OTHER WORKING NOTES REQUIRED FOR THE ICAN QUESTION




Some other working notes are required to be prepared to be able to solve the question correctly. These are stated below:

a.    Other necessary working notes:

NOTE 12: Computation of revaluation surplus on the Land of Megida as at 1 June 2012
=N= 'Million
=N= 'Million
Fair Value of identifiable Net Asset
4,000.00
Less:


           Share Capital
2,200.00

           Retained Earnings
1,360.00

           Other Components of Equity
40.00



3,600.00
REVALUATION SURPLUS ON LAND
400.00

NOTE 13: Computation of the value of the PPE of Mindara as at 31 May 2013
=N= 'Million
BALANCE AS AT 31 MAY 2013
1,610.00
ADD: REVALUATION SURPLUS
140.00


1,750.00
LESS: DEPRECIATION (140million/7 years)
20.00


1,730.00

NOTE 14: Calculation of the consolidated property, plant and equipment of Barewa group
=N= 'Million
BAREWA
2,650.00
MEGIDA
2,300.00
MINDARA
1,730.00
Revaluation surplus on Megida's Land
400.00


7,080.00

NOTE 15: Calculation of consolidated inventory of Barewa group
=N= 'Million
BAREWA
1,350.00
MEGIDA
550.00
MINDARA
730.00


2,630.00

NOTE 16: Calculation of consolidated trade receivables of Barewa group
=N= 'Million
BAREWA
910.00
MEGIDA
450.00
MINDARA
320.00


1,680.00
NOTE 17: Calculation of consolidated cash and cash equivalent of Barewa group
=N= 'Million
BAREWA
1,020.00
MEGIDA
1,000.00
MINDARA
80.00


2,100.00

NOTE 18: Calculation of consolidated long term loan of Barewa group
=N= 'Million
BAREWA
1,200.00
MEGIDA
150.00
MINDARA
50.00


1,400.00

NOTE 19: Calculation of consolidated deferred tax of Barewa group
=N= 'Million
BAREWA
250.00
MEGIDA
90.00
MINDARA
30.00


370.00

NOTE 20: Calculation of consolidated trade payables of Barewa group
=N= 'Million
BAREWA
1,150.00
MEGIDA
300.00
MINDARA
600.00


2,050.00

NOTE 21: Calculation of consolidated current tax payable of Barewa group
=N= 'Million
BAREWA
600.00
MEGIDA
80.00
MINDARA
240.00


920.00


NOTE 22: Calculation of the value of the available for sale instrument of Barewa as at 31 May 2013
[N5.0 X 90million PESOS]      =   450million

NOTE 23: Calculation of consolidated available for sale of Barewa group
=N= 'Million
BAREWA
450.00
MEGIDA
60.00
MINDARA
50.00


560.00

NOTE 24: Calculation of BAREWA’S RETAINED EARNINGS AS AT 31 May 2013
=N= 'Million
BALANCE AS PER ACCOUNT
2,400.00
ADD: SHARE OF PROFIT FROM CALAMARI (ASSOCIATE) 25% X 100million
25.00
LESS: IMPAIRMENT LOSS
(50.50)
LESS: TRANSLATION/EXCHANGE LOSS
(9.50)


2,365.00

NOTE 25: Calculation of BAREWA GROUP’S RETAINED EARNINGS AS AT 31 May 2013
=N= 'Million
BAREWA'S RETAINED EARNINGS
2,365.00
ADD: SHARE OF MEGIDA'S POST-ACQ PROFIT (80% X 140)
112.00
ADD: SHARE OF MINDARA'S POST-ACQ PROFIT (70% X 230[i.e 250million LESS 20million depreciation])
161.00


2,638.00


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