1. Explain what is presented on the Qantas Limited Consolidated Income Statement and Consolidated Balance Sheet with respect to non-controlling interests for the year ended 30 June 2016. Explain what you learn from the ‘Notes to the Financial Statements’ within the Qantas Limited Annual Report a Can you and the percentage of non-controlling interest in each case? Explain. Contrast Qantas’ disclosures to the requirements of AASB12, do you think that the Qantas group has adequately complied with these requirements? Explain. How would Qantas justify that it has adequately complied with the requirement of AASB12? In forming your response, explain what you find within the Qantas Limited Annual Report, where it is disclosed, and your perspective on the adequacy of the information disclosed. (12 marks) 2. Identify and briefly explain all disclosures provided within the Qantas Limited Annual Report for the year ended 30 June 2016 in relation to its investments in associates and joint ventures. In your explanation, include an explanation of how the line item, ‘investments accounted for under the equity method’ in the Consolidated Balance Sheet would have been measured. You have a friend who is still studying ACCT2011 who asks, what is ‘fair value’ and would measurement of the investment in accordance with AASB128 be similar to fair value? Explain. (8 marks) 3. Referring to the consolidated financial statements and notes to the consolidated financial statements Section F from the Virgin Australia Group Annual Financial Report 2016, comment on how Virgin Australia Group has arguably Limited. Your answers should explain Virgin Australia Group’s disclosures regarding its interests in subsidiaries, the non-controlling interests in the subsidiaries, and Virgin Australia Group’s interests in joint ventures and associates. (6 marks) ACCT3011 Assignment S2 2017 4. Virgin Australia Group holds a 49% interest in Virgin Samoa Limited. Virgin Australia Group applies the equity method to account for this investment. How would Virgin Australia Group has formed the professional judgement that Virgin Samoa Limited ? Your answers should include, but not be limited to, and any relevant facts Virgin Australia Group would have assessed, in forming the conclusion that it should use the equity method to account for Virgin Samoa Ltd. (6 marks) 5. Provide your critical perspectives on the Provide your to ensure report preparers provide better information for users in future. You would need to assess other related paragraphs within AASB12 to gain a better understanding of the standards, but in your written response, consider only the following paragraphs within AASB12: • Paragraphs 10 and 12 – interests in subsidiaries • Paragraph 21 – interests in joint venture and associates (12 marks)
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