Wesfarmers is described as a diversified industrial. The business has a significant list of subsidiaries. In 2007, Wesfarmers acquired Coles Group for $22 billion. It was the largest corporate takeover in Australia at the time. The acquisition was $17 ex dividend per share. This represented a 48.4% premium on Coles shares.

Wesfarmers have investments that are not considered subsidiaries. The Wesfarmers group exert “significant influence” on these entities.

(a) Explain the term ‘Significant influence’ and list indicators of significant influence.

(b) List the businesses in which Wesfarmers is an associate. How does Wesfarmers treat the goodwill in these investments?