Based on the information provided below, prepare appropriate consolidation journal entries for
possible account adjustment or elimination. (7 Mark)
Reference appropriate accounting standards to explain the approach which needs to be taken for the
adjusting journals. (3 Mark)
Parent paid $110 000 on 30 June for all the shares of Subsidiary, whose equity at that date is share
capital $72 000 and retained profits $28 000. However, the assets of Subsidiary are not all recorded
at their fair value. Assume that all companies adopt the revaluation model under AASB 116. The
discrepancies are:

Found something interesting ?

• On-time delivery guarantee
• PhD-level professional writers
• Free Plagiarism Report

• 100% money-back guarantee
• Absolute Privacy & Confidentiality
• High Quality custom-written papers

Related Model Questions

Feel free to peruse our college and university model questions. If any our our assignment tasks interests you, click to place your order. Every paper is written by our professional essay writers from scratch to avoid plagiarism. We guarantee highest quality of work besides delivering your paper on time.

Question SHORT ANSWER (10 possible points) Pleasegive a brief answer to each of the following questions. Eachquestion is worth a possible 2 points. 1.Explain the difference between internal and external users of acorporation?s financial information. Give two examples of internal users and two of external users. 2. Howdo financial accounting and management accounting differ? 3.What does relevance mean with regard to the use ofaccounting information? 4.Briefly explain the purpose of a Trial Balance. 5.Explain briefly the Revenue Recognition Principle. When should apublisher of magazines recognize revenue?

Read More »

BHP Australia. BHP, the Australian resource company, is evaluating an export sale of its coal with a prospective Indonesian distributor. The purchase would be for 1650 million Indonesian rupiah (Rp), which at the current spot exchange rate of Rp9450/A$, translates into nearly A$175000. Although not a big sale by company standards, company policy dictates that sales must be settled for at least a minimum gross margin, in this case, a cash settlement of A$168 000 on the sale. The current 90-day forward rate is Rp9950/A$. Although this rate appeared unattractive, BHP had to contact several major banks before even finding a forward quote on the rupiah will hold relatively steady, possibly falling to Rp 9400 over the coming 90 to 120 days. Analyse the prospective sale and make a hedging recommendation

Read More »

Grab your Discount!

25% Coupon Code: SAVE25
get 25% !!