Consolidation and Accounting of Foreign Subsidiaries in OZ Minerals Limited

Assignment
Company:
OZ Minerals Limited
Consolidation: It refers to the collection of the data of different companies under
the same group. There are some technical aspects to be considered some of them, are
as under:
(1)
Intra-group transactions and balances:
 These are the transaction which are carried out between the companies of a group.
 Each company book such transaction as per their accounting policies.
 During consolidation, there are some factors which ensures the difference between
the intra-group transactions.

Assignment
Company:
OZ Minerals Limited
Factors causes
difference in intra-
group transactions
Difference in
reporting
periods
Sales considered
as fixed assets
Profit margin on
sales etc.
 At the time of consolidation, all these transactions among the companies become
reciprocal to each other.
 At the time of consolidation, all these transactions among the companies become
reciprocal to each other.
In present case following is position of intra-group transaction and balances:
 All the intra-group balances are null.
 Unrealized gain or loss has been removed from the consolidated financial
statements.