The revaluation was not recorded in the separate financial records of Cox Ltd 2

The revaluation was not recorded in the separate

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amount. The revaluation was not recorded in the separate financial records of Cox Ltd. 2. Bodie Ltd sold equipment with a carrying amount of R65 000 to Cox Ltd on 1 March 20.16 for R73 000. It is the policy of the group to write off depreciation on equipment at 10% per year on the cost price. 3. Bodie Ltd acquired a 40% interest in an associate, Young Ltd, a listed company, on 1 March 20.12. Since this date, Bodie Ltd has exercised significant influence over the financial and operating policy decisions of Young Ltd. The retained earnings on the date of acquisition of Young Ltd amounted to R30 000. The fair values of all the identifiable assets and liabilities were considered to be equal to the carrying amounts thereof. The market value of Young Ltd’s shares at 28 February 20.17 was R6,50 per share. 4. The loans from Bodie Ltd to Cox Ltd and Young Ltd were made on 1 March 20.16 and are repayable in full on 1 March 20.20. The loans bear interest at 10% per annum. Interest paid on these loans by Cox Ltd and Young Ltd for the year is included in ‘finance charges’ and interest received by Bodie Ltd is included in ‘interest income’.
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50 QUESTION 8 (continued) 5. Goodwill was considered to be impaired by R527 as at 28 February 20.17. 6. Bodie Ltd measures its investments in subsidiaries and associates in its separate accounting records at cost price in accordance with IAS 27, Separate Financial Statements . 7. The Bodie Ltd Group accounts for associates using the equity method in accordance with IAS 28, Investments in Associates and Joint Ventures. 8. The SA normal tax rate is 28% and capital gains tax is calculated at 80% thereof. You may assume that both the tax rates have remained unchanged since 1 March 20.12. 9. Each share carries one vote and the issued share capital of all the entities in the group remained unchanged since 1 March 20.12. REQUIRED: PART A: The Bodie Ltd Group measures non-controlling interests in an acquiree at their proportionate share of the net assets. a) Prepare all the pro-forma consolidation journal entries for the Bodie Ltd Group for the year ended 28 February 20.17. b) Prepare the consolidated statement of profit or loss and other comprehensive income of the Bodie Ltd Group for the year ended 28 February 20.17. c) Prepare the consolidated statement of changes in equity of the Bodie Ltd Group for the year ended 28 February 20.17. d) Prepare the consolidated statement of financial position of the Bodie Ltd Group as at 28 February 20.17. The following notes are required: (i) Goodwill (ii) Investment in associate PART B: The Bodie Ltd Group measures non-controlling interests in an acquiree at their fair value. Cox Ltd’s shares had a market value of R2,28 per share on 1 March 20.14. a) Prepare only the asset section of the consolidated statement of financial position of the Bodie Ltd Group as at 28 February 20.17.
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