Finance Homework: Wesfarmers Annual Report 2018 Analysis

This assignment analyzes the Wesfarmers 2018 annual report, focusing on key subsidiaries and the amount of total comprehensive income for the year ended June 30, 2018. The analysis identifies key subsidiaries of Wesfarmers and determines that there is no non-controlling interest due to 100% ownership. The total comprehensive income is identified, and its components are described. The assignment also includes consolidation journal entries based on transactions between Parent Ltd and Subsidiary Ltd, addressing intercompany sales and unrealized profits. The solution provides detailed calculations and explanations for each component, ensuring a comprehensive understanding of the financial concepts involved.

Answer (a)Wesfarmers is the Australia largest public listed company with it headquarter in Perth.
The principal business of wesfarmers include liquor, hotels, supermarket, departmental stores, office
supplies, industrial supplies with also major business in chemical, fertiliser and energy business.
Wesfarmers also has largest private employees with more than 2,17,000 employees and the
management of the company is owned by more than 4,95,000 shareholders. (Wesfarmers Annual
Report, 2019)
The major key subsidiaries of the company Wesfarmers limited are here in below:
1) A.C.N. 003 921 873 Pty Limited
2) A.C.N. 004 191 646 Pty Ltd
3) A.C.N. 007 870 484 Pty Ltd
4) A.C.N. 008 648 799 Pty Ltd
5) A.C.N. 008 734 567 Pty Ltd
6) A.C.N. 082 931 486 Pty Ltd
7) A.C.N. 092 194 904 Pty Ltd
8) A.C.N. 112 719 918 Pty Ltd
9) AEC Environmental Pty Ltd
10) Andera Pty Ltd
11) ANKO Retail Incorporated
12) Australian Gold Reagents Pty Ltd
13) Australian Graphics Pty Ltd
14) Australian International Insurance Limited
15) Australian Liquor Group Ltd (Wesfarmers Annual Report, 2019)
16) Australian Underwriting Holdings Limited
17) Australian Underwriting Services Pty Ltd
18) Australian Vinyl’s Corporation Pty Ltd
19) AVC Holdings Pty Ltd
20) AVC Trading Pty Ltd
21) BBC Hardware Limited
22) BBC Hardware Properties (NSW) Pty Ltd
23) BBC Hardware Properties (Vic) Pty Ltd
24) Beddington House (No.4) Limited
Since the Wesfarmers hold 100% stake in subsidiaries there cannot be any non controlling interest.
Answer (b) The amount of total comprehensive income for the year ended 30 June 2018 is around
$21,02 million. Refer pg: 136 of Annual Report.
Since the Wesfarmers hold 100% stake in subsidiaries there cannot be any non controlling interest
and 100 percent of the amount is attributable to the shareholders of the parent company.
The components of the wesfarmers comprehensive income includes
 Foreign Currency translation Reserve
 Cash Flow hedge Reserve
 Retained Earnings

References
Wesfarmers Annual Report. (2019, May 11). Retrieved from /www.wesfarmers.com.au:
https://www.wesfarmers.com.au/docs/default-source/asx-announcements/2018-annual-
report.pdf?sfvrsn=0
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