• No results found

Chapter 4 Intercompany Transactions. Intercompany Sales of Merchandise. Affiliated Cos do business with each other E.g., S sells merchandise to P

N/A
N/A
Protected

Academic year: 2021

Share "Chapter 4 Intercompany Transactions. Intercompany Sales of Merchandise. Affiliated Cos do business with each other E.g., S sells merchandise to P"

Copied!
19
0
0

Loading.... (view fulltext now)

Full text

(1)

1 – Intercompany Transactions - Heading

Chapter 4 – Intercompany Transactions

• Affiliated Cos do business with each other

– E.g., S sells merchandise to P

• Books of P & S fully reflect transactions

B k h ll f th l j l t i

2 – Parent & Subsidiary Shown As 1 Company in Consolidation Financial Statements

– Books have all of the regular journal entries – E.g., books have:

• S has A/R from P • P has A/P to S

• In Consolidation P & S are shown as 1 Co.

– E.g., Must eliminate intercompany accounts (A/R & A/P)E.g., Must eliminate intercompany accounts (A/R & A/P)

• Because one Co doesn’t not owe $ to itself

– These WS entries same regardless of accounting method

• Cost, Simple Equity or Sophisticated Equity Methods

3 – Intercompany Sales of Merchandise - Heading

Intercompany Sales of Merchandise

4 – Intercompany Sales of Merchandise E.g. - #1

• Assume P sells inventory to S

– Inv orig cost $1,000 – Inv sold by P to S for $1,200 – Inv sold by S for $1,500 to 3y , rdpartyp y

• W/O eliminations

– Total Sales & Total COGS too high

S P Total

Sales $1,500 $1,200 $2,700

L COGS 1200 1000 2200

Less: COGS 1200 1000 2200

(2)

5 – Intercompany Sales of Merchandise E.g. - #2

• Consolidation shows P & S as 1 Co • Need to eliminate intercompany sale

– Get rid of $1,200 transfer price

Get rid of $1 200 COGS based on intercompany sale – Get rid of $1,200 COGS based on intercompany sale

• If you do this:

Sales $1,500 ($1500 sale to 3rdparty)

Less: COGS 1000 ($1000 original cost to Parent) Less: COGS 1000 ($1000 original cost to Parent)

Gross Profit $500

• This is done in IS entry

– IS stands for Intercompany Sale 6 – Worksheet Entry Intracompany Sale of Merchandise E.g. - #3

IS D. Sales Revenue (1stSeller) $1,200

IS C. Cost of Goods Sold (2ndSeller) $1,200

7 – IA Entry

• If intercompany sale is credit sale:

– Must eliminate A/R & A/P

• Called Intercompany Accounts

Reporting as if P & S are 1Co • Reporting as if P & S are 1Co

– You don’t owe $ to yourself

• Use End of Year Balance of A/R&A/P

IA D. Accounts Payable (2y ( ndSeller)) $1,200,

IA C. Accounts Receivable (1stSeller) $1,200

8 – Division of Profit From Sale of Merchandise Inventory - #2

• In E.g. $500 profit

– Who gets it?

– Intercompany price divides it between P & S

• P gets $200 of profit ($1200 -$1000) &P gets $200 of profit ($1200 -$1000) & • S gets $300 of profit ($1500 - $1200)

• $1,200 price used to divide $500 profit between P&S:

S P Total

Sales $1,500 $1,200 $2,700

Less: COGS 1200 1000 2200

(3)

9 – Division of Profit From Sale of Merchandise Inventory - #2

• These WS entries are the same regardless of whether you have a NCI

• You are presenting both P&S as if they are 1 Co.

Th i t f NCI d ’t h thi

– The existence of NCI doesn’t change this – It only affects who gets equity

10 – EI Entry - Heading

EI Entry

• No real sale unless you have sale to 3

rd

party (unrelated)

• Without sale to 3

rd

party

11 – Need Sale to Unrelated Third Party

• Without sale to 3

rd

party

– Really just moving inventory from seller’s to buyer’s place of business

– Reporting as if 1 Co

• You can’t sell something to yourself

d – No rev recognized unless ultimate sale to 3rd

party

12 – Division of Profit From Sale of Merchandise Inventory - #2

S P Total Sales $1,500 $1,200 $2,700 Less: COGS 1200 1000 2200 d $ Less: COGS 1200 1000 2200 Gross Profit $300 $200 $500 Not Booked Booked

• If no sale to 3rdparty P has taken $200 profit on its books

• We want to delay $200K profit until S sells inv to 3rdParty

(4)

BIG PICTURE:

• Until sale to 3

rd

party

GAAP requires

– Seller does not recognizes profit from

13 – Defer Profit Until Sale to Third Party

intercompany sale

– Intercompany profit deferred (suspended) until sale to 3rdparty

– Inventory reduced to orig cost

• After sale to 3

After sale to 3 party

rd

party

– P & S then report their share of profit on sale of merchandise

• If merchandise not sold to 3rdparty in 1styear: • 1st, do WS entries as if sale to outsider:

– Same as before 14 – EI Entry - #1

IS D. Sales Revenue (1stSeller) $1,200

IS C. Cost of Goods Sold (2ndSeller) $1,200

IA D. Accounts Payable (2ndSeller) $1,200

IA C. Accounts Receivable (1stSeller) $1,200

15 – EI Entry - #2

• Then, We need to:

– Eliminate markup from inventory

• Credit Inventory for amount of Seller’s deferred profit

– Eliminate Seller’s profit:p

• Debit COGS for amount of Seller’s deferred profit

– An increased COGS reduces profit – Allocate increased exp (COGS) to 1stSeller

• Done in EI Entry

– EI stands for Ending Inventory

• It suspends on WS (not books of P&S) the profit from the

EI D. Cost of Goods Sold $200

EI C. Inventory $200

It suspends on WS (not books of P&S) the profit from the 1stsale (and the corresponding mark up of inv) until after the inv is sold in the 2ndsale.

16 – EI entry E.g., - #101

• E.g., Assume

– P buys inv for $10,000

– P sells inv to S for $15,000 on credit

• 50% Mark Up

– S does not sell inv to 3rdparty in 1styear

• We do the following on the WS

IS D. Sales Revenue $15,000

IS C. Cost of Goods Sold $15,000

IA D. Accounts Payable $15,000

(5)

17 – EI Entry E.g., - #102

• S has all of inv at end of year • EI entry

– Defers P’s profit

EI D. Cost of Goods Sold $5,000

EI C Inventory $5 000

• Done with debit to COGS

– Reduces cost of inv to orig cost

• Done with credit to Inv

EI C. Inventory $5,000

18 – EI Entry E.g., - #102

Intercompany Sale D A/R 15000 Seller’s Books -- Revenue C Sales 15000 Seller’s Books Intercompany Sale D COGS 10000 Seller’s Books -- COGS C Inv 10000 Seller’s Books

• WS entries eliminate effects of intercompany sale

COGS C Inv. 10000 Seller s Books Intercompany Sale D Inv. 15000 Buyer’s Books -- Purchase Inventory C A/P 15000 Buyer’s Books

IS Entry D Sales 15000 WS C COGS 15000 WS IA Entry D A/P 15000 WS C A/R 15000 WS C A/R 15000 WS EI Entry D COGS 5000 WS C Inv 5000 WS

• After these entries NOTHING LEFT OF INTERCOMPANY SALE

19 – EI entry E.g., - #201

• What if S sold half of the inventory

– Half is still unsold.

• E.g., Assume

– P buys inv for $10,000

– P sells inv to S for $15,000 on credit

• 50% Mark Up

– S sells ½ of inv to 3rdparty in 1styear for $10,000 on credit

IS D. Sales Revenue $15,000

IS D. Sales Revenue $15,000

IS C. Cost of Goods Sold $15,000

IA D. Accounts Payable $15,000

IA C. Accounts Receivable $15,000

20 – EI Entry E.g., - #202

• S has ½ of inv at end of year • EI entry

– Defers P’s profit on unsold ½ of inv

EI D. Cost of Goods Sold $2,500

EI C Inventory $2 500

• Done with debit to COGS

– Reduces cost of ½ of inv to orig cost

• Done with credit to Inv

(6)

21 – EI Entry E.g., - #203

• If ½ of intercompany merchandise is sold to 3rd party for $10,000

– Sales Rev should be $10,000

• This is the sale to the 3rdparty – real sale – A/R should be $10,000

• This is the amount owed by 3rdparty – real A/R – COGS should be $5,000

• This is the original cost of the inventory sold to 3rdparty • ½ of orig cost ($10,000/2)g ( )

– Inv should go down by $5,000

• This is the original cost of the inventory sold to 3rdparty • ½ of orig cost

22

Intercompany Sale D A/R 15000 Seller’s Books

-- Revenue C Sales 15000 Seller’s Books

Intercompany Sale D COGS 10000 Seller’s Books

-- COGS C Inv. 10000 Seller’s Books

Intercompany Sale D Inv. 15000 Buyer’s Books

-- Purchase Inventory C A/P 15000 Buyer’s Books

3rdP t S l D A/R 10000 B ’ B k

3rdParty Sale D A/R 10000 Buyer’s Books

-- Revenue C Sales 10000 Buyer’s Books

3rdParty Sale D COGS 7500 Buyer’s Books

-- COGS C Inv. 7500 Buyer’s Books

IS Entry D Sales 15000 WS C COGS 15000 WS IA Entry D A/P 15000 WS C A/R 15000 WS EI Entry D COGS 2500 WS C Inv 2500 WS

• After you are done with these entries:

• Sales Rev $10K increase; A/R $10K increase • COGS $5,000 increase; Inv $5,000 decrease

23 – Division of Profit From Sale of Merchandise Inventory - #2

• If P is intercompany seller

– Nothing wrong with S’s inc

• Income Distribution Schedule of WS:

Subsidiary Income Distribution

Internally generated net income $50,000 Adjusted income $50,000 NCI share 20%

NCI $10,000

24 – Division of Profit From Sale of Merchandise Inventory - #2

• If P is intercompany seller & no sale to 3rdparty

– P’s inc has intercompany profit which must be deferred • Done with EI entry

• Increase in COGS fro EI entry reduces profits on WS

Parent Income Distribution Unrealized profit in

ending inventory

$5000 Internally generated net income

$100,000 – Given to intercompany seller in Income

Distribution Schedule

80% of Sub adjusted income of $50,000

40,000

(7)

25 – BI Entry - Heading

BI Entry

26 – BI Entry - #1

• What about the next year?

• If intercompany merchandise is sold to 3rdparty • Now, intercompany seller can take deferred profit

PROBLEM ll t k d f d i t

• PROBLEM seller took deferred intercompany profit last year on its books

– So, deferred intercompany profit is already reported in 1stseller’s RE

• 1st need to eliminate deferred intercompany profit from 1stseller’s beginning RE

profit from 1stseller s beginning RE

• 2nd give 1stseller deferred intercompany profit this year

27 – BI Entry - #2

• WS entry called BI for Beginning Inventory – Debit to RE reduces beginning balance of RE

• When P gets deferred profit that will

i RE t d f thi

increase RE at end of this year – Credit to COGS increases profits

• Given to intercompany seller

• Gives intercompany seller profit deferred from previous year

BI D. Retained Earnings $5,000

BI C. Cost of Goods Sold $5,000

28 – BI Entry Income Distribution Schedule - #1

• If P is intercompany seller

– Nothing wrong with S’s inc

I Di t ib ti S h d l f WS

Subsidiary Income Distribution

Internally generated net income $50,000 Adjusted income $50,000

• Income Distribution Schedule of WS:

NCI share 20%

(8)

29 –BI Entry Income Distribution Schedule - #2

• Assume

– P gets deferred profit from last year - $5K • BI Entry

Parent Income Distribution

Internally generated net income $100,000 Deferred Profit In Beginning

Inventory 5,000 80% of Subsidiary adjusted $ 40,000 income of $50,000 Controlling Interest $145,000

30 – Intercompany Sales of Merchandise – Miscellaneous Issues - Heading

Intercompany Sales of Merchandise

– Miscellaneous Issues

– Miscellaneous Issues

31 – Intercompany Sales of Merchandise – Miscellaneous Issues - Heading

Controlling Interest vs.

Non-Controlling Interest

Non-Controlling Interest

32 – Division of Profit From Sale of Merchandise Inventory - #2

• Remember that intercompany price divides it between P & S

– P gets $200 of profit ($1200 -$1000) & – S gets $300 of profit ($1500 - $1200)g p ( ) S P Total Sales $1,500 $1,200 $2,700 Less: COGS 1200 1000 2200 Gross Profit $300 $200 $500 Gross Profit $300 $200 $500

(9)

• This is important if NCI

– NCI gets share of S’s profit – NCI gets none of P’s profit

33 – Division of Profit From Sale of Merchandise Inventory - #1

NCI gets none of P s profit

34 – If Subsidiary is Intercompany Seller - #1

BI D. Retained Earnings $5,000

BI C. Cost of Goods Sold $5,000

• When P is intercompany seller • BI entry has debit to RE:

• When P is intercompany seller

• Use P’s RE

• When 100% owned S is intercompany seller

• Use P’s RE

– When S (with NCI) is intercompany seller

• Use P’s RE for CI share of deferred profit

• Use S’s remaining RE for NCI share of deferred profit

35 – If Subsidiary is Intercompany Seller - #1

• E.g., If P owns 80% of S, then split debit to RE:

BI D. Retained Earnings, Parent (80%) $4K

Retained Earnings, Sub. (20%) 1K

BI C. Cost of Goods Sold $5K

36 – Intercompany Sales of Merchandise – Miscellaneous Issues - Heading

Intercompany Sales of Merchandise

At Loss

(10)

37 – Periodic Inventory System

• What if intercompany sale produces a loss

– If inventory really dropped in value

I t ll i l

• Intercompany seller can recognize loss

• Can recognize loss w/o sale using LCM anyway

– If the loss is artificial

• Loss is deferred until sale to 3rdparty

38 – Intercompany Sales of Non-Depreciable Asset - Heading

Intercompany Sales of

Non-Depreciable Asset (Land)

Depreciable Asset (Land)

39 – Intercompany Sales of Non-Depreciable Asset - #1

• Intercompany sale of non-depreciable

asset (Land)

– gain deferred until asset sold to unrelated 3gain deferred until asset sold to unrelated 3rd party

• If asset never sold, deferral is permanent

• WS entry called LA Entry

– LA stands for Land or Land Adjustment

40 – Intercompany Sales of Non-Depreciable Asset - #1

• 1stYear

– Debit for gain defers intercompany seller’s gain – Credit eliminates mark-up (intercompany profit) from

LA D. Gain on Sale of Land $Mark-Up

Credit eliminates mark up (intercompany profit) from cost of Land

• Returns Land to its original cost

(11)

41 – Intercompany Sales of Non-Depreciable Asset - #2

• Later Years

• If P is intercompany seller

LA D. Retained Earnings, Parent $Mark-Up

LA C. Land $Mark-Up

• This WS entry done each year until Land is sold to 3rdparty

42 – Intercompany Sales of Non-Depreciable Asset - #3

• Year where Land sold to 3rdparty

– Still need to take it out of seller’s RE

• Doesn’t belong there YET D bit RE

LA D. Retained Earnings, Parent $Mark-Up

• Debit RE

– Allow intercompany seller to take profit

• Credit to Gain g p LA C . Gain on Intercompany Sale of Land $Mark-Up

43 – Intercompany Sales of Depreciable Assets - Heading

Intercompany Sales of Depreciable

Assets

Assets

44 – Intercompany Sales of Depreciable Asset - #1

• Gains from Intercompany sale of

depreciable assets are similar to Land

– Gain deferred until asset sold to unrelated 3Gain deferred until asset sold to unrelated 3rd party

– Write down asset back to orig cost.

• Also need to undo depreciation taken on

buyer’s books for mark-up

A t i b ’ b k t hi h l

– Asset is on buyer’s books at higher value

• It is producing too much depreciation

(12)

45 – F1 Worksheet Entry

• There are two FA entries

• First we eliminate the intercompany gain on the

FA1 D. Gain on Sale of Machinery

$10,000

FA1 C Machinery $10 000

sale of the machinery:

FA1 C. Machinery $10,000

46 – F2 Worksheet Entry

• Next, eliminate the increased depreciation expense on the machinery

– Just depreciation on the mark-up

FA2 D. Accumulated Depreciation $2,000

FA2 C. Depreciation Expense $2,000

p p

• This WS entry reduces expenses reported on • This WS entry reduces expenses reported on

buyer’s books

• It creates income on the WS (consolidation level)

• Who gets this income?

47 – Effect of Undoing Depreciation of Mark-Up - #1

• We give extra income to seller

• 1

st

year seller loses gain

• 1

st

& later years seller gets increased

• 1

st

& later years seller gets increased

income

– Eventually, seller gets extra income = its deferred intercompany gain

– This can be seen in Income Distribution

S h d l f WS

Schedules of WS

48 – Effect of Undoing Depreciation of Mark-Up - #2

Subsidiary Income Distribution

I ll d i $25 000

Internally generated net income $25,000

Adjusted income $25,000

NCI share 20%

(13)

49 – Effect of Undoing Depreciation of Mark-Up - #3

Parent Income Distribution Unrealized gain on the sale of $10,000 Internally generated net income $30,000 machine 80% of Subsidiary adjusted income of $25,000 20,000 Gain realized through use of 2,000 through use of machine sold to Subsidiary Controlling Interest $42,000

50 – F1 Worksheet Entry – Second Year

• The FA1 entry in the second year, is as follows • Blue area reduces Machinery back to orig cost • Yellow area reduces what remains of intercompany

gain

FA1 D. Retained Earnings, Parent $8K gain

– Gain now in RE

– We disallowed $10K, but let seller have $2K more income

• Net is 8K

g ,

FA1 Accumulated Depreciation $2K

FA1 Cr. Machinery $10K

51 – F2 Worksheet Entry – Second Year

• FA2 entry in 2ndyear same as 1st:

FA2 D. Accumulated Depreciation $2,000

FA2 C. Depreciation Expense $2,000

52 – Income Distribution Schedules – Second Year - #1

• The Income Distribution Schedules for 2ndyear would appear as follows:

Subsidiary Income Distribution

Internally generated net income $24,000

Adjusted income $24,000

NCI h 20%

NCI share 20%

(14)

53 – Income Distribution Schedules – Second Year - #2

Parent Income Distribution

I ll d i $50 000

Internally generated net income $50,000 80% of Subsidiary income of $24K 19,200 Gain realized through use of

machine sold to Subsidiary

2,000

Controlling Interest $71,200

Controlling Interest $71,200

54 – F1 Worksheet Entry – Third Year

• The FA1 entry in the third year, is as follows • Blue area reduces Machinery back to orig cost • Yellow area reduces what remains of

intercompany gain

A1 R i d E i P $6 000

intercompany gain

– Gain now in RE

– We disallowed $10K, but let seller have $4K more income

• Net is 6K

FA1 D. Retained Earnings, Parent 1/1/2002

$6,000

FA1 Accumulated Depreciation 4,000

FA1 Cr. Machinery $10,000

55 – Intercompany Construction of Depreciable Assets - Heading

Intercompany Construction of

Depreciable Assets

Depreciable Assets

56 – Intercompany Construction of Depreciable Asset - #1

• What if one member of consolidation

group constructs asset for affiliated client?

– Builder is selling depreciable asset to ClientBuilder is selling depreciable asset to Client – Do the same entries we just talked about

• This subject introduces new entries

dealing with the construction period.

(15)

57 – Intercompany Construction of Depreciable Asset - #2

• Builder and client are using accounts that

are appropriate for two unrelated parties

– Wrong account names are being usedg g

– Using account names used by contractor and client

• But, we are presenting the two Cos as if

they are 1 Co.

We have to change the names of the – We have to change the names of the

accounts to reflect 1Co building asset for itself

58 – Intercompany Construction of Depreciable Asset - Builder’s entries - #1

• Look at the entries made by P&S on their books

• S (builder) records cost of construction during 1styear on S’s books:

D. Construction in Progress $200,000

C. Payables $200,000

“Construction in Progress” is the name used by a

contractor “Asset Under Construction is the name used by

1 year on S s books:

contractor. Asset Under Construction is the name used by a Co building its own Asset

Remember, we are presenting P&S as if one Co.

59 – Intercompany Construction of Depreciable Asset - Builder’s entries - #1A

Builder’s Balance Sheet

Const In Prog $200K Payables $200K

`

60 – Intercompany Construction of Depreciable Asset – Builder’s Entries - #2

• The S (builder) records billings on S’s books:

D. Contracts Receivable $150,000

C. Billings on Construction in Progress $150,000

• The Billings account is a contra account that reduces the Construction in Progress account. • The Contracts Receivable is an Intercompany Account – One Co cannot owe money to itself.

(16)

61 – Intercompany Construction of Depreciable Asset - Builder’s entries - #2A

Builder’s Balance Sheet

Const In Prog $200K Payables $200K Billings -150K

$50K

`

$50K Contract Rec. 150K

62 – Intercompany Construction of Depreciable Asset - Client’s entries - #1

D Assets Under Construction $150 000

• P (client) also records billings on P’s books:

D. Assets Under Construction $150,000

C. Contracts Payable $150,000

“Asset Under Construction” is the correct name for Co building an asset for itself, but the Amount ($150K) is too small. “Contracts Payable” is an Intercompany Account.

63 – Intercompany Construction of Depreciable Asset - Client’s entries - #1A

Builder’s Balance Sheet

Const In Prog $200K Payables $200K Billings -150K

$50K

`

$50K Contract Rec. 150K

Client’s Balance Sheet

$ $

Asset Und Constr. $150K Contract Pay. $150K

64 – LT1 Entry - #1

• On WS want to eliminate Intercompany Accounts (A/R & A/P):

LT1 D. Contracts Payable $150,000

LT1 C. Contracts Receivable $150,000

(17)

65 – LT1 Entry - #1A

Builder’s Balance Sheet

Const In Prog $200K Payables $200K Billings -150K

$50K

`

$50K Contract Rec. 150K

Client’s Balance Sheet

$ $

Asset Und Constr. $150K Contract Pay. $150K

66 – LT2 Entry - #1

• Also want to eliminate Construction in Progress account & Billings account

• Add unbilled construction cost to Asset Under

LT2 D. Billings on Construction in Progress $150,000 LT2 Assets Under Construction 50,000

• Add unbilled construction cost to Asset Under Construction.

LT2 C. Construction in Progress $200,000

67 – LT2 Entry - #1A

Builder’s Balance Sheet

Const In Prog $200K Payables $200K Billings -150K

$50K

`

$50K Contract Rec. 150K

Client’s Balance Sheet

$ $

Asset Und Constr. $150K Contract Pay. $150K

Add To Ass Und Constr. 50K

$200K

68 – End Result of LT1 & LT2 Entries

• After LT1 & LT2 entries, left with:

$

– $200,000 balance in Assets Under Construction, and

(18)

69 – Consolidated Balance Sheet After LT1 & LT2

Consolidated Balance Sheet

Asset Under Construction $200K Payables $200K

`

70 – Builder’s Intercompany Profit

(NOT ON TEST☺)

• Builder might take intercompany profit (Percentage of Completion Method):

D. Construction in Progress $50K

C. Earned Income on Long-Term Contract $50K

71 – LT 3 Entry

• If so, eliminate Builder’s profit on WS:

LT3 D. Earned Income on Long-Term Contract $50K

LT3 C. Construction in Progress $50K

72 – Intercompany Lending - Heading

(19)

73 – LN1 Entry

• If there is intercompany borrowing? • Eliminate the Intercompany note:

LN1 D. Notes Payable $10,000

LN1 C. Notes Receivable $10,000

• Eliminate the Intercompany note:

74 – LNs Entry

• Eliminate interest receivable and payable:

LN2 D. Interest Payable $400

LN2 C. Interest Receivable $400

75 – LN1 Entry

• Eliminate interest income and expense:

LN3 D. Interest Income $400

References

Related documents

This paper was organized as the following structure: (a) the intro- duction of the new approach of the real-road simulation, combining the traffic and vehicle simulations; (b)

izbrojim njene krugove, svaka tadka mogla je biti ona podetna, svaki znak pridodat mno5tvu drugih znako- va mogao je biti onaj moj, ali ni5ta ne bi vredelo i da sam

Long-term: App user monetization will lead to significantly higher margins and growth rates, likely increasing the valuation levels of myTaste to be more in line with other

Exhibit 1 illustrates the total ending cost of this alternative for a partial cover of 50/50; $250 million purchased with forward contracts of DM3.2/$, and the $250 million

Thus, the aim of the current study was to examine pulmo- nary arterial PWV in COPD and establish its association with right ventricular remodelling with the hypothesis that: (1)

Debido a este éxito, además de hablar de la música y de los artistas en sí, la revista también dará a conocer los lugares donde está presente este estilo en el

Despite climate change posing various threats to the whole African continent, including Burkina Faso and its population, there are some opportunities that can be seized in order to

Stage 2 Child Care, which is available to families on welfare and with stable employment. Families may be eligible for Stage 2 Child Care for up to 24 months after they stop receiving