Question One On 1 July 2022, Swift Ltd acquired all the issued shares of Celtic Ltd for $250 000. At this date, the equity of Celtic Ltd was made up of the following items: Share capital 3105 000 Retained earnings ~ $35 200 Revaluation surplus $15,000 All the identifiable assets and liabilities of Celtic Ltd were recorded at amounts equal to fair values except for an item of land whose carrying amount was 6% less of its fair value of $165 000. The tax rate is 30%. During the financial year end 30 June, the following relevant transactions were highlighted by the accountant, Ms Martins, for the purpose of preparing the consolidated financial statements of Swift Ltd and its subsidiary: s Animpairment loss on goodwill of 20% must be recognised as result of the impairment testing conducted at year end. s During the year, Swift Ltd made sales of inventories to Celtic Ltd that amounted to $45 000. At 30 June 2023, inventories which were sold to Celtic Ltd for $15 200 at a profit before tax of $4200 were still on hand in the books of Celtic Ltd and subsequently sold the inventory back to Swift Ltd for $20 000. s On | January 2023, Celtic Ltd sold new machinery to Swift Ltd for $105 000. The cost of the machinery to Celtic Ltd was $180 000 and had been in use for the past five years on the date of sale. The machinery was considered to have an 8-year life. The following financial information was provided by the companies for 30 June 2023: Swift Ltd Celtic Ltd Sales revenue 81 400 43 500 Dividend revenue 4 500 1 050 Other income 40 000 2 000 Total income 125 900 46 550 Cost of sales (49 300) (21 000) Other expenses (12 300) (5.700) Total expenses (61 600) (26 700) Profit before income tax 64 300 19 850 Income tax expense 28 590 (5 800) Profit for the year 35710 14 050 Retained earnings (1/7/22) 27 500 35200 Dividend paid 17 540 (4 000) Retained earnings (30/6/23) 45 670 45 250 Required: (a) Prepare the consolidation worksheet for profit or loss and other comprehensive income and the consolidated statement of changes in equity of the Swift Ltd group for 30 June 2022. Show all the relevant workings associated with consolidated adjusting entries with explanations. (b) Premised on the context of Swift Ltd group and available information, provide two relevant disclosures in the notes to the consolidated financial statements of Swift Lid group. Question Two According to paragraph 4 of AASB 12, an entity considers the level of detail necessary to meet the disclosure requirements of the objectives of AASB 12. Present a critical analysis of the potential \"pros and \"cons\" associated with this provision on the basis of accounting information quality