1) Prepare the consolidated statement of financial position of Aubin Plc as at 30 September 2015.

2) Intercompany transactions, receivables, liabilities and unrealised profits are eliminated on consolidation.

a. Discuss 3 examples of intercompany transactions.

b. What is meant by are eliminated?

c. Explain what effect there could be on the consolidated financial statements if they were not eliminated.

Aubin Plc prepares its consolidated financial statements in accordance with IFRS and has investments in two companies, Bobin Ltd and Cabin Ltd. The draft, summarised of financial position of the three companies at 30 September 2015 is as shown below: Aubin 000 Bobin 000 Cabin 000 Assets Non-current assets Property, Plant and Equipmer Investments nt7,080 2,800 3,600 6,000 13,080 2,800 3,600 Current assets Inventories Trade and other receivables Cash and cash equivalents 1,350 240 5.5 2,337.6 1,595.51,086.5 15,417.64,395.5 4,686.5 1,560 740 37.6 890 196 0.5 Total assets Equity and Liabilities Equity Ordinary share capital (1 7,000 2,000 4,000 share) 500 5,054.6 1,543.9(111.5) 14,054.64,043.93,988.5 100 Share premium account Retained earnings 2,000 Total equity Non-current liabilities Borrowings 300 50 287 Current liabilities 145.5 41.5 224 411 678 156.6 Trade and other payables Bank overdraft Taxation 145 301.6 15,417.64,395.5 4,686.5 385 1063 Total equity and liabilities Aubin Plc prepares its consolidated financial statements in accordance with IFRS and has investments in two companies, Bobin Ltd and Cabin Ltd. The draft, summarised of financial position of the three companies at 30 September 2015 is as shown below: Aubin 000 Bobin 000 Cabin 000 Assets Non-current assets Property, Plant and Equipmer Investments nt7,080 2,800 3,600 6,000 13,080 2,800 3,600 Current assets Inventories Trade and other receivables Cash and cash equivalents 1,350 240 5.5 2,337.6 1,595.51,086.5 15,417.64,395.5 4,686.5 1,560 740 37.6 890 196 0.5 Total assets Equity and Liabilities Equity Ordinary share capital (1 7,000 2,000 4,000 share) 500 5,054.6 1,543.9(111.5) 14,054.64,043.93,988.5 100 Share premium account Retained earnings 2,000 Total equity Non-current liabilities Borrowings 300 50 287 Current liabilities 145.5 41.5 224 411 678 156.6 Trade and other payables Bank overdraft Taxation 145 301.6 15,417.64,395.5 4,686.5 385 1063 Total equity and liabilities