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FAC3764 Assignment 2 semester 1 2023
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5/19/23, 7:31 PM Assessment 2: Attempt reviewMENU
Dashboard / Courses / UNISA / 2023 / Year / FAC3764-23-Y / Assessments / Assessment 2
Started on Friday, 19 May 2023, 3:12 PM
State Finished
Completed on Friday, 19 May 2023, 7:30 PM
Time taken 4 hours 18 mins
Question 1
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Select the most correct answer:
Market participants are the buyers or sellers:
a. in an active market
b. in either the principal or most advantageous market.
c. in either an active or principal market.
d. in the most advantageous market
e. in the principal market
Your answer is correct.
Feedback:
The definition of a market participant refers to the ‘buyers and sellers in the principal (or most advantageous) market for the asset or liability
that…’.
References:
See GG Chapter 25 Section 2.3
See IFRS 13 App A (definition of market participants)
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=10771645&cmid=598919 1/15
,5/19/23, 7:31 PM Assessment 2: Attempt review
Question 2
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Choose the most correct answer:
Dashboard / Courses / UNISA / 2023 / Year / FAC3764-23-Y / Assessments / Assessment 2
An item of property plant and equipment is depreciated by R100 000 for the period, of which R80 000 is capitalised to another asset. The
property plant and equipment roll- forward (i.e. the reconciliation between opening carrying amount and closing carrying amount) that is
included in the notes to the financial statements:
a.
must include disclosure of the depreciation for the period, measured at R100 000.
b. must include disclosure of the depreciation for the period, measured at R80 000.
c.
must include disclosure of the depreciation for the period, measured at R20 000.
d. would not need to include disclosure of the depreciation for the period.
e.
None of the above answers are correct.
Your answer is correct.
Explanation:
The total amount by which the asset is depreciated (R100 000) is presented in the roll- forward, being part of the note supporting the
property plant and equipment line-item in the statement of financial position. The profit or loss section of the statement of comprehensive
income, or the notes thereto, will present the portion of this depreciation that is actually expensed (R20 000).
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=10771645&cmid=598919 2/15
,5/19/23, 7:31 PM Assessment 2: Attempt review
Question 3
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Indicate whether the following is true or false:
Dashboard / Courses / UNISA / 2023 / Year / FAC3764-23-Y / Assessments / Assessment 2
An item of property, plant and equipment must be depreciated unless it has an ‘unlimited useful life’.
Select one:
True
False
Explanation:
IAS 16 states that an item of property, plant and equipment must be depreciated unless it has an unlimited useful life.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=10771645&cmid=598919 3/15
, 5/19/23, 7:31 PM Assessment 2: Attempt review
Question 4
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Non-depreciable land was
Dashboard / Courses / purchased on 1 January
UNISA / 2023 / Year 20X5 for R500 000. / Assessments / Assessment 2
/ FAC3764-23-Y
This land is measured under the revaluation model, with fair values determined at year- end as follows:
31 December 20X5: R600 000
31 December 20X6: R450 000
31 December 20X7: R520 000
Any revaluation surplus will be transferred to retained earnings on disposal of the asset. Ignore tax.
Fill in the missing words:
The revaluation in 20X5 results in an increase (an increase/ a
decrease) in the land’s carrying amount that is accounted for by crediting
(debiting/ crediting) the land’s cost account and debiting
(debiting/ crediting) the revaluation surplus account in other comprehensive income (revaluation
income account in profit or loss/ revaluation expense account in profit or loss/ revaluation surplus account in profit or loss/ revaluation
surplus account in other comprehensive income/ revaluation surplus and revaluation income/ revaluation surplus and revaluation expense).
Your answer is partially correct.
You have correctly selected 2.
Explanation:
The FV exceeded the CA and thus the CA had to be increased. The asset is not depreciated and thus we account for this increase by simply
debiting cost. Since the increase is not reversing a previous decrease in value, the entire increase is credited to revaluation surplus. The
revaluation surplus account forms part of ‘other comprehensive income’ – there is no such account as a revaluation surplus in profit or loss.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=10771645&cmid=598919 4/15
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