Sphinx Co case
(a)Adjusted profit for the year
ended 31 Dec 20x5 $'000 (b) Statement of changes in equity of the y
Draft profit for the year 166450
Depreciation- building -8500 Balance at 1 Jan 20x5
Depreciation- plant and equipment -31320 Right issue
Foreign exchange gain 2000 Revaluation surplus
Accrued interest on loan note -1050 Profit for the year
Income tax expense -32500 Annual transfer
Dividend paid
Adjusted balance /profit 95080
Balance at 31 Dec 20x
Working (1) Non-current assets
(c) Statement of financial position
as at 31Dec 20x5 Cost at 1 Jan 20x5
$'000 Accumulated Depreciation b/d
Assets Carrying value b/d
Revaluation surplus
Non-current assets Revalued amount
Property,plant and equipment 418980 Depreciation for the year
Current assets Carrying amount c/d
Inventory 115000
Trade receivables 130000
245000 Excess Depreciation
Total assets 663980 Annual Transfer
Equity and liabilities Before revaluation
Equity After revaluation
Share Capital 120000 Excess Depreciation
Share Premium 5000
Retained earnings 258730 Deferred tax on revalu
Revaluation surplus 106500
Total equity 490230
Non-current liabilities
7% loan notes 30000 Revaluation surplus
Deferred tax 28000 Retained earnings
58000
Current liabilities Working (2) Foreign currency exchange
Trade and other payable 69550
Bank overdraft 16200
Cure tax payable 30000 31 October 20x5
115750 31 Dec 20x5
Total liability 173750 Exchange gain
Total equity and liabilities 663980
Working (3) Interest
Accrued interest
Working (4) Income tax expense
Current tax payable
Under provision
Income tax expense
Working (5) Right issue
Before right
Right
After right
Bank
Share capital
Share premium
t of changes in equity of the year ended 31 Dec 20x5
Share Capital Share premium Revaluation reserve Retained earnings Total
100000 0 0 158150 258150
20000 5000 25000
112000 112000
95080 95080
-5500 5500 0
0 0
120000 5000 106500 258730 490230
Non-current assets
Land Building Plant and equipment
$'000 $'000 $'000
50000 150000 320000
Depreciation b/d -90000 -111200
50000 60000 208800
30000 110000
80000 170000
for the year -8500 -31320
80000 161500 177480
5500 Revaluation surplus/remaining life
$'000
3000
8500
5500
28000 Dr Revalution surplus
Cr Deferred tax liability
Dr$'000 Cr $'000
5500
5500
Foreign currency exchange
Dinars
Dinar '000 Rate ($-dianr) $'000
40000 4 10000
40000 5 8000
2000 Dr Payable
Cr Exchange gain income
$'000
1050 Dr interest exp
Cr Accured exp/other payable
ncome tax expense
$'000
30000
2500
32500
Right issue
Share No of shares('000) Share Capital $'000
5 100000 100000
1 20000 20000
6 120000 120000
Dr$'000 Cr $'000
25000
20000
5000
(a) Adjusted profit for the year ended 31M (b) Statement of financial position at 31 March 20
$'000
Draft profit 30000 Assets
Interest /Finance cost -3023.36 Non-current assets
Depreciation; Property,plant and equipment
Freehold property -3200
Plant and equipment -6600 Current assets
Receivable fraud -250 Trade receivables
Income tax -2600 Other current assets
Profit for the year 14326.64 Total assets
Equity and liability
Equity
Share capital
Other component of equity
Revaluation surplus
Retained earnings
Total equity
Non-current liability
6% convertible loan note
Deferred tax liability
Current liability
Tax payable
Total liability
Total equity and liability
(C) Diluted EPS
Total earning
Total no of share
Share increase
Interest saving after tax
Diluted EPS
ition at 31 March 20 Working (1) Convertible loan note
$'000 $'000
Principal 40000
Interest 2400
102000
$'000 DF 8% PV$'000
Principal 40000 0.79 31600
27300 Interest 2400 2.58 6192
9300 37792
36600 Liability component 37792
138600 Equity component 2208
$'000
Liability b/d 37792
50000 Finance cost 3023.36
2208 Interest paid -2400
6240 Liability c/d 38415.36
17376.64
75824.64 Working (2) Non current assets
Freehold property $'000
38415.36 Carrying amount b/d 60000
3960 Depreciation for 1st six month -1500
42375.36 Carrying amount at 1 Oct 20x5 58500
17700 Revaluation surplus 7800
2700 Revalued amount 66300
20400 Depreciation after revaluation -1700
62775.36 Carrying amount c/d 64600
138600
Revaluationurplus 7800
Deferred tax on revaluation 1560
$'000 Balance c/d 6240
14326.64
50000
Plant and Equipment $'000
8000 Carrying amount b/d 44000
2418.688 Depreciation for the year -6600
Carrying amount c/d 37400
0.288713
Working (3) Retained earnings
$'000
Retained b/d 3500
Prior year adjustment -450
Restated balance 3050
Profit for the year 14326.64
Retained earnings c/d 17376.64
Working (4) Deffered tax
$'000
Deferred tax b/d 3200
Deferred tax c/d 3960
Deferred tax charge 760
Working (5) Income tax expenses
$'000
Current tax 2700
Under provisions 700
Deferred tax charge 760
Deferred tax on revalu -1560
2600
Working (1) Convertible loan note
$'000
Principal 10000
Interest 600
$'000 DF 8% PV$'000
Principal 10000 0.681 6810
Interest 600 3.993 2395.8
9205.8
Liability component 9205.8
Equity component 794.2
$'000
Liability b/d 9205.8
Finance cost 736.464
Interest paid -600
Liability c/d 9342.264
(a) Schedule adjustment to retained earning for the
year ended 30 September 20x5
$'000
Per trial balance 15500
Reversal of issued cost 1000
Finance cost -2610
Gain on investment property 1000
Disposal profit 2000
Depreciation on property -225
Depreciation on building -2600
Depreciation on plant and equipment -3000
Income tax -800
Retained earnings 10265
(b) Statement of financial position at
30September 20x5 Working (1)loan note
$' 000
Assets Nominal
Non-current assets Issued cost
Property plant and equipment 71175 Fair value received
Current assets 68700
Total assets 139875 Liability b/d
Finance cost
Equity and liability Interest paid
Equity shares 20000 Liability c/d
Revaluation surplus 25600
Retained earnings 10265 Working (2) investment property
Total equity 55865
Non current liability Disposal proceed
6% loan note 29810 Carrying amount
Deferred tax liability 8400 Disposal profit
38210
Current liability 43400 Owner occupied
Current tax payable 2400
45800 Carrying amount
Total liability 84010 Fair value
Total equity and liability 139875 Gain on investment proper
Depreciation for owner oc
Carrying amount at 30 Se
(c) Extracts cash folw $'000
Cash flow from operating activity
Depreciation of property plant and equipment 5825
Disosal profit on investment property -2000
Gain on investment property -1000
Cash flow from investing activity
Sale proceeds from investment property 17000
Working (3) Non current assets
$'000 Land Building
30000 $'000 $'000
-1000 Carrying amount at. 1 Oct 5000 10000
29000 Revaluationsurplus 3000 29000
Revalued amount 8000 39000
29000 Depreciation for the yesr 2600
2610 Balance at 30 September 2 8000 36400
-1800
29810 Revaluation surplus 32000
Deferred tax on revaluation 6400
stment property Balance c /d 25600
$'000 plant and equipment
17000 $'000
15000 Carrying Amount at 1 Oct 24000
2000 Depreciation for the year 3000
Carrying amount c/d 21000
5000 Working (4) Deferred tax
6000 $000
1000 Deferred tax b/d 2500
Deferred tax c /d 8400
225 Deffered tax charge 5900
5775
Income tax expernse $'000
Current tax 2400
Over provision -1100
Deferred tax charge 5900
Deferred tax on revaluation -6400
Income tax 800
(a) Statement of profit or loss and other
comprehensive income for the year ended
31 Oct 20x3' $'000
Revenue 3457505
Cost of sale -2455835
Gross profit 1001670
Distribution cost -116166
Admin Exp -122713
Profit from operating 762791
Other income 24051
Profi before tax 786842
Income tax expense -428000
Profit for the year 358842
Other comprehensive income
Loss on FVTOCI -3250
Gain on revaluation 424000
Deferred tax on revaluation -89040
331710
Total comprehensive income for the year 690552
(b) Statement of changes in equity for the
team ended
Revaluation
Share capital Share premium surplus
Balance at 1 Nov 20x2 900000 500000 32514
Right share issue 180000 180000
Profit for the year
Revaluation surplus 331710
Dividend paid
Balance at 31 Oct. 20x3 1080000 680000 364224
Working (1) Revenue Cost of sale Admin exp
$ $ $
Per question 3765505 2446577 127713
Maintenance service -350000
Commission 42000
Inventory adjustment 9258
Loss on investment FVTPL 3000
Transaction cost -8000
3457505 2455834.69231 122713
Working (3) FVTPL $'000
175400
Fair value 184300
Gain on FVTPL 8900
Working (3)FVTOCI
$'000
Per trial balance 120000
Transaction. Cost 8000
128000
Fair value 124750
Loss on FVTOCI -3250
Working (4) PPE
Land Building
$ $
Carrying amount at. 31 Oct 20x3 800000 476000
Fair value 1000000 700000
Revaluation surplus 200000 224000
Deferred tax on revaluation 42000 47040
Balance on Revaluation surplus 158000 176960
Working (5) Right issue
Dr $ Cr $
Bank 360000
Share capital 180000
Share premium 180000
Retained earnings (C) Restated EPS
436607 $ $
Before right 5 1.6 8
358842 Right 1 1 1
After right 6 9
-216000
579449.30769231 Theoritical ex right price 1.5
Adjust
Share 1.6/1.5
EPS 1.5/1.6
Restated EPS for 20x2 0.1875
(a)?Consolidated Goodwill arising on acquisition date
$'000
Cost of investment
Share exchange 37800
Deferred consideration 13500
Fair value of Non controlling interest 12000
63300
Less:Fair value of net assets
Share capital 15000
Pre retained earnings 27600
Fair value adjustment ;
Plant 4000
Inventory 200
46800
Goodwill arising on acquisition date 16500
(b)Consolidated statement of profit or loss for the year
ended 30September 20x6
$'000 Working (1)
Revenue 112700
Cost of sale -74900 Laurel
Gross profit 37800 Rake wood
Distribution cost -3200 Interest on deferred consideration
Administrative expense -6200 Excess depreciation on plant
Finance cost -1110 Fair value adj:inventory
Investment income 300 Inter Co sale
Share of post profit in associate 600 URP on inventory
Profit before tax 28190
Income tax -7500
Profit for the year 20690
Profit attributable to ; Working(2)
Owners of parents 18370 Post profit in Rakewood
Non-controlling interest 2320 Fair value adj:inventory
Excess depreciation on
URP on inventory
Share of post profit
Revenue Cost of sal AdministraFinance cost
$'000 $'0000 $'000 $'000
84500 58200 4100 300
39000 25500 2100 0
ferred consideration 810
iation on plant 1500
inventory 200
-10800 -10800
300
112700 74900 6200 1110
$'000
7800
-200
-1500
-300
5800
2320
Sphinx Co case
(a)Adjusted profit for the year
ended 31 Dec 20x5 $'000 (b) Statement of changes in equity of the y
Draft profit for the year 166450
Depreciation- building -8500 Balance at 1 Jan 20x5
Depreciation- plant and equipment -31320 Right issue
Foreign exchange gain 2000 Revaluation surplus
Accrued interest on loan note -1050 Profit for the year
Income tax expense -32500 Annual transfer
Dividend paid
Adjusted balance /profit 95080
Balance at 31 Dec 20x
Working (1) Non-current assets
(c) Statement of financial position
as at 31Dec 20x5 Cost at 1 Jan 20x5
$'000 Accumulated Depreciation b/d
Assets Carrying value b/d
Revaluation surplus
Non-current assets Revalued amount
Property,plant and equipment 418980 Depreciation for the year
Current assets Carrying amount c/d
Inventory 115000
Trade receivables 130000
245000 Excess Depreciation
Total assets 663980 Annual Transfer
Equity and liabilities Before revaluation
Equity After revaluation
Share Capital 120000 Excess Depreciation
Share Premium 5000
Retained earnings 258730 Deferred tax on revalu
Revaluation surplus 106500
Total equity 490230
Non-current liabilities
7% loan notes 30000 Revaluation surplus
Deferred tax 28000 Retained earnings
58000
Current liabilities Working (2) Foreign currency exchange
Trade and other payable 69550
Bank overdraft 16200
Cure tax payable 30000 31 October 20x5
115750 31 Dec 20x5
Total liability 173750 Exchange gain
Total equity and liabilities 663980
Working (3) Interest
Accrued interest
Working (4) Income tax expense
Current tax payable
Under provision
Income tax expense
Working (5) Right issue
Before right
Right
After right
Bank
Share capital
Share premium
t of changes in equity of the year ended 31 Dec 20x5
Share Capital Share premium Revaluation reserve Retained earnings Total
100000 0 0 158150 258150
20000 5000 25000
112000 112000
95080 95080
-5500 5500 0
0 0
120000 5000 106500 258730 490230
Non-current assets
Land Building Plant and equipment
$'000 $'000 $'000
50000 150000 320000
Depreciation b/d -90000 -111200
50000 60000 208800
30000 110000
80000 170000
for the year -8500 -31320
80000 161500 177480
5500 Revaluation surplus/remaining life
$'000
3000
8500
5500
28000 Dr Revalution surplus
Cr Deferred tax liability
Dr$'000 Cr $'000
5500
5500
Foreign currency exchange
Dinars
Dinar '000 Rate ($-dianr) $'000
40000 4 10000
40000 5 8000
2000 Dr Payable
Cr Exchange gain income
$'000
1050 Dr interest exp
Cr Accured exp/other payable
ncome tax expense
$'000
30000
2500
32500
Right issue
Share No of shares('000) Share Capital $'000
5 100000 100000
1 20000 20000
6 120000 120000
Dr$'000 Cr $'000
25000
20000
5000
