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Fox Limited is a manufacturer of specialised components used in the aircraft industry. The company has been very profitable since its inception fifteen years ago.
Fox Limited is a manufacturer of specialised components used in the aircraft industry. The company has been very profitable since its inception fifteen years ago. The company has a 31 March year end. The financial director Logan Wolff has approached you for your assistance in preparation of the financial statements. An extract from the Statement of changes in equity for the year ended 31 March 2018 is as follows: An extract from the Statement of comprehensive income for the year ending 31 March 2019 is presented below: The following transactions occurred during the year: Ordinary share capital The ordinary share capital issued at 1 April 2018 consisted of 1000000 shares of no par value. The authorised share capital has remained unchanged at 5000000 since incorporation. On 1 July 2018,200000 additional ordinary shares were issued at R2, 75. The share issue costs for this issue amounted to R25 000, these expenses are non-deductible for tax purposes. On 31 December 2018 , the directors authorised a capitalisation issue of 1 share for every 4 shares held at the current market price of R2. The management has decided to buy back 10000 shares from a dissatisfied customer at a price of R3. The transaction occurred on 31 Jan 2019. Money was electronically transferred to the account of the shareholder on the same day. An ordinary dividend of R0.50 per share was declared on 31 March 2019 to the shareholders whose names were found in the shareholders' register as on 31 March 2019. Preference share capital The preference shares are not redeemable. The preference share capital issued on 1 April 2018 consisted of 200000 shares of no par value. All the Authorised preference share capital has been issued. The preference dividends for the year at the coupon rate were paid on 31 March 2019. Required 5.1 Prepare the Statement of changes in Equity for the year ended 31 March 2019 in accordance with International Financial Reporting Standards.(13 marks) 5.2 Prepare the share capital note for inclusion in Fox Limited's notes to the financial statements for the year ended 31 March 2019 in accordance with international financial reporting standards
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