Your task is to analyse client information using the information and questions raised by the CEO, and present the findings in a Statement of Advice with a covering Business Letter.For each issue, you are expected to:1) Identify the facts and accounting topic2) Apply the relevant legislation, accounting standard and/or process3) Make a recommendation and/or summary of the correct accounting treatment

K Re: Accounting Issues: Year Ending 30 June 2021 From: Hugh Jackson Sent: 15 November 2021 To: Diana Keaton Dear Diana Thank you for your time this morning. As discussed, I would like you to provide advice on the following issues which came up in the most recent board meeting. We have recently restructured our senior management team, including a number of board members. With the change in management, we thought that everyone would benet from a clear explanation of all the issues from the outset of our governance. Most of the board members, including myself, are not qualied accountants. Our company is quite diverse, with a number of subsidiaries that have been acquired over the years. For the benet of all board members to understand, we would like a clear explanation of how the companies in our Group become consolidated into one set of nancial statements. Even though we have a CFO who prepares all this information for our Group, we would like an independent explanation of the process, including the rules or regulations that should be applied. Our companies also trade between each other in our Group. We are concerned that these dealings are not allowed. Would you please explain how to deal with such transactions? The Board would also like to know how to account for a number of companies where we own 20% of their shares. We can't see valuations for these shares in the accounts, and therefore we were concerned that they have been missed in our reports. Would you please explain where this information should be disclosed and how these investments are valued? Finally, the Board is quite concerned about the low value of goodwill in the Group accounts. Most of the companies in our Group have been trading for a long time. Other public companies have large Goodwill assets disclosed in their nancial statements. The Board would like to know vmy our assets do not include a signicant amount for Goodwill to represent our business value. Could you please advise the Board how to incorporate an increased amount of Goodwill into our nancial statements for the upcoming Annual Reports? How can we maintain the value of the Goodwill in future? Would you mind responding by letter (not email) as I would like to present your views to our board? I look toward to hearing from you shortly