paragraph 22 of AASB 10 Consolidated Financial Statements? (f) Read this company’s ‘Principles of consolidation’ accounting policy carefully and explain how it complies with the requirements of AASB 10. (ii) Provide consolidation journal entries based on information as follows Parent Ltd (Parent) owns 70% of the issued shares of Subsidiary Ltd (Subsidiary). During the period ended 30 June 2016, the following transactions took place. (a) In August 2015, Parent sold to external entities $2,000 worth of inventories that had been sold to it by Subsidiary in April 2015 at a profit before tax to Subsidiary of $400. (b) In March 2016, Parent sold $10,000 worth of inventories to Subsidiary, recording a profit before tax of $1,000. At 30 June 2016, 20% of these inventories remained unsold by Subsidiary. (c) In April 2016, Subsidiary sold $12,000 worth of inventories to Parent Ltd at a mark-up of 20%. At 30 June 2016, $1,200 of these inventories remained unsold by Parent Ltd. (d) At 1 July 2014, Parent purchased equipment from Subsidiary for $100,000. At that date, this equipment had a carrying amount of $80,000 in the accounts of the Subsidiary. (e) At 30 June 2016, Parent recorded depreciation of $10,000 in relation to equipment sold to it by Subsidiary on 1 July 2014. Parent uses a 10% p.a. straight-line depreciation method for the plant. Required: Assuming a company tax rate of 30%, prepare consolidation journal entries to eliminate the effect of intra-group transactions as at 30 June 2016, considering the effect on non-controlling interest (NCI) where applicable.This Accounting Assessment has been solved by our Accounting experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.