Consolidated Financial Statements

Consolidated Financial
Statements

Table of Contents
a) Acquisition analysis and adjustment/elimination journal entries for consolidation at
acquisition, 30 June 2010.............................................................................................................3
b)i) adjustment/elimination journal entries for consolidated statements at 30 June 2016...........4
ii) Consolidation worksheet.........................................................................................................4
Iii) Consolidated financial statements and statements of changes in equity of Good Ltd and its
controlled subsidiary for year ended 30 June 2016.....................................................................6
PART 2............................................................................................................................................8
Effect on revaluation in goodwill on the financial statements.....................................................8
REFERENCES................................................................................................................................9
2

THEORY ASPECT
The integrated reporting framework used by an entity in order to enhance their reporting
system to restrict the defaulters to enter into the system in order to break the confidentiality. The
existing reporting process needs to be strengthen by adopting different methods in improving the
existing working conditions of an entity. The primary objective of this framework is to reduces
the hidden errors lies in the internal business system. The replica of transactions are also reduces
by applying the methods of integrated reporting framework. The current principles are used by
an entity which will help in enhancing the existing quality of information by supplying truth and
fair information to other end.
The financial statements prepared by an entity in order to record their overall business
transactions in a particular year. The recorded transactions are further reflected the financial
performance of an entity in which efficiency entity will get improved by adopting each and every
principles. The electronic mode has chosen by an entity in order to convey their financial
information to all kinds of stakeholder. The Increasing impact of external business environment
imposes external pressure on the business which will be helpful for an entity in order to affect
the internal business performance.
Define- The control based approach is emphasises on imposing and placing controls in the
current system in order to control the performance of an entity in relation to the external threats.
On the other hand, inclusive approach is stresses on combing with the current system who
emphasises on all the existing transactions by reducing their weaknesses by enhancing their
ability.
Mode- The focus of the integrated reporting framework is on the external business environment
in which external market threats are taken into consideration. The market threats are observed
properly by an entity owner which can be further converted into opportunities for the business.
The higher efficiency of an entity will transform the negative reactions of the environment into
new market opportunities. The control approach focuses on protecting the interest of the business
from the external default by improving the current financial statements. On the contrary, to it the
inclusive approach emphasises on strengthening the business performance by enhancing the
internal performance of the business in relation to the external market.
3

Compliance- The control based approach stresses on complying with the rules and regulations
framed by external entity to enhance the existing business performance of the current financial
statements. The external rules will in turn improves the working conditions of an entity by
following different committees such as stock exchanges and other IFRS requirements to be
followed by an entity. The inclusive approach stresses on rectifying the existing weaknesses lies
in the current system of the business in order to deal with the external market complexities. The
stakeholder's needs and the expectations are taken into considerations. The integrity of the
business needs to be reflected by the action taken by an entity in order to please their clients in
order to maintain long term relationship with them.
CONSOLIDATION APECTS PART 1
a) Acquisition analysis and adjustment/elimination journal entries for consolidation at
acquisition, 30 June 2010
Acquisition analysis at 30 June 2010
Net fair value of assets and liabilities Man Ltd Values in $
Share capital 300000
Retained earnings 200000
Business Combination valuation reserve 100000
Inventory(33600*1-30%) 23520
Plant (40000(1-30%) 28000
Land (40000*1-30%) 28000
Plant (140000*1-30%) 98000
-Goodwill (4000*1-30%) 2800
Total assets 774720
Consideration transferred 600000
Goodwill 174720
Goodwill recorded 2800
4