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The revaluation surplus in both companies arose on 31 October 2016 when the companies revalued their respective land. The NCI are measured at their proportionate

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The revaluation surplus in both companies arose on 31 October 2016 when the companies revalued their respective land. The NCI are measured at their proportionate share of the acquiree's identifiable assets. Financial Accounting 3B Individual Assignment Page 4 of 5 QUESTION 2 (40 marks) The following balances were extracted from the records of Green Ltd and its subsidiaries: TRIAL BALANCES AT 31 OCTOBER 2017 GREEN YELLOW ORANGE LTD LTD LTD R'000 R'000 R'000 Share capital 100 Revaluation surplus 1/11/2016 Deferred tax 1/11/2016 Asset replacement reserve Retained earnings 1/11/2016 Accumulated depreciation - Plant and equipment Net operating profit Long term liability Bank overdraft Accounts payable Shareholders for dividends 547.2 Land Investment in Yellow Ltd: Green Ltd purchased 60% of these shares in Yellow Ltd in 2014 for R68 800 when the only reserve in Yellow Ltd was retained earnings of R5 000. At acquisition, the fair value of the land was R10 000 above its carrying amount. All other assets and liabilities were fairly valued. The interest due by Yellow Ltd to Green Ltd had been paid by year end. Investment in Orange Ltd: Green Ltd purchased 80% of the shares in Orange Ltd on 1 January 2013 for R81 100 when Orange Ltd's retained earnings was R1 500. All assets and liabilities were fairly valued. An impairment in respect of the investment in Orange Ltd amounting to R6 800 was recognised at 31 October 2016. A reversal of the impairment amounting to R4 000 was recognised at 31 October 2017 There are no other components of other comprehensive income. The corporate tax rate of 28% and CGT inclusion rate is 50%. 0 0 Plant and equipment -cost Investment in subsidiaries - Shares in Yellow Ltd - Shares in Orange Ltd - 10% loan (Yellow) Inventories Accounts receivables Dividends receivables Cash Interest paid Transfer to asset replacement reserve Dividends declared Income tax expense 0 Required 2.1 2.2 ch Draft the analysis of equity for the subsidiaries of Green Ltd for the year ending 31 (20) October 2017 Prepare the consolidated statement of comprehensive income (with Pro forma (20) consolidation journal entries relating to comprehensive income only) of Green Ltd and its subsidiaries for the year ended 31 October 2017 in compliance with the requirements of the Companies Act and International Financial Reporting Standards. O 547.2 The revaluation surplus in both companies arose on 31 October 2016 when the companies revalued their respective land. The NCI are measured at their proportionate share of the acquiree's identifiable assets. Financial Accounting 3B Individual Assignment Page 4 of 5 QUESTION 2 (40 marks) The following balances were extracted from the records of Green Ltd and its subsidiaries: TRIAL BALANCES AT 31 OCTOBER 2017 GREEN YELLOW ORANGE LTD LTD LTD R'000 R'000 R'000 Share capital 100 Revaluation surplus 1/11/2016 Deferred tax 1/11/2016 Asset replacement reserve Retained earnings 1/11/2016 Accumulated depreciation - Plant and equipment Net operating profit Long term liability Bank overdraft Accounts payable Shareholders for dividends 547.2 Land Investment in Yellow Ltd: Green Ltd purchased 60% of these shares in Yellow Ltd in 2014 for R68 800 when the only reserve in Yellow Ltd was retained earnings of R5 000. At acquisition, the fair value of the land was R10 000 above its carrying amount. All other assets and liabilities were fairly valued. The interest due by Yellow Ltd to Green Ltd had been paid by year end. Investment in Orange Ltd: Green Ltd purchased 80% of the shares in Orange Ltd on 1 January 2013 for R81 100 when Orange Ltd's retained earnings was R1 500. All assets and liabilities were fairly valued. An impairment in respect of the investment in Orange Ltd amounting to R6 800 was recognised at 31 October 2016. A reversal of the impairment amounting to R4 000 was recognised at 31 October 2017 There are no other components of other comprehensive income. The corporate tax rate of 28% and CGT inclusion rate is 50%. 0 0 Plant and equipment -cost Investment in subsidiaries - Shares in Yellow Ltd - Shares in Orange Ltd - 10% loan (Yellow) Inventories Accounts receivables Dividends receivables Cash Interest paid Transfer to asset replacement reserve Dividends declared Income tax expense 0 Required 2.1 2.2 ch Draft the analysis of equity for the subsidiaries of Green Ltd for the year ending 31 (20) October 2017 Prepare the consolidated statement of comprehensive income (with Pro forma (20) consolidation journal entries relating to comprehensive income only) of Green Ltd and its subsidiaries for the year ended 31 October 2017 in compliance with the requirements of the Companies Act and International Financial Reporting Standards. O 547.2

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