Question 3 25 Marks The following are the abridged financial statements of Moon Ltd (Moon) and...

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Question 3 25 Marks The following are the abridged financial statements of Moon Ltd ("Moon") and its subsidiary Yodo Ltd ("Yodo") as at 31 December 2023: Moon Yodo N$ N$ Assets Property Plant and Equipment 330 000 287 500 Investment in Yodo Ltd at cost price (360 000 450 000 shares) | Investment in First rand Ltd Shares 10 000 12% Debentures (15 000 debentures of N$ 5 each 75 000 in Investec Ltd) Inventories Trade receivables Other current assets Cash and cash equivalents 80 000 120 000 108 500 175 500 35 000 62 000 150 000 Equity and liabilities Share capital (800 000 shares Moon and 400 000 645 000 360 000 shares Yodo) General reserve Retained earnings 59 000 413 000 128 250 Liabilities Long-term loan Trade payables Other current liabilities Bank overdraft 82 500 120 000 35 000 1 500 9 250 30 000 Additional information: 1. 2. 3. Moon Ltd acquired the ordinary shares of Yodo Ltd on 1 January 2023 when the retained earnings was N$95,000. Moon Ltd paid for the investment at acquisition date via a bank transfer. On the date of acquisition of the interest, Moon Ltd was satisfied that the assets and liabilities of Yodo Ltd were fairly valued. It is the entity's policy to measure any non-controlling interests in an acquiree at their proportionate share of the acquiree's identifiable net assets. Required a) Prepare the at acquisition date pro-forma journal entries for the 2023 group financial statements. Journal narrations are not required. (6) b) Prepare a Statement of Financial Position as at 31 December 2023 for the group in accordance with IFRS. Notes and comparative figures are not required. One (1) mark will be allocated for Presentation Skills. (15) c) Prepare all the pro-forma consolidation journal entries to incorporate Yodo Ltd into the Moon Ltd group for the year ended 31 December 2023 assuming that management rather choose to use the fair value method to value non-controlling interest. The fair value of the non-controlling interest of Yodo at acquisition amounted to N$ 42 000, applicable to part (c) only. Furthermore, assume that the total consideration paid for the shares in Yodo Ltd was N$ 400 000. Journal narrations are not required. (4) Question 3 25 Marks The following are the abridged financial statements of Moon Ltd ("Moon") and its subsidiary Yodo Ltd ("Yodo") as at 31 December 2023: Moon Yodo N$ N$ Assets Property Plant and Equipment 330 000 287 500 Investment in Yodo Ltd at cost price (360 000 450 000 shares) | Investment in First rand Ltd Shares 10 000 12% Debentures (15 000 debentures of N$ 5 each 75 000 in Investec Ltd) Inventories Trade receivables Other current assets Cash and cash equivalents 80 000 120 000 108 500 175 500 35 000 62 000 150 000 Equity and liabilities Share capital (800 000 shares Moon and 400 000 645 000 360 000 shares Yodo) General reserve Retained earnings 59 000 413 000 128 250 Liabilities Long-term loan Trade payables Other current liabilities Bank overdraft 82 500 120 000 35 000 1 500 9 250 30 000 Additional information: 1. 2. 3. Moon Ltd acquired the ordinary shares of Yodo Ltd on 1 January 2023 when the retained earnings was N$95,000. Moon Ltd paid for the investment at acquisition date via a bank transfer. On the date of acquisition of the interest, Moon Ltd was satisfied that the assets and liabilities of Yodo Ltd were fairly valued. It is the entity's policy to measure any non-controlling interests in an acquiree at their proportionate share of the acquiree's identifiable net assets. Required a) Prepare the at acquisition date pro-forma journal entries for the 2023 group financial statements. Journal narrations are not required. (6) b) Prepare a Statement of Financial Position as at 31 December 2023 for the group in accordance with IFRS. Notes and comparative figures are not required. One (1) mark will be allocated for Presentation Skills. (15) c) Prepare all the pro-forma consolidation journal entries to incorporate Yodo Ltd into the Moon Ltd group for the year ended 31 December 2023 assuming that management rather choose to use the fair value method to value non-controlling interest. The fair value of the non-controlling interest of Yodo at acquisition amounted to N$ 42 000, applicable to part (c) only. Furthermore, assume that the total consideration paid for the shares in Yodo Ltd was N$ 400 000. Journal narrations are not required. (4)