QUESTION TWO(30 MARKS)

Question

Croc Ltd is a subsidiary of Able with non-controlling interest of 15%. Its parent company is Able Ltd. Able Ltd also controls 65% of Rovaldo Ltd. Rovaldo Ltd controls 75% of Apple Ltd. Able ltd controls 35% of Vodacom and has significant influence. Croc Ltd controls 50% of white’s shareholdings using equity method for joint ventures.

Amounts are in millions of Rands

Required: fill in the table (10)

Calculate the amount in the group statement in terms of

1) Land

2) Profit

3) Non-controlling interest

Equity holding of the parent (20)

Amounts are in millions of Rands

Required: fill in the table                                                                                                                           (10)

Calculate the amount in the group statement in terms of

1)  Land

2) Profit

3) Non-controlling interest

Equity holding of the parent                                                                                                       (20)

GPT 3.5 · Answer

1) Land:
- Land of Croc Ltd: The amount will be reported in the group statement as 100.
- Land of Rovaldo Ltd: The amount will be reported in the group statement as 0, as Rovaldo Ltd is not a majority-owned subsidiary.
- Land of Apple Ltd: The amount will be reported in the group statement as 0, as Apple Ltd is not a majority-owned subsidiary.
- Land of Vodacom: The amount will be reported in the group statement as 0, as Vodacom is an associate and not consolidated.

2) Profit:
- Profit of Croc Ltd: The amount will be reported in the group statement as 50.
- Profit of Rovaldo Ltd: The amount will be reported in the group statement as 0, as Rovaldo Ltd is not a majority-owned subsidiary.
- Profit of Apple Ltd: The amount will be reported in the group statement as 0, as Apple Ltd is not a majority-owned subsidiary.
- Profit of Vodacom: The amount will be reported in the group statement as 0, as Vodacom is an associate and not consolidated.
- Profit of joint ventures: The amount will be reported in the group statement as 25 (50% of White's shareholdings controlled by Croc Ltd).

3) Non-controlling interest:
- Non-controlling interest in Croc Ltd: The amount will be reported in the group statement as 15 (15% of Croc Ltd's equity).
- Non-controlling interest in Rovaldo Ltd: The amount will be reported in the group statement as 0, as Rovaldo Ltd is not consolidated.
- Non-controlling interest in Apple Ltd: The amount will be reported in the group statement as 0, as Apple Ltd is not consolidated.
- Non-controlling interest in Vodacom: The amount will be reported in the group statement as 0, as Vodacom is an associate and not consolidated.