The assignment involves two parts:

• Part 1 is the preparation of a selection of consolidation elimination journals for year ending 30 June 2019, for an economic entity 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:

You will be required to prepare the consolidation/elimination journal entries necessary for preparation of financial statements of the Woolworths 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 (1 000 words maximum):

The financial statements for the year ending 30 June 2019 for the Woolworths 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?

(400 words maximum)

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? You can use Woolworths as parent and BWS or Big W as subsidiary. I have got a lot of problem with this question so, can any of u guys help me...will be highly appreciated..

(600 words maximum)