Consolidation and Consolidated Financial Statements of Rad Ltd Assignment

Assignment Task

1. If Tax rate=30%, Required: 1- Prepare the followings

a. Acquisition analysis at acquisition date.

b. Consolidation worksheet entries at acquisition date.

c. Prepare worksheet adjusting journal entries for the consolidation on 30 June 2023, considering 20% of inventory were sold by 30 June 2023 and no other changes in Rad's equity sir date.

2. If Bella Ltd purchased just 94% of the issued shares of Rad Ltd for $6420000 on 1 July 2023, partial goodwill method is under use and the NCI at acquisition date is measured proportionate share of the identifiable assets and liabilities in Rad Ltd.

a. Prepare the acquisition analysis at acquisition date.

b. Consolidation worksheet entries at acquisition date.

3. Write at least one paragraph for each of the followings, with proper referencing:

a. What are definitions of consolidation and consolidated financial statements according to accounting standards?

b. Explain in details what is meant by consolidated worksheet.

c. Compare worksheet formats for the above cases in requirement1 (wholly owned entities) and requirement2 (NCI).

d. Why and by which party should prepare consolidated financial statements.

e. How to prepare consolidated financial statements.

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