Performance Of The Subsidiary Companies Report 2022

Issue 1:
Wesfarmers prepare their consolidated annual report which includes the information
and performance of the subsidiary companies, strategic investments and joint
ventures. This provides the stakeholders to have a clear look at the complete
picture of the overall company at one report. The actual performance may not be
stated if the report would contain only the performance of the Wesfarmers (parent)
company. Hence, it is necessary to include all the financial conditions from the
subsidiary companies as well. This fact also goes with the subsidiary company’s
alone report also as their performance for that specific year will show only losses
and so the performance is consolidated with the parent entity. Wesfarmers believe
that as they have more than 50% share in their subsidiary company, it is important
to include their performance in the consolidated annual report which will keep the
subsidiary companies accountable for making losses in that specific year.
Issue 2:
The policies of the company is stated in the
corporate governance report and the audit committee has clearly displayed their
objectives. The sustainability and the solvency targets for that specific year has
been met by the entity which is reflected in the corporate governance report and in
the annual report as well. The audit committee has ensured that the integrity of the
financial statement and the reporting is reviewed properly. The committee also
oversees the performance of internal audit. Wesfarmers auditors prepares the
annual report after a full analysis because the consolidated annual report contains
the financial statements from different subsidiary companies. The audit committees
also ensures that whether the company policy is maintained by the subsidiary
company’s financial statements or not.
Issue 3:
Yes, there is goodwill present in the consolidated
annual report. Wesfarmers have created a notes to accounts for the Goodwill and
intangible assets where all the information of goodwill from the acquired companies
are displayed in detail. The allocation has been done carefully by the auditors.