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Assignment
Task details:
You are the chief accountant for Woolly Ltd, and you are preparing the consolidated financial reports for the group comprising Woolly Ltd and its subsidiary Jumper Ltd. Some of the directors of Woolly Ltd do not have an accounting background, and do not understand why you need to prepare ‘consolidated' financial reports. The directors have asked you to explain the purpose of preparing the consolidated reports.
Required:
In a report to the directors, explain the purpose of preparing consolidated financial reports, and discuss the importance of these consolidated reports to financial report users.
Your report should contain an introduction, body, and conclusion. Your report should reference Accounting Standard requirements where necessary. Word limit: 750 words.
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