2023
CAS3701
CASE STUDY 4 – ASSESSMENT 17
DUE DATE: 29 SEPTEMBER 2023
NKULULEKO NDLOVU
, This is an individual assessment!
Case 4:
The purpose of the case study below is to assess your ability to solve problems and to think critically
while considering the integration of topics.
Due date: 29 September 2023
Goodwill calculation
Identification and explanation of the error:
Share Capital is incorrect, as new trainee incorrectly used the 100 000 ordinary shares instead of the
R200 000 (Total share capital of Solar Ltd). Non-controlling interests correctly calculated at 80% of
Solar Ltd's share capital.
Revaluation of land at acquisition: revaluation was incorrectly calculated.
The trainee incorrectly used the 28% instead of 22.40% (80% * 28%) to calculate the Deferred Tax on
remeasurement of land.
The trainee included the 80% non-controlling interest of the difference of fair value and carrying amount
in the total (100%), which is incorrect. 80% NCI were used twice by the trainee.
The correct revaluation surplus is R77 600 (R500 000 – R400 000) X 77.6%)
CAS3701
CASE STUDY 4 – ASSESSMENT 17
DUE DATE: 29 SEPTEMBER 2023
NKULULEKO NDLOVU
, This is an individual assessment!
Case 4:
The purpose of the case study below is to assess your ability to solve problems and to think critically
while considering the integration of topics.
Due date: 29 September 2023
Goodwill calculation
Identification and explanation of the error:
Share Capital is incorrect, as new trainee incorrectly used the 100 000 ordinary shares instead of the
R200 000 (Total share capital of Solar Ltd). Non-controlling interests correctly calculated at 80% of
Solar Ltd's share capital.
Revaluation of land at acquisition: revaluation was incorrectly calculated.
The trainee incorrectly used the 28% instead of 22.40% (80% * 28%) to calculate the Deferred Tax on
remeasurement of land.
The trainee included the 80% non-controlling interest of the difference of fair value and carrying amount
in the total (100%), which is incorrect. 80% NCI were used twice by the trainee.
The correct revaluation surplus is R77 600 (R500 000 – R400 000) X 77.6%)
