The financial statements for the year ending 30 June 2020 for the economic entity have been prepared on the basis of your journals from Part A. These statements have been presented to the Board of Directors.

One of the Board members pointed out that the new business acquired by Wholesale Ltd is a construction company. The Board of Directors is concerned about some financial challenges to acquire a business in a different industry.

From a financial accounting perspective, the Board raised the following question: 'What are some possible financial challenges to acquire a business in a different industry, and any possible plans/solutions to overcome those challenges?' (250 words maximum)

You may make reference to relevant paragraphs of Australian Accounting Standards, Conceptual Framework and to other sources of material.

Journals from part a: https://www.chegg.com/homework-help/questions-and-answers/wholesale-ltd-acquired-80-per-cent-shares-house-construction-ltd-30-june-2020-consideratio-q56106114