At 1 July 2010 the statement of financial position of Yeung a limited liability company, contained the
Question:
At 1 July 2010 the statement of financial position of Yeung a limited liability company, contained the following items:
During the year ended 30 June 2011 the following events took place:
(i) An error in calculating the inventory at 30 June 2003 was discovered. The effect of the error was a reduction in the inventory at that date from $30m to $24m.
(ii) On 1 July 2010 the company issued 200m ordinary shares, ranking equally with those already in issue, at $1.40 per share.
(iii) Some land held by the company as a noncurrent asset was sold for SlOOm. The land had originally cost $25m and was revalued to $85m in 2009, giving rise to the revaluation reserve of $60m shown above.
(iv) The company’s draft pre-tax profit for the year ended 30 June 2011 was $40m. In calculating this figure the opening inventory was taken as $30m, and $15ni was included as the profit on the sale of the land. (See items (i) and (iii) above.)
(v) Dividends totalling 2c per share were paid in the year on the enlarged capital.
Required: Prepare the company’s statement of changes in equity for the year ended 30 June 2011. [ACCA adapted]
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