Australia Post- Finance Report

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  • Topic: Qantas, Australian air Express, Australia Post
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  • Published : February 2, 2013
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ACCM4300 - Financial Reporting Assignment

Assignment

1. Identify the Head Corporation of Australia Post for Annual Report of 2011. The Head corporation of Australia Post is Australian Postal Corporation formerly known as Australian Postal Commission.

2. Identify the jointly controlled entities held by Australia Post at 30th June 2011. List the percentage of ownership interest.

Australia Post has number of subsidiary and joint venture with national and international entities.

Entities| Parent Shareholders| Outside Equity Interest|
 | Direct| Indirect| Direct| Indirect|
 | %| %| %| %|
Australia Post (Parent)| 100| | | |
AUX (parent and subsidiary)| 50| | 50| |
Star track express| | 50| | 50|
Australia Air express| | 50| | 50|
Wetherill park Partnership| 50| | 50| |
Sai Cheng Logistics International Company Limited| 49| | 51| |

3. Australia Post holds a fifty percent investment in AUX Investments. What are the two business operations owned by AUX Investments.
Australia post holds a fifty percent investment in AUX Investments. AUX holds 100% investment in * Australian air Express, Australia's leading domestic express air freight service company. * Star Track Express, a premier road express transport and logistics solutions provider. 4.Using the table as a guide, demonstrate your understanding of the ownership structure for AUX Investments. You may also like to show by illustration, the corporate group.

AUX investments holds other two entities. Following diagram is illustrating the corporate group.

Australia Post

50%

AUX Investments

Star Track Express

Australia Air Express
50%50%

5.Australia Post impaired their investment in Wetherill Park Partnership. (a) How much was the impairment for the year ended 30th June 2011. Australia Post impaired their investment in Wetherill Park Partnership for the year ended 30th June 2011 was $4.5 million. (b) How does an impairment cost arise in the investment in Wetherill Park Partnership? Goodwill included in the carrying amount in the investment in jointly controlled entities is not tested separately for impairment test, rather the entire carrying amount of the investment is tested for impairment as a single asset. The impairment amount is not allocated to the goodwill of the jointly controlled entity. Goodwill acquired in a business combination is initially measured at cost of the business combination being the excess of the consideration transferred over the fair value of the group’s net identifiable assets acquired and liabilities assumed. If this consideration transferred is lower than the fair value of the net identifiable assets of the subsidiary acquired, the difference is recognised in profit or loss. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-generating units), to which the goodwill relates.

6.Identify the three business units that were tested for impairment of goodwill during the financial year, and the amounts held as goodwill in each business. The three business units were tested for impairment of goodwill were Messenger Post , Secure Pay Holdings and others.

Goodwill acquired through business combinations has been allocated to individual cash-generating units as follows:

Business Units|  | Amount|
Messenger Post|  | $ 9.9 million|
Secure Pay Holdings| $ 32.2 million|
Other |  |  | $ 1.1 million|
Total| | | $ 43.2 million|

7.Australia Post acquired 100 percent of the issued share capital of Secure Pay Holdings Pty.Ltd. What was the goodwill (discount) on acquisition. What were the reasons given for the acquisition of Secure Pay Holdings Pty.Ltd.

SecurePay operated as an...
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