Company Accounting Report: Technical Aspects of Consolidation Analysis

This report, presented as a memorandum to a board of directors, addresses technical aspects of company accounting, specifically focusing on the consolidation of financial statements. It examines issues related to Capilano Honey, including its operations, subsidiaries, and joint ventures. The report delves into key areas such as issued capital, corporate governance disclosures, minority interests, goodwill, functional currency, and disclosures for directors and key management personnel. It analyzes the company's financial reporting practices, highlighting the importance of consolidation in presenting a comprehensive view of the parent company and its subsidiaries. The report also references the company's annual reports and corporate governance documents to support its analysis of the issues and provides insights into the company's accounting policies and practices.

Running head: COMPANY ACCOUNTING
Company Accounting
Name of the Student
Name of the University
Author’s Note

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Memorandum
Part A
To: Board of Directors
From: Financial Adviser
Date: 29 August 2017
Re: Technical aspects of consolidation
Sir,
The memo aims to discuss some of the important aspects from the financial statements of
Capilano and addressing of the same to the board of directors clearly stating about some of the
technical issues in the consolidation process. The memorandum to the board of directors has
included the specific intricacies of the consolidation to the board and the possible avoidance of
the general terms. It has to be further noted the important aspects of the report has been stated
from the annual report of the company.
Issue 1
The main operation of Capilano Honey has been seen in terms of sourcing of network of
over 600 loyal beeking families across Australian. The supplies of the company have been seen
with 30 years. The operations of the company include the preservatives from the refined range of
products. The composition of the different range of the products includes Capilano Classic
Honey, Capilano Beeotic, Capilano Manuka Honey, Capilano Premium Selections and Capilano
Creamed and pot set. In the recent itmes the Australian honey maker has been further seen to be

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in the joint venture with Comvita, with the immediate effect. This has been further seen to be
based on the unrealized benefit from Queensland-based operations (Capilanohoney.com. 2017).
Issue 2
The main reason for the preparation of the financial statement has been able to present
the results of the financial position and the operations for the parent company. One more
subsidiaries as if they are considered as an individual entity as it was a single company.
Consolidation is seen to be necessary as the corporation own the majority of the stock for another
corporation with the outstanding common stock. The main form of the accounting principle has
been applied with the preparation of the separate financial statements. It needs to be further
considered that the individual company is seen to maintain individual accounting records. The
parent company of Capilano had to prepare consolidated financial statements to be more useful
in consideration of the individual financial transactions.
Issue 3
The issued capital has included opening balance. The opening balance of the ordinary
shares in 2017 has been further seen to be 9457481 valued at $ 24586831 for the parent
company. The subsidiary of the company has been further seen to be considered as per the
8597121 shares valued at $ 8228220. The share issued has been further seen to be 860360 valued
at $ 16777020. The closing balance of the shares has been further seen to be $ 24532156 with
total of 9457481 shares. The subsidiary company has been seen to be having a share capital of $
24586831 with total of 9457481 shares. It has been further identified to be owned by Capilano.

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Issue 4
It has been discerned that the published set of the financial report is not seen to reveal the
policy on corporate governance, audit committees, solvency and sustainability. However, the
company publishes the corporate governance documents in form of separate entities. Some of the
main form of the corporate reports published by the company includes corporate governance
statements, board charter, audit and compliance report, human resource and remuneration report
of the common charter. Some of the various types of the other report of the company have been
seen in terms of the inclusion of Honey supply and industry. Hence the company has considered
all the aforementioned aspects in separate reports.
Issue 5
Minority interest is that non-controlling interest (NCI), which has been identified with
less than 50% of company’s equity of another company. For the purpose of accounting, minority,
the fractional share of the company has been seen be considered less than 50% of the voting
tights. The minority interest is able to show the noncurrent liability stated in the balance sheet
with the majority of the interest represented as proportion of its subsidiaries. This is seen to be
owned by the minority shareholders. Some of the main form of interpretations from the annual
report has suggested that the company maintains as separate entity hence it does not need to
specify non-controlling interest.
Issue 6
The goodwill is seen to be carried at cost, less the accumulated impairment losses. The
Goodwill has been further seen to be calculated with the excess of the transfer of the acquisition
date based on the fare value of the net identifiable assets. The Goodwill as per the acquisition of

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the subsidiary is further seen to be included in the intangible asset. The impairment of the
goodwill and the intangible assets has been further seen to be considered as per indefinite lives of
the assets. The company is not seen to be having any goodwill on 2017.
Issue 7
The functional currency has been considered as per the consolidated entity has been further
seen to be measured based on the currency in the primary economic environment in which the
members are seen to operate. The consolidated financial statement has been further seen to be
considered as per the monetary items and the same has been translated at the end of each year
based on the exchange rate. The foreign currency items of the company are further seen to be
translated at the end of each year and the non-monetary items are seen to be measured with the
historical cost and carried at the exchange rate.
Issue 8
At the end of the financial year it has been seen that the different type the consideration made
for the disclosures for the directors and key management personnel is based on the remuneration
disclosure. The main disclosure for the directors and executives remuneration has shown cash
salary and fees, various types of the non-monetary benefits, bonuses and the post employment
benefits for the super-annuation. The contracts associated to the insurance are further seen to
prohibit the disclosure and the nature of cover. The board has taken various initiatives for
Continuous Disclosure Policy to ensure the compliance with the disclosures under the
Corporations Act 2001 (Capilanohoney.com. 2017).

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On the aforementioned considerations it can be expected that all the issues have been
resolved. If there is any other query kindly revert for further details.
Thanking You

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References
Capilanohoney.com. (2017). [online] Available at:
http://www.capilanohoney.com/uploads/Corporate/annual-reports/pdf/2016:Annual
%20Report.pdf [Accessed 29 Aug. 2017].
Capilanohoney.com. (2017). Our Range. [online] Available at:
http://www.capilanohoney.com/au-en/our-range [Accessed 29 Aug. 2017].