$19$:$18$

$45$

A$7-$CFR$-15\_$IA$03.$pdf

Question Two

$(25$ marks$)$

Sugar $($Pty$)$ Ltd acquired $60\%$ of the issued share capital of Salt Ltd on $1$ November $2022.$ At that date Salt Ltd had share capital of P$8,000,000$ and retained earnings of P$32,550,000.$

The summarised statements of financial position of Sugar $($Pty$)$ Ltd and Salt Ltd as at $31$ October $2023$ are set out below.

Statements of financial position as at $31$ October $2023$

Non$-$current assets

Property, plant and equipment

Investment in Salt Ltd

Current assets

Inventory

Accounts receivable

Cash at bank and in hand

Total assets

Equity and liabilities

Equity

Share capital

Retained earnings

$152,554$

${58\mathrm{.}137}_{?}$

Non$-$current liabilities

Long term loan

Current liabilities

Trade accounts payable other payables and tax

Total liabilities

Total equity and liabilities

$56,{485}_{?}$

$152,554$

$12,707$

$58,{137}_{?}$

Page $3$ of $4$

Additional information:

On $10$ October $2023$ Salt Ltd sold goods which had cost P$200,000$ to Sugar $($Pty$)$ Ltd for P$350,000.$ None of these goods remained in the inventories of Sugar $($Pty$)$ Ltd at the year end.

At $31$ October $2023$ Sugar $($Pty$)$ Ltd had not yet paid Salt Ltd for these goods. The outstanding balance of P$350,000$ is included in the current assets of Salt Ltd and the current liabilities of Sugar $($Pty$)$ Ltd$.$

Goodwill relating to the purchase of Salt Ltd was reviewed on $31$ October $2023$ and was found not to be impaired.

Non$-$controlling interest is measured as the proportionate share of the fair value of Salt Ltd$.\text{'}$s net assets.

Required.

Prepare the consolidated statement of financial position of Sugar $($Pty$)$ Ltd and its subsidiary as at $31$ October $2023.$

$[25$ marks$]$