Part 1 is the preparation of a selection of consolidation elimination journals for year ending 30 June 2019, for any Australian companies comprising a parent and subsidiary, 100% owned by the parent, plus working papers of a professional standard.

• Part 2 is a justification of the accounting process adopted in Part 1.

Part 1 requirements:

Using this data, you will be required to prepare the consolidation/elimination journal entries necessary for preparation of financial statements for the any Australian companies for the year ending 30 June 2019. Details of workings (i.e. working papers) must be shown and the journals presented in a professional manner.

Part 2 requirements

The financial statements for the year ending 30 June 2019 for the economic entity have been prepared on the basis of your journals from Part 1. These statements have been presented to the Board of Directors, who have asked the following questions:

1. What is the advantage of making the consolidation adjustment entries prepared in Part 1?

2. Management have not undertaken any revaluation of non-current assets since the acquisition of the subsidiary, arguing revaluations are optional and will be undertaken at some time in the future when the total non-current assets increase in value. Do you agree with this approach? (Can u plz help me with this question because i have got many problems and difficulties with solving this problem)

Answer rating: 100% (QA)

Advantages of making consolidation adjustment entries The financial health of the company can be judged with one glance It portrays the entire asset a... View the full answer