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FAC3703 EXAM PACK
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, November 2015Question 1
Part A
Recharge Ltd Group
Statement of profit or loss and other income for the year ended 30 June 2014
2014
R 9,34
R 9,40
Workings:
BEPS = BE BHEPS = BHE
BNS BNS
= 52 397 = 52 757
608 567
= R 9,34 = R 9,40
Total CY
1 July 2013 Opening balance 4 500 000 4 500 000
30 Nov 2013 Rights Issue (V) 840 000 7/12 490 000
W4) 5 340 000 4 990 000
0,01124
30 Nov 60 000 56 067
Rights Issue (NV) 5 400 000 5 046 067
2013 1 (W4) 1 500 000 4/12 500 000
6 900 000 5 546 067
March 2014 Issue (V) 750 000 1/12 62 500
7 650 000 5 608 567
1 June 2014 Issue (V) (W5)
(V) 2,80/3 = 840 000
Rights Issue: 4 500 000 = 900 000 shares
(NV) 0,20/3 = 60 000
Share options exercised: 1 000 000 shares x 75%
= 750 000 shares
,Employee benefits:
Salary : (380 500 x 9) + (380 500 x 1,085
x 3) = 3 424 500 + 1 141 503
= 4 566 003
Bonus OB = (420 650)
Bonus CB = 4 566 003 x 10% = 456 600 =
Bonus paid 407 500
Leave OB = (163 540)
Leave CB = R84 500 x 3.5 days
= 295 750
Share price increased by > 10%
= 2, 80 x 10% =
2,80 + 28c = 3,08
Basic earnings
Profit attributable to the parent 50 976 200
Acquisition of Sol Ltd (4 744 414 x 4/12 x 55%) 869 809
Employee benefits (-420 650 + 407 500) + 456 600 + (739 200)
295 750) 52 585 209
(187 500)
Preference dividend 52 397 709
Basic earnings
Basic headline earnings
Nett
Basic earnings 52 397 709
Loss on sale of machinery (65 000 x 55% x 25 740
72%) Impairment loss on equipment (150 000 x 59 400
55% x 72%) Impairment loss on goodwill (500 275 000
000 x 55%) 52 757 849
, PART B
Recharge Ltd
Notes to the financial statements for the year ended 30
June 2014
8. Operating segments
Reconciliation of segment information to entity financial
statements
Revenue
Total segment revenue 213 800 000
Intercompany revenue (38 070
Non-cash adjustments
Debtors 000)(19
Revenue per entity financial statements 156 074 000
Profit before tax for the period ( 656 000)
Total segment profit before tax
Unrealised profit in intersegment inventory 53 448 502
Unallocated head office (expenses)/ profit
Non-cash adjustments (162
Debtors 402) 2
Creditors 443 651
Profit before tax per statement of profit or loss and 4 887
OCI 302
55 729 751
(1) 2 855 248 x 65% = 1 855 911
(2) 2 855 248 x 35% = 999 337
(3) 1 855 911 x 5/105 = 88 377
(4) 999 337 x 8/108 = 74 025
(5) (88 377 + 74 025) x 28% = 23 201
(6) 35 250 421 + 18 198 081 = 53448
502
(7) 88 377 + 74 025 = 162 402
(8) 141 000 000 x 27% = 38 070 000
(9) 141 000 000 + 72 800 000 = 213
800 000
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