Financial Accounting

Deadline - 16th April

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1. Additional information (b) – what this statement means is that from 30 June 2016, Hana adopted
the revaluation method for its land existed on the date of acquisition (1 July 2015). In other
words, for the first year subsequent to acquisition (1 July 2015-30 June 2016), the revaluation
adjustment for consolidation purposes is to be done in group accounts but for the second year
subsequent to acquisition (1 July 2016-30 June 2017) the revaluation adjustment already done in
Hana’s individual books. This will have impact on the components of equity items for the pre-
acquisition elimination entries for 30 June 2017. Total equity to be eliminated, however, should
not be any different from the prior year.
2. Additional information (c) – it is to be assumed that inventories mentioned here were all sold to
external parties by 30 June 2017.