Total equity and liabilities

Additional information:

On $1$ January $2023$ Maswe Ltd sold all of its $80\%$ holding in Magano Ltd for cash of P$619,900.$ Goodwill

arising on this acquisition was calculated correctly at P$79,800,$ using the proportionate method, although

impairments of p$30,000$ had been recognised by $30$ June $2022.$ The profit from discontinued operations in the

consolidated statement of profit or loss relates wholly to the sale of the shares in Magano Ltd and can be

analysed as follows:

The net assets of Magano Ltd at the date of disposal were as follows:

Non$-$current assets comprised of property, plant and equipment and goodwill which had arisen on

business combinations. The following is relevant to the movements of non$-$current assets during the

year ending $30$ June $2023$:

The only movement on goodwill was with regards to the disposal of Magano Ltd$.$

A depreciation charge of P$495300$ was recognised during the year.

Other than the sale of Magano Ltd$,$ there were no other land, plant, or equipment disposals.

The group entered into finance leases for assets with a cash price of P$342000.$ All finance costs

relate to finance leases.

On $1$ July $2022$ Maswe Ltd revalued a plot of land. On the same date a bullding in a different

location, which cost Maswe Ltd P$750000$ on $1$ July $2000,$ was also revalued to P$816,000.$ The

building was being depreciated over a useful life of $50$ years.

In line with best practice, a transfer was made between the revaluation surplus and retained

earnings.

During the year ended $30$ June $2023$ ordinary dividends were paid to both the shareholders of Maswe

Ltd and to the non$-$controlling interest. Maswe Ltd also made an issue of shares for cash and a bonus

issue of ordinary shares out of share premium.

Requirement: Prepare a consolidated statement of cash flows for Maswe Ltd for the fiscal year ended

$30$ June $2023,$ using the indirect method of reconciling profit before tax to cash generated from

operations.Question Four

On $1$ July $2022$ Maswe Ltd had a number of subsidiary companies. Extracts from the group's

consolidated financial statements for the year ended $30$ June $2023$ are set out below.

Consolidated statement of profit or loss for the year ended $30$ June $2023($extract$)$

Continuing operations

Profit from operations

Finance costs

Profit before tax

Income tax expense

Profit for the year from continuing operations

Discontinued operations

Profit for the year from discontinued operations

Profit for the year

Attributable to:

Owners of Maswe Ltd

Non$-$controlling interest

Consolidated statement of financial position as at $30$ June

EQUITY AND LIABILITIES

Equity

Ordinary share capital $($P$1$ shares$)$

Share premium account

Revaluation surplus

Retained earnings

Attributable to the equity holders of Maswe Ltd

Non$-$controlling interest

Non$-$current liabilities

Finance lease liabilities

Current liabilities

Trade and other payables