PART A
WORKINGS
Working 1: Analysis of Ordinary Owner's Equity of Lesley Ltd
Acquisition date: 1 October 2023 | Group ownership: 60% | NCI: 40%
Details Total (R) Julandi Ltd (60%) (R) NCI (40%) (R)
At acquisition (1
AT since
October 2023)
Share capital -
3 160 000 1 896 000 1 264 000
ordinary shares
Retained
440 000 264 000 176 000
earnings
Revaluation
672 000 403 200 268 800
surplus
Total equity at
4 272 000 2 563 200 1 708 800
acquisition
Consideration
4 310 000
paid
Goodwill
1 746 800
(Ordinary shares)
Since
acquisition to
beginning of
year (1 July
2025)
, Retained
2 668 000 1 600 800 1 067 200
earnings (1 )
Revaluation
- - -
surplus (2 )
Total since
acquisition to
2 668 000 1 600 800 1 067 200
beginning of
year
Current year
movements (1
July 2025 – 30
June 2026)
Profit for the year
1 376 000 825 600 550 400
(3 )
Revaluation
728 000 436 800 291 200
surplus (4 )
Calculations for W1:
(1 ) Lesley Opening RE (3 220 000) – Acq RE (440 000) = 2 780 000. Less Preference Dividends in
arrears for 21 months (64 000 × 21/12 = 112 000) = 2 668 000.
(2 ) Revaluation is every 3 years. The next revaluation is in the current year, so there is no movement in
the prior post-acquisition period.
(3 ) Lesley Current Year Profit (1 440 000) – Preference Dividends for 12 months (64 000) = 1 376 000.
(4 ) Lesley Closing Revaluation Surplus (1 400 000) – Acq Revaluation Surplus (672 000) = 728 000.
WORKINGS
Working 1: Analysis of Ordinary Owner's Equity of Lesley Ltd
Acquisition date: 1 October 2023 | Group ownership: 60% | NCI: 40%
Details Total (R) Julandi Ltd (60%) (R) NCI (40%) (R)
At acquisition (1
AT since
October 2023)
Share capital -
3 160 000 1 896 000 1 264 000
ordinary shares
Retained
440 000 264 000 176 000
earnings
Revaluation
672 000 403 200 268 800
surplus
Total equity at
4 272 000 2 563 200 1 708 800
acquisition
Consideration
4 310 000
paid
Goodwill
1 746 800
(Ordinary shares)
Since
acquisition to
beginning of
year (1 July
2025)
, Retained
2 668 000 1 600 800 1 067 200
earnings (1 )
Revaluation
- - -
surplus (2 )
Total since
acquisition to
2 668 000 1 600 800 1 067 200
beginning of
year
Current year
movements (1
July 2025 – 30
June 2026)
Profit for the year
1 376 000 825 600 550 400
(3 )
Revaluation
728 000 436 800 291 200
surplus (4 )
Calculations for W1:
(1 ) Lesley Opening RE (3 220 000) – Acq RE (440 000) = 2 780 000. Less Preference Dividends in
arrears for 21 months (64 000 × 21/12 = 112 000) = 2 668 000.
(2 ) Revaluation is every 3 years. The next revaluation is in the current year, so there is no movement in
the prior post-acquisition period.
(3 ) Lesley Current Year Profit (1 440 000) – Preference Dividends for 12 months (64 000) = 1 376 000.
(4 ) Lesley Closing Revaluation Surplus (1 400 000) – Acq Revaluation Surplus (672 000) = 728 000.
