Required:

Q.1.1

Prepare the pro‐forma consolidation journal entries of the Haleb Ltd Group for the financial year ended 31 December 2019. 

Q.1.2

Prepare the consolidated statement of changes in equity for the Haleb Ltd Group for the year ended 31 December 2019. 

Your answer should comply with International financial reporting standards (IFRS).

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The following are the abridged trial balances of Haleb Ltd and Serena Ltd for the financial year ended 31 December 2019: Debits Property, plant and equipment Investment in Serena Ltd (390 000 shares) Inventory Other assets Credits Ordinary share capital Retained earnings: 1 January 2019 Other liabilities Profit after tax Haleb Ltd R 1500 000 800 000 600 000 600 000 3 500 000 800 000 800 000 1 000 000 900 000 3 500 000 Serena Ltd R 1 000 000 200 000 100 000 1 300 000 600 000 500 000 100 000 100 000 1 300 000