Topic 1 Part A (75%)    FMCG Ltd (who is in dispose-of affair) has to equip its confused financial declarements at 30 June 2019. FMCG Ltd had extraneous its 85% cause in RG Ltd on 1 July 2017, that is, two years precedent. At that determination the important and reserves of RG Ltd were:  Share important $200,000 Retained hues $170,000    At the determination of compensation all asset of RG Ltd considered to be spotless esteemd.  The financial declarements of FMCG Ltd and its favourable RG Ltd at 30 June 2019 are as follows:  Statement of financial position  Description  FMCG Ltd ($000) RG Ltd ($000) Running effects   Accounts receivable 60 62 Register 90 30 Non-running effects   Land and buildings 225 325 Plant-at absorb 300 356 Accumulated slander (86) (140) Boarding in RG Ltd 360 - Sum  949 633    Current liabilities   Accounts payable 56 45 Taxation payable 42 24 Non-running liabilities   Loans payable 175 118 Shareholders’ equity   Share important 350 200 Retained hues 326 246 Sum 949 633    Detailed arbitration of aperture and noncommunication retained hues  Description  FMCG Ltd ($000) RG Ltd ($000) Sales fruits 700 575 Absorb of property sols (465) (235) Gross compensation 235 340 Expenses   Administration charges (30) (40) Address fee charges - (26) Slander (25) (55) Other charges (102) (76) Other proceeds    3    Management fee proceeds 26 - Dividends from RG Ltd 75 - Gain on sale of stock 35 - Compensation anteriorly tax 214 143 Tax charge (65) (43) Compensation for the year 149 100 Retained hues- 30 June 2018 315 240  464 340 Dividends compensated (138) (94) Retained hues- 30 June 2019 326 246    Following are the roll of transactions betwixt FMCG Ltd and its favourable RG Ltd during the year 1 July 2018 to 30 June 2019: • RG Ltd compensated $26,000 in address fee to FMCG Ltd. • FMCG address fast that the benignity is impaired by $5,000 in the running financial year. Anterior accumulated imbecility amounted to $22,000. • During the year FMCG Ltd made sum sales to RG Ltd of $60,000, opportunity RG Ltd sold $50,000 in register to FMCG Ltd.  • The aperture register in FMCG Ltd as at 1 July 2018 middle register extraneous from RG Ltd for $40,000 that had absorb RG Ltd $33,000 to result.  • The noncommunication register in FMCG Ltd includes register purchased from RG Ltd at a absorb of 33,000. The absorb of this register to RG Ltd was $27,000. • The noncommunication register of RG Ltd includes register extraneous from FMCG Ltd at a absorb of $12,000. This absorb FMCG Ltd $9,000 to result. • On 1 July 2018, FMCG Ltd sold an part of equipment to RG Ltd for $120,000 when its carrying esteem in FMCG Ltd was $80,000 (absorb of $132,000, accumulated slander of $52,000). Remaining suited spirit for this equipment is being assessed as six years. • Address of FMCG Ltd esteems any non-controlling cause at the easy portion-out of RG Ltd’s identifiable net effects. • Applicable tax trounce is 30%. • All congenial amounts are to be rounded to the unswerving unimpaired dollar.    Required: Equip the alliance eliminations journals certain and required anteriorly provision of confused financial declarements of FMCG Ltd and its favourable (declare narrations to journals, arrange serene workings and explanations). As-well equip a vigilance of non-controlling cause at compensation determination, betwixt compensation determination and the commencement of the reporting end and for running reporting end.  (30 marks)   4    Topic 1    Part B (12.5%)    The confused financial declarements of FMCG Ltd and RG Ltd were presented to the Board. The Board is fainthearted that the economic being’s counterpoise subterfuge (confused counterpoise subterfuge) shows a wide tax counterpoise, when the accounts for FMCG Ltd had no wide tax asset or wide tax amenability.  FMCG address is as-well planning to reap another being ABC Investments Ltd in the close forthcoming. Address sharp out to the Board that on compensation, the financial results of this new favourable (ABC Investments Ltd) procure as-well be confused in the economic being financial declarements.  One of the Board members exalted that the new afspotless to be extraneous by FMCG Ltd is an boarding posse. Its financial declarements should not be confused consequently it is compromised in boardings perseverance, since all of the other companies in the economic being are compromised in dispose-of perseverance.  Required:  As the financial accountant you are requested to equip a confutation to the subjoined questions:  (a) Why does the economic being enjoy a wide tax counterpoise? (2.5 marks)    (b)  Should the financial declarements of projected extraneous affair, ABC Investments Ltd, be confused into the economic being and why? (2.5 marks)    Please hush that in your confutation you must create allusion to pertinent paragraphs of the Accounting Standard and/or AASB Framework and to other sources of esthetic.     5    Topic 2 (12.5%)  Paragraph 23 of an precedent account of IAS 38 Unconscious Effects declares that:  The Board’s end, conformably reflected in anterior proposals for unconscious effects, is that there should be no contrariety betwixt the requirements for: (a) unconscious effects that are extraneous externally; and (b) internally generated unconscious effects, whether they originate from outgrowth activities or other types of activities.  Required: Evaluate the over end, demonstrate and teach inconsistencies betwixt this end and the running requirements of AASB 138. (5 marks)