This report, prepared by a graduate accountant for Power Ltd, addresses key issues in accounting and financial reporting, particularly those arising from the acquisition of Cargo Ltd. The report examines the fair value measurement of assets in consolidated financial statements, referencing AASB 3 Business Combinations. It discusses the revaluation of assets under AASB 116, focusing on revaluation surpluses and their treatment. Furthermore, the report clarifies the treatment of equity accounts in the context of consolidation, considering the impact of AASB 132 and the ongoing existence of these accounts. The analysis provides insights into the accounting standards applicable to these issues, offering guidance on appropriate valuation entries and treatments in financial statements. The report is structured as a memo to the CFO, providing a clear and concise explanation of the accounting principles involved.