ICANFinancial AccountingCompany Accounts and Statement of Financial Position2024

Eko Manufacturing Plc reported the following balances at 31 December 2023: Issued share capital ₦50,000,000; Share premium ₦12,000,000; Retained earnings ₦18,500,000; Revaluation surplus ₦6,000,000; 8% Debentures (repayable 2026) ₦20,000,000; Deferred tax liability ₦3,200,000. What is the total equity attributable to shareholders of Eko Manufacturing Plc?

A₦86,500,000CORRECT
B₦109,700,000
C₦83,300,000
D₦66,500,000
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Why the answer is A, and why the others tempt you.
Total equity comprises only equity components: Share capital ₦50,000,000 + Share premium ₦12,000,000 + Retained earnings ₦18,500,000 + Revaluation surplus ₦6,000,000 = ₦86,500,000. The 8% Debentures are a financial liability and the deferred tax liability is a non-current liability; neither forms part of equity under IAS 1 and IFRS 9.
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