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CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
Revision example 2
Additional information
1. Auto Ltd acquired 120 000 ordinary shares in Mobile Ltd on 1
January 2014. The retained earnings of Mobile Ltd at this date were
R47 000 and there were no other reserves. Auto Ltd has controlled
Mobile Ltd since 1 January 2014.
2. On the date of acquisition, the land and buildings of Mobile Ltd
with a carrying amount of R120 000 were revalued to R140 000. No
entries relating to the revaluation were made in the books of
Mobile Ltd. (All tax implications relating to the revaluation can be
ignored.)
3. At the above acquisition date there were no unidentified assets,
liabilities or contingent liabilities, and the fair values of all assets,
liabilities and contingent liabilities were confirmed to be equal to
the carrying amounts thereof, with the exception of the assets
mentioned in additional information 2.
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