UESTION TWO(30 MARKS)
Croc Ltd is a subsidiary of Able with non-controlling interest of 15%. Its parent company is Able Ltd. Able Ltd also controls 65% of Rovaldo Ltd. Rovaldo Ltd controls 75% of Apple Ltd. Able ltd controls 35% of Vodacom and has significant influence. Croc Ltd controls 50% of white’s shareholdings using equity method for joint ventures.
Amounts are in millions of Rands
Required: fill in the table (10)
Calculate the amount in the group statement in terms of
1. Equity holding of the parent (20)
To calculate the amount in the group statement in terms of equity holding of the parent, we need to consider the percentage of each subsidiary that is owned by the parent company.
1. Equity holding of the parent in Croc Ltd: 100% (since it is a subsidiary)
2. Equity holding of the parent in Rovaldo Ltd: 65%
3. Equity holding of the parent in Apple Ltd: 65% (since it is controlled by Rovaldo Ltd, in which Able Ltd has a 65% equity holding)
4. Equity holding of the parent in Vodacom: 35% (since Able Ltd has significant influence)
5. Equity holding of the parent in White's Shareholdings (a joint venture): 50% (since Croc Ltd has an equity holding of 50%)
Please note that the question does not provide any information about the equity holding of the parent in Able Ltd itself, so we cannot determine that value.