Question 4 (25)

1. Adultina (Pty) Ltd.s reporting date is 30 November.

On the 1^st of December 2015, Adultina (Pty) Ltd granted one hundred (100) share option for each of the 500 employees it had. The grant was premised on the condition that the employee would work for the Adultina (Pty) Ltd for the three years to 30 November 2018. The fair value of each share option was P15 at the date of the grant.

Up to 30 November 2016, 20 employees left Adultina (Pty) Ltd, and it was then estimated that a total of 20% of the 500 employees were likely to leave the company in the 3-years time.

By 30 November 2017, 20 more employees had also left, and Adultina (Pty) Ltd estimated 15 per cent of the 500 company employees will leave during the 3 years time.

On the 30^th of November 2018, another number of 10 more employees had left.

In accordance with the share-based payment scheme, prepare the remuneration expense to be realised in each of the 3 years. (15)

2. Tsoona Co. bought 30% shareholding on 1^st January 2018 in Kabelo Co. at a cost of P50 000.

During the year to 31^st December 2018 Kabelo Co. made a profit before tax of P102 000 and the taxation charge on the years profits was P28 000. A dividend of P30 000 was paid on 31^st December out of profit for the year.

Required

Prepare extracts for the consolidated statement of profit or loss and consolidated statement of financial position together with the workings in accordance with IAS 28 Investments In Associates And Joint Venture (10 Marks)