, QUESTION 1 (32 marks) – Bean Ltd Group
PRELIMINARY WORKINGS
Working 1: Group Structure and Analysis of Owners' Equity (Bag Ltd)
NCI
Total Equity Bean Ltd (20%)
Details (R) (80%) (R) (R)
At Acquisition Date (30 April 2023)
Share capital 600000 480000 120000
Revaluation surplus 89000 71 200 17800
Retained earnings 475000 380000 95000
Total Equity at Acquisition 1164000 931200 232800
69000 69000 0
NCI AND PURCHASE CONSIDERATION 1233000 1000200 232800
Since Acquisition to Beginning of Year (1 June
2024)
Retained earnings movement (R530 000 - R475
000) 55000 44000 11000
Current Year (1 June 2024 - 31 May 2025)
Profit for the year 805200 644160 161040
Dividends paid -225000 -180000 -45000
Closing Balance (31 May 2025) 1799200 1439360 359840
W3: Revaluation Surplus – Bean Ltd (current year OCI)
Fair value of property after revaluation R 540 000
Carrying amount before revaluation R 415 000
Revaluation surplus (OCI – no deferred tax) R 125 000
W4: Intercompany Skills Development Fee – elimination
Total cash paid by Bag Ltd to Bean Ltd R 125 000
Less: advance for year 2026 (prepaid in Bag / deferred income in Bean) (R 90 000)
Current year income (Bean) / expense (Bag) to eliminate R 35 000
Prepaid expense (Bag SFP) eliminated against deferred income (Bean R 90 000
SFP)
W5: Dividends declared and paid by Bag Ltd
Total dividends declared and paid R 225 000
PRELIMINARY WORKINGS
Working 1: Group Structure and Analysis of Owners' Equity (Bag Ltd)
NCI
Total Equity Bean Ltd (20%)
Details (R) (80%) (R) (R)
At Acquisition Date (30 April 2023)
Share capital 600000 480000 120000
Revaluation surplus 89000 71 200 17800
Retained earnings 475000 380000 95000
Total Equity at Acquisition 1164000 931200 232800
69000 69000 0
NCI AND PURCHASE CONSIDERATION 1233000 1000200 232800
Since Acquisition to Beginning of Year (1 June
2024)
Retained earnings movement (R530 000 - R475
000) 55000 44000 11000
Current Year (1 June 2024 - 31 May 2025)
Profit for the year 805200 644160 161040
Dividends paid -225000 -180000 -45000
Closing Balance (31 May 2025) 1799200 1439360 359840
W3: Revaluation Surplus – Bean Ltd (current year OCI)
Fair value of property after revaluation R 540 000
Carrying amount before revaluation R 415 000
Revaluation surplus (OCI – no deferred tax) R 125 000
W4: Intercompany Skills Development Fee – elimination
Total cash paid by Bag Ltd to Bean Ltd R 125 000
Less: advance for year 2026 (prepaid in Bag / deferred income in Bean) (R 90 000)
Current year income (Bean) / expense (Bag) to eliminate R 35 000
Prepaid expense (Bag SFP) eliminated against deferred income (Bean R 90 000
SFP)
W5: Dividends declared and paid by Bag Ltd
Total dividends declared and paid R 225 000
