FAC3764 ASSIGNMENT 8 2ND SEMESTER 2023
QUESTION 1
(a) To calculate the carrying amount of the Investment in Associate that will be presented in the
consolidated statement of financial position of the Kingsley Ltd Group as at 31 March 2023, we
need to consider the relevant information provided.
According to the information given:
➢ Kingsley Ltd acquired 40,500 ordinary shares in Hilton Ltd on 1 July 2021.
➢ The total consideration for the acquisition was settled with cash amounting to R115,700
and a piece of land fairly valued at R123,800.
➢ On the acquisition date, the retained earnings of Hilton Ltd had a credit balance amounting
to R327,300.
➢ The identifiable assets and liabilities of Hilton Ltd were considered to be fairly valued and
equal to the carrying amounts except for land, which had a fair value of R180,500 and a
carrying amount of R222,000.
To calculate the carrying amount of the investment in Hilton Ltd, we need to determine the cost of
the investment and any adjustments for the fair value of the net identifiable assets acquired.
Cost of the Investment:
Cash paid for shares = R115,700
Adjustments for Fair Value of Net Identifiable Assets:
Fair value of land acquired = R180,500
QUESTION 1
(a) To calculate the carrying amount of the Investment in Associate that will be presented in the
consolidated statement of financial position of the Kingsley Ltd Group as at 31 March 2023, we
need to consider the relevant information provided.
According to the information given:
➢ Kingsley Ltd acquired 40,500 ordinary shares in Hilton Ltd on 1 July 2021.
➢ The total consideration for the acquisition was settled with cash amounting to R115,700
and a piece of land fairly valued at R123,800.
➢ On the acquisition date, the retained earnings of Hilton Ltd had a credit balance amounting
to R327,300.
➢ The identifiable assets and liabilities of Hilton Ltd were considered to be fairly valued and
equal to the carrying amounts except for land, which had a fair value of R180,500 and a
carrying amount of R222,000.
To calculate the carrying amount of the investment in Hilton Ltd, we need to determine the cost of
the investment and any adjustments for the fair value of the net identifiable assets acquired.
Cost of the Investment:
Cash paid for shares = R115,700
Adjustments for Fair Value of Net Identifiable Assets:
Fair value of land acquired = R180,500
