PART B DUNE LTD GROUP CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER

Part b dune ltd group consolidated statement of

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PART B DUNE LTD GROUP CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 20.17 R Revenue (840 000 + 248 000 + 190 000 – 18 000(C1)) Cost of sales (504 000 + 149 000 + 85 500 – 18 000(C1) + 3 000(C1)) 1 260 000 (723 500) Gross profit Other income (28 800 + 6 500 - 5 000(interest) – 10 000(management fees) – 4 800(div) (6 000 x 80%) – 6 000(div)(10 000 x 60%) + 1 300 h (gain on bargain purchase)) Other expenses (88 000 + 35 000 + 45 000 – 10 000(management fees)) Finance charges (5 000 – 5 000) 536 500 10 800 (158 000) - Profit before tax Income tax expense (77 504 + 18 340 + 16 660 – 840(C1)) 389 300 (111 664) PROFIT FOR THE YEAR 277 636
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FAC3704/102 7 QUESTION 1 (SUGGESTED SOLUTION)(continued) Other comprehensive income: Items that will not be reclassified to profit or loss: Fair value adjustment on equity instruments, net of tax R 3 880 Other comprehensive income for the year, net of tax 3 880 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 281 516 Profit for the year attributable to: Owners’ of the parent Non-controlling interests (9 000 d + 17 136 j ) 251 500 26 136 277 636 Total comprehensive income for the year attributable to: Owners’ of the parent (281 516 – 26 912) Non-controlling interests (26 136 + 776) 254 604 26 912 281 516 PART C DUNE LTD GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 20.17 Share capital R Mark-to- market reserve R Retained earnings R Total R Non- control- ling interests R Total equity R Balance at 1 April 20.16 100 000 - 790 000 1 890 000 59 800 2 949 800 Changes in equity for 20.17 Acquisition of subsidiary Total comprehensive income for the year - - - 3 104 - 251 500 - 254 604 131 200 i 26 912 131 200 281 516 Profit for the year Other comprehensive income - fair value adjustment - - - 3 104 4 251 500 - 251 500 3 104 26 136 776 277 636 3 880 Dividends paid - - (6 400) (6 400) (5 200) 3 (11 600) Balance at 31 March 20.17 100 000 3 104 1 035 100 1 138 204 212 712 1 350 916 1 870 000 – 80 000 b = 790 000 or 870 000 + ((249 000 – 349 000) x 80%) = 790 000 2 79 800(J8) – 20 000(J9) = 59 800 c 3 4 000 k + 1 200 e = 5 200 4 3 880 x 80% = 3 104
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8 QUESTION 1 (SUGGESTED SOLUTION)(continued) PART D DUNE LTD GROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 20.17 ASSETS Non-current assets R Property, plant and equipment (464 296 + 370 110 + 380 595 + 55 412(C2)) Goodwill Investment in equity instruments 1 270 413 5 800 a 45 000 Total non-current assets 1 321 213 Current assets Bank, inventories and trade receivables (263 100 + 50 050 + 51 000 - 3 000(C1)) 361 150 Total current assets 361 150 Total assets 1 682 363 EQUITY AND LIABILITIES Equity attributable to owners’ of the parent Share capital Retained earnings Other components of equity (mark-to-market reserve) 100 000 1 035 100 3 104 Non-controlling interests (68 354 g + 144 098 l ) 1 138 204 212 712 m Total equity 1 350 916 Non-current liabilities Deferred tax (1 120(given) + 12 412(J5)(C3) – 840(J2)(C1)) 12 692 Total non-current liabilities 12 692 Current liabilities Trade and other payables (85 000 + 120 000 + 113 755) 318 755 Total current liabilities 318 755 Total liabilities 331 447 Total equity and liabilities 1 682 363 CALCULATIONS C1 Unrealised profit in closing inventories Closing inventories on hand at 31 March 20.17 (given) Unrealised profit in closing inventories (18 000 x 20 / 120 ) R 18 000 3 000 Tax effect on unrealised profit (3 000 x 28%) 840 C2 Revaluation of land Revaluation (given) Deferred tax (55 412 x 80% x 28%) R 55 412 (12 412) 43 000
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FAC3704/102 9 QUESTION 1 (SUGGESTED SOLUTION)(continued) C3 Profit for the year R Revenue Cost of sales Other income Other expenses
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