You may ignore VAT Lindokuhle Limited (hereafter "Lindokuhle") has a controlling interest in McKenzie Limited (hereafter "McKenzie"). Both companies operate in the retail industry and Lindokuhle's long term strategy is to have a market share in the industry through both organic and competitor acquisitions and mergers. Companies within the Lindokuhle group have a 30 September financial year end. McKenzie was acquired on 1 October 2017 and R 4000000 was paid in cash for the 3150000 shares. At that date, the net assets of McKenzie consisted of the following before any IFRS 3, Business Combinations adjustments: All identifiable assets acquired, and liabilities assumed were determined to be at their at acquisition date fair values except for: 1. Land that had a carrying amount of R855000 which had a fair value of R930000. 2. Equipment that was purchased on 1 October 2015 for R650000 which had a fair value of R450000. The consolidation joumal entries processed by the newly appointed group accountant for the 2022 financial year were as follows: Lindokuhle elected to measure the non-controlling interest in McKenzie at its proportionate share of the net assets acquired at acquisition date. The retained earnings balance of McKenzie on 1 October 2021 was R1200000 and the profit for the financial year ending 30 September 2022 for MacKenzie was R400 000. Intragroup transactions were as follows: 1. Intragroup sales of inventories between the two companies amounted to R670000. 2. McKenzie sold machinery with a carrying amount of R 188000 to Lindokuhle for R 225000 on 1 January 2021. At that date, the remaining useful life of the machinery was assessed as 3,5 years. The machinery is classified as Property, plant and equipment for both companies. Additional information - Lindokuhle elected to measure its investments in equity instruments at cost price in terms of IAS 27.10(a) - Round all rand amounts to the nearest rand. - There has been no movement in the stated capital accounts of all entities within the group since their acquisition dates. - Equipment is depreciated over an estimated useful life of 8 years to a nil residual value. - All estimates remained unchanged unless otherwise stated. You may ignore VAT Lindokuhle Limited (hereafter "Lindokuhle") has a controlling interest in McKenzie Limited (hereafter "McKenzie"). Both companies operate in the retail industry and Lindokuhle's long term strategy is to have a market share in the industry through both organic and competitor acquisitions and mergers. Companies within the Lindokuhle group have a 30 September financial year end. McKenzie was acquired on 1 October 2017 and R 4000000 was paid in cash for the 3150000 shares. At that date, the net assets of McKenzie consisted of the following before any IFRS 3, Business Combinations adjustments: All identifiable assets acquired, and liabilities assumed were determined to be at their at acquisition date fair values except for: 1. Land that had a carrying amount of R855000 which had a fair value of R930000. 2. Equipment that was purchased on 1 October 2015 for R650000 which had a fair value of R450000. The consolidation joumal entries processed by the newly appointed group accountant for the 2022 financial year were as follows: Lindokuhle elected to measure the non-controlling interest in McKenzie at its proportionate share of the net assets acquired at acquisition date. The retained earnings balance of McKenzie on 1 October 2021 was R1200000 and the profit for the financial year ending 30 September 2022 for MacKenzie was R400 000. Intragroup transactions were as follows: 1. Intragroup sales of inventories between the two companies amounted to R670000. 2. McKenzie sold machinery with a carrying amount of R 188000 to Lindokuhle for R 225000 on 1 January 2021. At that date, the remaining useful life of the machinery was assessed as 3,5 years. The machinery is classified as Property, plant and equipment for both companies. Additional information - Lindokuhle elected to measure its investments in equity instruments at cost price in terms of IAS 27.10(a) - Round all rand amounts to the nearest rand. - There has been no movement in the stated capital accounts of all entities within the group since their acquisition dates. - Equipment is depreciated over an estimated useful life of 8 years to a nil residual value. - All estimates remained unchanged unless otherwise stated