Question
Integrated Ltd purchased 69500 shares in a company listed on the JSE. The shares acquired on 1 June 2018, were acquired when the share price
Integrated Ltd purchased 69500 shares in a company listed on the JSE. The shares acquired on 1 June 2018, were acquired when the share price was R3.40 per share. Integrated had to pay brokers commission of 2% for this transaction. At the end of year-end date, the share price was R3.70 per share. Integrated has elected to measure the shares at the fair value through profit or loss. Required: Explain the accounting treatment of the shares in the financial statements for the year ended 31 December 2018. Include the calculations. Round to the nearest Rand.
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Horngrens Accounting
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