What amount should be recorded as gain on fair value adjustment in the statement of profit or loss and other comprehensive income for the year ended 31 March 2016?
C Limited is a stock broking firm in the business of buying and selling shares on the JSE (Johannesburg Securities Exchange) on behalf of its clients and on its own behalf. On 1 December 2015, C Limited bought, on its own account, 10 000 shares of D Limited when the market price was R40. The share price of D Limited rose drastically to R60 and on 31 March 2016, C Limited sold 5 000 of the D Limited shares.
Assuming that the year-end of C Limited is 31 March each year and that the corporate tax rate is 28% for 2016 and that only 70% of
What amount should be recorded as gain on fair value adjustment in the statement of profit or loss and other comprehensive income for the year ended 31 March 2016?
Step by step
Solved in 2 steps
