The following is an extract from the statement of changes in equity of Blue Dot (Pty) Ltd for the year ending 31 December 2022: Ordinary Retained Revaluation shares earnings surplus: PPE R R R Balance at 31 December 2022 20 000** 32 000 100 000 ** Represented by 100 000 issued shares. The following transactions occurred during Blue Dot (Pty) Ltd's 2023 financial year: • • • • • • The company realised a profit before tax of R27 000 and a total comprehensive income of R29 000. You can assume that the total amount relating to other comprehensive income is attributable to the revaluation of assets. The company had a tax expense of R8 000. An interim dividend of 50 cents per share was declared and paid on 30 June 2023. On 1 August 2023, the company issued a further 5 000 shares at R1 each. A final dividend of 25 cents per share was declared by the directors on 31 December 2023. Due to the sale of one of the company's revalued assets, R50 000 of the revaluation surplus was transferred to retained earnings. • An error affecting the 2022 financial year was picked up and the effect of the error is that the opening retained earnings for 2023 had to decrease with R120 000. • You can assume that these are the only transactions that occurred which had an effect on the elements included in the statement of changes in equity and you can further assume that the elements listed above are the only elements that make up the equity of Blue Dot. Prepare the Statement of Change in Equity of Blue Dot (Pty) Ltd for the year ended 31 December 2023 in compliance with the requirements of International Financial Reporting Standards. All amounts should be rounded to the nearest Rand. Show all calculations clearly. Comparative figures and a Total column to your statement are not required. (24 marks) 2.2) Based on the Statement of Changes in Equity that you prepared in 2.1, briefly discuss any ethical concerns that you may have with regard to the dividends declared by Blue Dot (Pty) Ltd during the 31 December 2023 financial year. (2 marks)
