QUESTION $2(39$ marks$)$

Roundworm Ltd is a group of companies with a $31$ December year$-$end. The Roundworm group financial statements for the years $20\mathrm{.}21$ and $20\mathrm{.}22$ are given below:

Roundworm Group Ltd

Consolidated statement of comprehensive income for the year ended $31$ December $20\mathrm{.}22$

$($Extract$)$

$\backslash$table$[[,$R$],[$Revenue$,600000000],[$Cost of sales,$(300000000)],[$Gross profit,$300000000],[$Operating expenses,$(150000000)],[$Finance costs,$(44000000)],[$Share of profits from associate,$17000000],[$Profit before tax,$123000000],[$Taxation$,(35000000)],[88000000],[$Other comprehensive income: Gain on revaluation of PPE,$15000000],[103000000],[$Profit attributable to:$],[-$ Non$-$controlling interests,$10000000],[-$ Parent shareholders,$78000000],[88000000],[$Total comprehensible income attributable to:$],[-$ Non$-$controlling interest,$12000000],[-$ Parent shareholders,$91000000\_],[,103000000]]$ Consolidated statement of financial position as at $31$ December $20\mathrm{.}21$ and $20\mathrm{.}22($Extract$)$ Additional information:

Acquisition of subsidiary

During the year ended $31$ December $20\mathrm{.}22,$ Roundworm purchased $80\%$ of the issued equity

share capital of Chong Ltd for R$100000000,$ payable in cash. The net assets of Chong at the

date of acquisition were assessed at fair value as follows:

It is group policy to measure $NCl$ at the proportionate share of the fair value of net assets

at acquisition.

Goodwill

Goodwill suffered an impairment during the year.

Property, plant and equipment

The only disposal in the year was of land with a carrying value of R$90$ million. The

profit on disposal of $R10m$ is included within operating expenses. Depreciation of

R$58$m was charged on PPE in the year.