FAC3704102 53 QUESTION 8 continued b BODIE LTD GROUP CONSOLIDATED STATEMENT OF

Fac3704102 53 question 8 continued b bodie ltd group

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FAC3704/102 53 QUESTION 8 (continued) b) BODIE LTD GROUP CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 20.17 R Gross profit (122 350 + 81 450) Other income (C1) Other expenses (22 500 – 800(J8) + 900(J10) + 527) Share of profit of associate Finance charges (10 000 – 10 000(J12)) 203 800 12 000 (23 127) 53 280 - Profit before tax Income tax expense (40 418 + 21 966 – 2 240 + 224 – 252) 245 953 (60 116) PROFIT FOR THE YEAR 185 937 Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME FOR THE YEAR 185 937 Total comprehensive income attributable to: Owners of the parent Non-controlling interests 169 086 16 751 185 937 CALCULATIONS C1 Other income R Other income (8 000 – 8 000(73 000 – 65 000)) Interest received (15 000 – 10 000) Dividends received (21 500 + 7 000 – 17 500(25 000 x 70%) – 4 000(10 000 x 40%)) - 5 000 7 000 12 000 c) BODIE LTD GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 28 FEBRUARY 20.17 Share capital R Retained earnings R Total R Non- controlling interests R Total equity R Balance at 1 March 20.16 Changes in equity for 20.17 Total comprehensive income for the year Profit for the year Dividends paid 250 000 - - 421 593 1 169 036 (50 000) 671 593 169 036 (50 000) 105 055 16 751 (7 500) 776 648 185 837 (57 500) Balance at 28 February 20.17 250 000 540 679 790 679 114 306 904 985 1 320 000 + 86 593 + 15 000 = 421 593
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54 QUESTION 8 (SUGGESTED SOLUTION)(continued) d) BODIE LTD GROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 20.17 Notes R ASSETS Non-current assets Property, plant and equipment (C2) Investment in associate (C4) 2 Loan to associate Other investment Goodwill (1 464 – 527) (C3) 1 Deferred tax (-2 520 + 504 + 252 + 2 240 – 224(800(C2) x 28%)) 721 100 96 280 50 000 20 000 937 252 Total non-current assets 888 569 Current assets Inventories (13 932 + 19 484) 33 416 Total current assets 33 416 Total assets 921 985 EQUITY AND LIABILITIES Equity attributable to owners’ of the parent Share capital Retained earnings 250 000 540 679 Non-controlling interests 790 679 114 306 Total equity 904 985 Current liabilities Trade and other payables (12 000 + 5 000) 17 000 Total current liabilities 17 000 Total liabilities 17 000 Total equity and liabilities 921 985 BODIE LTD GROUP NOTES FOR THE YEAR ENDED 28 FEBRUARY 20.17 1. Goodwill R Carrying amount beginning of year 1 464 Gross carrying amount Accumulated impairment losses 1 464 - Impairment of goodwill (527) Carrying amount end of year 937 Gross carrying amount Accumulated impairment losses 1 464 (527)
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FAC3704/102 55 QUESTION 8 (SUGGESTED SOLUTION)(continued) 2. Investment in associate Bodie Ltd has a 40% interest in Young Ltd, a listed company. Bodie Ltd uses the equity method to measure their investments in associates. *The principle place of business and the nature of the relationship with Young Ltd is not available. 2.1 Summary of the financial information of Young Ltd as at 28 February 20.17 are as follows: R Non-current assets 193 000 Current assets 97 700 Non-current liabilities (50 000) Current liabilities - Net asset value as at 28 February 20.17 240 700 Profit for the year (190 000 – 5 000 – 51 800) 133 200 Other comprehensive income - Total comprehensive income 133 200 2.2 Reconciliation between the summarised financial information and the carrying amount of the interest in the associate R Net asset value as at 28 February 20.17 as per summarised financial information 240 700
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