Reference no: EM132472621

Company Accounting - a memorandum to the Board of Directors (the members of the Board have varying degrees of accounting knowledge or understanding) as noted in the assignment details.

From 2019 AGL company annual report

• Read the Annual Report including the financial statements of the Group and a Memorandum to the Board of Directors clearly explaining some of the technical aspects of consolidation.

• Make sure you draw on the company's specific details to explain the intricacies of consolidation to the Board and as much as possible avoid answering in general terms. Please make sure that your assignment is in a MEMO

Question 1. Why did the parent entity have to prepare consolidated financial statements when the subsidiary company is a separate legal entity in its own right?

Question 2. Does the published set of group financial statements reveal the company's policy on corporate governance, audit committees, sustainability and solvency? Does it reveal these issues and if so where and why?

Question 3. Has there been any goodwill on the acquisition? Or any gain on bargain purchases? Where would you find it in the financial statements and what does it mean? Any impairment to consider?

Question 4. Any other relevant matter that you may wish the Board of Directors to make note of in respect of some transaction or event, the balance of account or disclosure that will assist them in understanding the financial statements of the group.