ADDITIONAL INFORMATION:

1.Revaluation reserves

1.1The accountant incorrectly disclosed all the revaluation reserves from different sources as a single reserve. The opening balance of the revaluation reserves consist of the revaluation surplus on the land of R25 000 and a mark-to-market reserve relating to an investment measured at fair value through OCI of R40 000. There were no movements on these two reserves for the 2019reporting period.

1.2A Ltd subsequently measures land by applying a revaluation model, and revalued land to fair value at the start of the reporting period. Land is not depreciated. The following fair values apply to land:

1 January 20191 950 000

1 January 20201 880 000

1.3During the current reporting period, A Ltd recorded a fair value gain on the investment of R15 000.

2.Retained earnings

2.1The total comprehensive income as stated is before any necessary changes were made in respect of all of the additional information provided to you.

2.2During the current reporting period, it was discovered that the accountant forgot to account for depreciation on a machine. The machine was purchased on 30 June 2017 for R900 000 and should have beendepreciated using the straight-line method over 5 years to a residual value of R150 000.

The accountant tried to correct this error by posting a journal in the current period for the entire depreciation that should have been charged (correctly calculated) since 2017.

REQUIRED:

Prepare the corrected statement of changes in equity of A Ltd for the year ended 31 December 2020.

Comparative figures are required. A total column is not required.

ASSIGNMENT 3 A Ltd provides you with the following incomplete and incorrect) statement of changes in equity for the year ended 31 December 2020: Retained earnings 1 852 000 438 000 Share capital Revaluation reserves Balance - 1 January 2019 500 000 165 000 Total comprehensive income Dividends paid (75000) Balance - 1 January 2020 425 000 65 000 Total comprehensive income (55 000) Dividends paid (25 000) Balance - 31 December 2020 400 000 10 000 2 290 000 579 000 2 869 000 ASSIGNMENT 3 A Ltd provides you with the following incomplete and incorrect) statement of changes in equity for the year ended 31 December 2020: Retained earnings 1 852 000 438 000 Share capital Revaluation reserves Balance - 1 January 2019 500 000 165 000 Total comprehensive income Dividends paid (75000) Balance - 1 January 2020 425 000 65 000 Total comprehensive income (55 000) Dividends paid (25 000) Balance - 31 December 2020 400 000 10 000 2 290 000 579 000 2 869 000