Kieran Knowles is the assistant accountant for the Vivo Ltd, a public company group. Kieran has recorded the following entries in the consolidation worksheet for the year ended 30 June 2023, using a tax rate of 30%. Apply AASB 10 and AASB 112.

Transaction 2:

Vivo Ltd sold inventory for $21,000 to a subsidiary on 30 April 2023. Vivo Ltd had paid $13,000 for this inventory. On 30 June 2023 the subsidiary company reported 60% of this inventory had been sold to external parties for $29,000. Consolidation entry 30 June 2023: Sales 50,000-Debit ($) Cost of goods sold 29,000- Credit ($) Inventory 21,000-Credit ($) Income tax expense (ITE) 6,300-Debit ($) Deferred Tax Asset (DTA) 6,300-Credit ($)

Required:

As the group accountant of Vivo Ltd, you are required to review Kierans worksheet entries. Apply appropriate referencing and technical knowledge to address the following using AASB 10.

(a) For each transaction above, identify all errors or omissions by Kieran and explain the reason why the entry is incorrect in accordance with the relevant Australian (International) accounting standards.

(b) In your discussion, provide all the correct consolidation worksheet entries required for each of the above transactions for the Vivo Ltd group, as at 30 June 2023. Explain which account and amount will be debited and credited. Include any tax effects in your discussion.