This corporate accounting assignment solution addresses the consolidation of financial statements, specifically focusing on the acquisition of a subsidiary. The solution begins with an acquisition analysis, calculating goodwill based on fair value adjustments to assets, liabilities, and non-controlling interest (NCI). It then presents business combination valuation entries, including adjustments for inventories, land, furniture, fittings, deferred tax assets and liabilities, and the business combination valuation reserve. Pre-acquisition entries are also included to write off accumulated depreciation. Further, the solution details the NCI share in equity at acquisition, the consolidation worksheet entries, and the workings for depreciation differences and NCI share for the current year. The assignment concludes with a discussion on consolidation methods, including partial and full goodwill methods, and their impact on financial reporting, referencing relevant accounting standards such as AASB3 and providing a list of references and bibliography.
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