Question -
Read the annual report including the financial statements of BHP gather all the latest information and write a memorandum to the board of directors clearly explaining some of the technical aspects of consolidation. Make sure that you draw on the group company's specific details to explain the intricacies of consolidation to the board, and as much as possible avoid answering in general terms. Please note that your response MUST be in the format of MEMO - not a report format and also you need to provide references which include page no of the report used .questions you need to answer are:-
1. The composition of the group; namely the subsidiaries, associates, any joint ventures and any other significant investments. The group's main business operations
2. Why did the parent entity have to prepare consolidated financial statements when the subsidiary company is a separate legal entity in its own right?
3. How is the group of companies funded? Share capital, debentures? Any options, bonus issues etc. Who owns the group?