Essays on BHP Billiton Limited Assignment

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The paper "BHP Billiton Limited" is a perfect example of a business assignment.   BHP Billiton is a global natural resource corporation formed in the year 2001 by the merger of BHP and Billiton Plc. The company is involved in mining ore, steel oil, and gasses. The corporation is also interested in engineering and transportation. The company is a subsidiary investment of BHP Iron Ore (Jimblebar) Pty Ltd worth 85 % share. The subsidiary company invests in iron ore mining. The proportion of ordinary shares held in principal subsidiaries is disclosed in Note 26 to the note to the financial statement ‘ Subsidiaries’ . The group follows the goodwill method BHP Billiton assumed the full process of realizing goodwill.

This is reflected in the Goodwill and intangible asset accounting policy for BHP Billiton annual reports in 2014. How goodwill or gain on bargain purchase is calculated and Disclosed The company estimates goodwill on an acquisition where the difference in the value of the consideration paid for business combinations in excess of the fair value of BHP Billiton’ s share of the realizable asset How revaluation of assets of the subsidiary is done According to the annual financial statement of BHP Billiton, limited there is asset revaluation (BHATTACHARYYA, 2012).

Revaluation of subsidiary asset is done by taking into account changes in fair value from the time of subsidiary asset purchase. The difference is credited to the revaluation reserve account. Testing impairment of goodwill BHP Billiton does not amortize goodwill; however, its carrying amount is ascertained yearly against its recoverable amount. This is explained by the impairment of fixed assets. On a subsequent disposal of a prior acquired business, the company considers any remaining balance of goodwill and includes it in the determination of the profit or loss on disposal weak termination. 5.

Calculating non-controlling interest and its disclosure Non-controlling interest is the share of equity rights in a subsidiary not attributable to the parent company. Nom-controlling interest= {purchase consideration-share of net asset}. The proportion of Non-controlling interest is accounted for in the consolidated income statement as net income attributable to subsidiary concern.  

References

Barry J. Epstein, R.N.S.M.B., 2009. Wiley GAAP 2010: Interpretation and Application of Generally Accepted Accounting Principles. 6th ed. New york: John Wiley & Sons.

BHATTACHARYYA, A.K., 2012. Essentials of Financial Accounting: BASED ON IFRS. Sydney: PHI Learning Pvt. Ltd., 2012.

James Wahlen, J.J.D.P., 2012. Intermediate Accounting: Reporting and Analysis. New York: Cengage Learning, 2012.

Paul Fischer, W.T.R.C., 2015. Advanced Accounting. New York: Cengage Learning, 2015.

Saudagaran, S.M., 2009. International Accounting: A User Perspective. London: CCH, 2009.

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