Exam (elaborations)
FAC3764 Assignment 8 2023
- Institution
- University Of South Africa (Unisa)
This document contains the solution to FAC3764 Assignment 8 for 2023. using this document will ensure a 80% plus pass mark.
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FAC3764ASSIGNMENT 8
DUE ON 25 August 2023
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 following:
1. The initial investment in Hilton Ltd.
2. Kingsley Ltd's share of post-acquisition profits or losses of Hilton Ltd.
3. Any adjustments to the initial investment based on equity method accounting.
Let's calculate step by step:
1. Initial Investment: Kingsley Ltd acquired 40,500 ordinary shares in Hilton Ltd on 1 July 2021.
The total consideration paid was R239,500, which includes R115,700 in cash and a piece of
land fairly valued at R123,800.
Initial Investment = Cash Paid + Fair Value of Land Initial Investment = R115,700 + R123,800 Initial
Investment = R239,500
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