FAC3704 exam pack answers.

FAC3704 exam pack answers. FAC3704 - Group Financial Reporting. Analysis of owners’ equity of Rentco Limited Develop Limited 100% 60% - 70% 40% - 30% Total At Since NCI At acquisition Share capital Retained earnings Contingent liability Revaluation surplus Equity represented by goodwill - parent Consideration paid and NCI Since acquisition Retained earnings ( + 30 000) Current year Profit - 5 month period (() x 5/12) Purchase of additional shares Payment (8 000 x 13) Change in ownership Profit - 7 month period Profit (() x 7/12) Gain on bargain purchase - Manage Limited Profit - Manage Limited Dividend received from Manage Limited Dividends paid (30 000) (18 000) 430 000 105 933 1 015 933 98 5931 104 000 5 407 208 403 148 307 32 960 35 136 (8 000) (25 000) 32 000 140 000 (12 000) 20 000 180 000b - 180 000 258 000a 172 000c 352 000 394 373 (98 593) 295 780 (5 600) (2 400) (17 500) (7 500) 350 801 1 394 373 x 10/40 = 98 593 or () x10% = 98 593 QUESTION 6 (SUGGESTED SOLUTION) Part 1 BA LIMITED GROUP CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 JANUARY 2014 R Revenue (350 000 + 340 000) 690 000 Cost of sales (269 230 + 228 000)) (497 230) Gross profit 192 770 Other income 31 2301 Other expenses (70 463)2 Share of profit of associate 12 0963 Profit before tax 165 633 Income tax expense (43 637)4 PROFIT FOR THE YEAR 121 996 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 121 996 Total comprehensive income attributable to: Owners’ of the parent 83 206 Non-controlling interest (31 590b (C1) + 7 200(given)) 38 790 121 996 1 43 230 + ((20 000 x 55%)dividend) - 3 500((10 000 x 35%)dividend) - 8 000 (()intragroup profit) = 31 230 2 53 000 + 13 800 + 4 000((16 000/4)depreciation)) + 2 330(impairment) - 2 667(8 000/3) (depreciation)) = 70 463 3 36 000( ) - 2 000(10 000 x 25/125) + 560(2 000 x 28%) = 34 560 x 35% = 12 096a or refer to analysis(C2) 4 16 800 + (4 000 x 28%) + 747(2 667 x 28%) - 2 240(8 000 x 28%) = 43 637