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QUESTION 3 (15 marks) Zephyr Ltd. is a manufacturing company. They have a December financial year-end. The equity of Zephyr Ltd. at 1 January 2023 comprised the following: Rand (R) Share capital (Class A shares) 5 000 000 Retained earnings 800 000 Revaluation surplus 150 000 The authorised share capital of the company is 3 million Class A shares. Issued Class A shares at 31 December 2022 amounted to 1 000 000 shares. The following transactions occurred during the year ended 31 December 2023: 1. On 30 April 2023, an interim dividend of R0.30 per share was declared. 2. On 30 June 2023, 500 000 Class A shares were issued at R5 per share. 3. Share issue expenses of R80 000 were written off to the share capital account. 4. On 31 December 2023, a final dividend of R0.40 per share was declared. 5. The total comprehensive income for the year was R2 500 000. 6. There was a revaluation of the company's investment portfolio, resulting in a gain of R300 000. Ignore tax on the revaluation. The company elects to record all revaluation gain/losses on this/their investment portfolio in other comprehensive income. 7. The company tax charge of R500 000 should be accrued for the 2023 financial year. REQUIRED: Prepare the Statement of Changes in Equity of Zephyr Ltd. for the financial year ended 31 December 2023. The total column is not required, however the closing balance at year end must be presented. Start by using the following: Share Capital (R) Retained Earnings (R) Revaluation Surplus (R) Total Equity (R) Balance at 01 January 2023 5 000 000 800 000 150 000 Not applicable for this question (15 marks) Competency Framework Reference: AREA 2 B. STEWARDSHIP OF CAPITALS: BUSINESS PROCESSES AND RISK MANAGEMENT B1.1 Fundamental Reporting Concepts a) Identify users' needs and develop a reporting approach by selecting suitable reporting and regulatory framework(s) which satisfies most users' needs in general purpose reporting by:

          QUESTION 3
(15 marks)
Zephyr Ltd. is a manufacturing company. They have a December financial year-end. The equity of Zephyr Ltd. at 1 January 2023 comprised the following:
Rand (R)
Share capital (Class A shares) 5 000 000
Retained earnings 800 000
Revaluation surplus 150 000
The authorised share capital of the company is 3 million Class A shares. Issued Class A shares at 31 December 2022 amounted to 1 000 000 shares.
The following transactions occurred during the year ended 31 December 2023:
1. On 30 April 2023, an interim dividend of R0.30 per share was declared.
2. On 30 June 2023, 500 000 Class A shares were issued at R5 per share.
3. Share issue expenses of R80 000 were written off to the share capital account.
4. On 31 December 2023, a final dividend of R0.40 per share was declared.
5. The total comprehensive income for the year was R2 500 000.
6. There was a revaluation of the company's investment portfolio, resulting in a gain of R300 000. Ignore tax on the revaluation. The company elects to record all revaluation gain/losses on this/their investment portfolio in other comprehensive income.
7. The company tax charge of R500 000 should be accrued for the 2023 financial year.
REQUIRED:
Prepare the Statement of Changes in Equity of Zephyr Ltd. for the financial year ended 31 December 2023. The total column is not required, however the closing balance at year end must be presented.
Start by using the following:
Share Capital (R) Retained Earnings (R) Revaluation Surplus (R) Total Equity (R)
Balance at 01 January 2023 5 000 000 800 000 150 000 Not applicable for this question
(15 marks)
Competency Framework Reference:
AREA 2 B. STEWARDSHIP OF CAPITALS: BUSINESS PROCESSES AND RISK MANAGEMENT
B1.1 Fundamental Reporting Concepts
a) Identify users' needs and develop a reporting approach by selecting suitable reporting and regulatory framework(s) which satisfies most users' needs in general purpose reporting by:

QUESTION 3
(15 marks)
Zephyr Ltd. is a manufacturing company. They have a December financial year-end. The equity of Zephyr Ltd. at 1 January 2023 comprised the following:
Rand (R)
Share capital (Class A shares) 5 000 000
Retained earnings 800 000
Revaluation surplus 150 000
The authorised share capital of the company is 3 million Class A shares. Issued Class A shares at 31 December 2022 amounted to 1 000 000 shares.
The following transactions occurred during the year ended 31 December 2023:
1. On 30 April 2023, an interim dividend of R0.30 per share was declared.
2. On 30 June 2023, 500 000 Class A shares were issued at R5 per share.
3. Share issue expenses of R80 000 were written off to the share capital account.
4. On 31 December 2023, a final dividend of R0.40 per share was declared.
5. The total comprehensive income for the year was R2 500 000.
6. There was a revaluation of the company's investment portfolio, resulting in a gain of R300 000. Ignore tax on the revaluation. The company elects to record all revaluation gain/losses on this/their investment portfolio in other comprehensive income.
7. The company tax charge of R500 000 should be accrued for the 2023 financial year.
REQUIRED:
Prepare the Statement of Changes in Equity of Zephyr Ltd. for the financial year ended 31 December 2023. The total column is not required, however the closing balance at year end must be presented.
Start by using the following:
Share Capital (R) Retained Earnings (R) Revaluation Surplus (R) Total Equity (R)
Balance at 01 January 2023 5 000 000 800 000 150 000 Not applicable for this question
(15 marks)
Competency Framework Reference:
AREA 2 B. STEWARDSHIP OF CAPITALS: BUSINESS PROCESSES AND RISK MANAGEMENT
B1.1 Fundamental Reporting Concepts
a) Identify users' needs and develop a reporting approach by selecting suitable reporting and regulatory framework(s) which satisfies most users' needs in general purpose reporting by:

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