The Glamour Ltd is one of the leading events management companies in South Africa and has...

 

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The Glamour Ltd is one of the leading events management companies in South Africa and has a 30 June year end. One of the most recent event that was hosted by The Glamour Ltd is the Mzansi delicious festival in Sandton where big African artists such as Burna Boy were performing. The following information was obtained from the accounting records of The Glamour Ltd as at 30 June 2022: 1. On 18 May 2018, the company issued the following shares to investors: 100 000 Ordinary shares at R7 par value. 110 000 10% Redeemable preference shares at R1 each. Preference shares are redeemable at par in two equal instalments on December 2022 and December 2023. 2. Profit before tax for 2022 (correctly calculated) amounted to R750 000. The balance in the retained earnings account was R1 109 000 on 1 July 2021. 3. A dividend of 50 cents per share was declared on 29 June 2022 payable to ordinary shareholders registered in the Company's register on that date. The ordinary dividend has not yet been recognised in the accounting records of The Glamour Ltd. This dividend was paid on 15 July 2022. 4. On 01 August 2021 The Glamour Ltd received a loan of R700 000 12% loan from Roses Bank on. The loan is repayable in equal annual capital instalments of R150 000 each commencing on 31 December 2022. This loan is secured by a first mortgage bond on land and buildings. 5. During a live performance at soccer city there was an influx number of people and resulted in a stampede. One of the guests was badly injured and rushed to the nearest hospital. The doctors are of the opinion that she will not be able to walk again. The parents of the lady have instated legal action against the company as the hosts of the event on 29 May 2022. The company's lawyers have determined the following probable amounts that could be paid should the lawsuit succeed. They are of the opinion that the company will most likely lose the case because they accepted more than the capacity of the stadium. - R150 000 (10% possibility) R377 000 (35% possibility) R590 000 (30% possibility). 6. Current tax expense for the current reporting period amounts to R230 000. 7. Payables consist of R35 000 trade payables on 30 June 2022. 7 REQUIRED: 2.1 Present and disclose the Liabilities section ONLY of the Statement of Financial Position of The Glamour Ltd for the reporting period ended 30 June 2022 in compliance with the minimum requirements of International Financial Reporting Standards (IFRS). (20) The Glamour Ltd is one of the leading events management companies in South Africa and has a 30 June year end. One of the most recent event that was hosted by The Glamour Ltd is the Mzansi delicious festival in Sandton where big African artists such as Burna Boy were performing. The following information was obtained from the accounting records of The Glamour Ltd as at 30 June 2022: 1. On 18 May 2018, the company issued the following shares to investors: 100 000 Ordinary shares at R7 par value. 110 000 10% Redeemable preference shares at R1 each. Preference shares are redeemable at par in two equal instalments on December 2022 and December 2023. 2. Profit before tax for 2022 (correctly calculated) amounted to R750 000. The balance in the retained earnings account was R1 109 000 on 1 July 2021. 3. A dividend of 50 cents per share was declared on 29 June 2022 payable to ordinary shareholders registered in the Company's register on that date. The ordinary dividend has not yet been recognised in the accounting records of The Glamour Ltd. This dividend was paid on 15 July 2022. 4. On 01 August 2021 The Glamour Ltd received a loan of R700 000 12% loan from Roses Bank on. The loan is repayable in equal annual capital instalments of R150 000 each commencing on 31 December 2022. This loan is secured by a first mortgage bond on land and buildings. 5. During a live performance at soccer city there was an influx number of people and resulted in a stampede. One of the guests was badly injured and rushed to the nearest hospital. The doctors are of the opinion that she will not be able to walk again. The parents of the lady have instated legal action against the company as the hosts of the event on 29 May 2022. The company's lawyers have determined the following probable amounts that could be paid should the lawsuit succeed. They are of the opinion that the company will most likely lose the case because they accepted more than the capacity of the stadium. - R150 000 (10% possibility) R377 000 (35% possibility) R590 000 (30% possibility). 6. Current tax expense for the current reporting period amounts to R230 000. 7. Payables consist of R35 000 trade payables on 30 June 2022. 7 REQUIRED: 2.1 Present and disclose the Liabilities section ONLY of the Statement of Financial Position of The Glamour Ltd for the reporting period ended 30 June 2022 in compliance with the minimum requirements of International Financial Reporting Standards (IFRS). (20)

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