Question
On the 1/1/2003, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5 695 000. At
On the 1/1/2003, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5 695 000. At acquisition, PA had retained earnings of R 1 400 000. When preparing the J Group's consolidated Financial statement for the year end date of 31/12/2003, accounts at the group entity are working with the following information: in the 2003 financial year, Entity PA made profit after tax of R 1 230 000, in the 2003 Financial year, PA paid a dividend totaling R45 000 to its shareholders, at the end of the 2003 financial year, the group's investment in PA is found to have impaired by R94 000, based on this information, calculate the group's investment in associate figure, in its consolidated financial statements dated 31/12/2003
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