QUESTION 1 (35 marks) SSA Foods Ltd is a public company listed on the JSE Limited in South Africa. The company is Africa's leading fast-food restaurant franchisor. To expand their business, SSA Foods Ltd purchased an 85\% shareholding in FlameGrilled Ltd on 1 July 2021. Each share entitles the shareholder to one vote. FlameGrilled Ltd is a franchised fastfood restaurant specialising in flamed-grilled meals. FlameGrilled Ltd's restaurants are located all over South Africa. From 1 July 2021, SSA Foods Ltd had control of FlameGrilled Ltd in accordance with IFRS 10 Consolidated Financial Statements. Both companies have a 30 June year-end. As of 30 June 2022 , the following trial balances are presented to you (you may assume that the amounts are correct, except where otherwise indicated in the information below) SSA Foods FlameGrilled Debits Ltd Ltd Other Investments R5919679672021R1436994 Equipment Investment in FlameGrilled Ltd Inventory 583000 Trade Receivables 254481241976 Cash and cash equivalents Cost of sales Other expenses Income tax expense 667933 Finance costs Dividend paid (paid on 30 May 2022) \begin{tabular}{rr} 81000 & 35000 \\ \hline 12250516 & 3191508 \\ \hline \end{tabular} Credits Issued ordinary share capital Retained earnings 1 July 2021 Long-term loan Deferred tax Trade payables Revenue \begin{tabular}{rr} 500000 & 250000 \\ 5255028 & 345871 \\ & 546880 \\ 321864 & 132479 \\ 479877 & 428517 \\ 5657871 & 1487761 \\ 35876 & \\ \hline 12250516 & 3191508 \\ \hline \end{tabular} Investment in FlameGrilled Ltd: - The investment was acquired on 1 July 2021 , and all the assets and liabilities of FlameGrilled Ltd were deemed to be fairly valued on the acquisition date, except for the following: Braai equipment with a carrying amount of R761626 had a fair value of R850 000 on 1 July 2021 . The equipment had a useful life of 3.5 years remaining on this date. No additional assets, liabilities, or contingent liabilities were identified at the acquisition date. - The following intragroup transactions took place within the group during the year ended 30 June 2022 : From 1 July 2021, SSA Foods Ltd purchased braai sauce from FlameGrilled Ltd at a cost plus 33,33\%. Total intragroup sales recorded by FlameGrilled Ltd for the 2022 financial year amounted to R120 000 . Included in the closing inventory of SSA Foods Ltd on 30 June 2022 was inventory amounting to R89 657 purchased from FlameGrilled Ltd. - SSA Foods Ltd accounts for investments in subsidiaries at cost in its separate financial statements. - It is the accounting policy of SSA Foods Ltd to account for property, plant, and equipment using the cost model in accordance with IAS 16 Property, Plant, and Equipment. - The SSA Foods Ltd Group provides depreciation on property, plant, and equipment items using the straight-line method over the asset's remaining useful life. - There was no change in the issued ordinary share capital of FlameGrilled Ltd during the 2022 financial year. - You may assume that all income tax-related entries have been correctly accounted for in the separate accounting records of SSA Foods Ltd. - SSA Foods Ltd has elected to measure the non-controlling interests of FlameGrilled Ltd at fair value on the acquisition date. The fair value of the noncontrolling interests of FlameGrilled Ltd amounted to R105 000 on 1 July 2021. - Assume a normal income tax rate of 28% and a capital gains tax inclusion rate of 80%. Ignore Value Added Tax (VAT) and Dividend Tax. - None of the companies are considered a share trader for income tax purposes or an investment entity as defined in IFRS 10 Consolidated Financial Statements. REQUIRED: Using the Excel template provided together with your knowledge on Excel formulas and functions, prepare the Consolidated Statement of Financial Position of the SSA Foods Ltd Group as at 30 June 2022. Comparative amounts are not required. You are required to complete the Excel template to the best of your ability based on the information and instructions provided, and you need to make use of Excel's functions as far as possible. (Calculations \& use of Excel functions 30 marks) (Presentation 5 marks) QUESTION 1 (35 marks) SSA Foods Ltd is a public company listed on the JSE Limited in South Africa. The company is Africa's leading fast-food restaurant franchisor. To expand their business, SSA Foods Ltd purchased an 85\% shareholding in FlameGrilled Ltd on 1 July 2021. Each share entitles the shareholder to one vote. FlameGrilled Ltd is a franchised fastfood restaurant specialising in flamed-grilled meals. FlameGrilled Ltd's restaurants are located all over South Africa. From 1 July 2021, SSA Foods Ltd had control of FlameGrilled Ltd in accordance with IFRS 10 Consolidated Financial Statements. Both companies have a 30 June year-end. As of 30 June 2022 , the following trial balances are presented to you (you may assume that the amounts are correct, except where otherwise indicated in the information below) SSA Foods FlameGrilled Debits Ltd Ltd Other Investments R5919679672021R1436994 Equipment Investment in FlameGrilled Ltd Inventory 583000 Trade Receivables 254481241976 Cash and cash equivalents Cost of sales Other expenses Income tax expense 667933 Finance costs Dividend paid (paid on 30 May 2022) \begin{tabular}{rr} 81000 & 35000 \\ \hline 12250516 & 3191508 \\ \hline \end{tabular} Credits Issued ordinary share capital Retained earnings 1 July 2021 Long-term loan Deferred tax Trade payables Revenue \begin{tabular}{rr} 500000 & 250000 \\ 5255028 & 345871 \\ & 546880 \\ 321864 & 132479 \\ 479877 & 428517 \\ 5657871 & 1487761 \\ 35876 & \\ \hline 12250516 & 3191508 \\ \hline \end{tabular} Investment in FlameGrilled Ltd: - The investment was acquired on 1 July 2021 , and all the assets and liabilities of FlameGrilled Ltd were deemed to be fairly valued on the acquisition date, except for the following: Braai equipment with a carrying amount of R761626 had a fair value of R850 000 on 1 July 2021 . The equipment had a useful life of 3.5 years remaining on this date. No additional assets, liabilities, or contingent liabilities were identified at the acquisition date. - The following intragroup transactions took place within the group during the year ended 30 June 2022 : From 1 July 2021, SSA Foods Ltd purchased braai sauce from FlameGrilled Ltd at a cost plus 33,33\%. Total intragroup sales recorded by FlameGrilled Ltd for the 2022 financial year amounted to R120 000 . Included in the closing inventory of SSA Foods Ltd on 30 June 2022 was inventory amounting to R89 657 purchased from FlameGrilled Ltd. - SSA Foods Ltd accounts for investments in subsidiaries at cost in its separate financial statements. - It is the accounting policy of SSA Foods Ltd to account for property, plant, and equipment using the cost model in accordance with IAS 16 Property, Plant, and Equipment. - The SSA Foods Ltd Group provides depreciation on property, plant, and equipment items using the straight-line method over the asset's remaining useful life. - There was no change in the issued ordinary share capital of FlameGrilled Ltd during the 2022 financial year. - You may assume that all income tax-related entries have been correctly accounted for in the separate accounting records of SSA Foods Ltd. - SSA Foods Ltd has elected to measure the non-controlling interests of FlameGrilled Ltd at fair value on the acquisition date. The fair value of the noncontrolling interests of FlameGrilled Ltd amounted to R105 000 on 1 July 2021. - Assume a normal income tax rate of 28% and a capital gains tax inclusion rate of 80%. Ignore Value Added Tax (VAT) and Dividend Tax. - None of the companies are considered a share trader for income tax purposes or an investment entity as defined in IFRS 10 Consolidated Financial Statements. REQUIRED: Using the Excel template provided together with your knowledge on Excel formulas and functions, prepare the Consolidated Statement of Financial Position of the SSA Foods Ltd Group as at 30 June 2022. Comparative amounts are not required. You are required to complete the Excel template to the best of your ability based on the information and instructions provided, and you need to make use of Excel's functions as far as possible. (Calculations \& use of Excel functions 30 marks) (Presentation 5 marks)