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1. 2 This is an asset based grant since the grant was provided in order to acquire non – current assets. 2. 5 R Government grant income (5 000 000 * 60% / 5) Change in accounting estimate (5 000 000 * 40% / 5 * 1 / 12) 600 000 (33 333) 566 667 3. 4 The government grant is recognized in profit or loss on a systematic basis over the useful life of the asset. Since this is an asset based grant, the grant will either be recognized as government grant income or just other income in the...

1. Old machinery R Cost 1 April 2015 480 000 Accumulated depreciation (calc 1.1) (168 000) Carrying amount 31 December 2016 312 000 Depreciation (calc 1.2) (16 000) Carrying amount 28 February 2017 296 000 1.1. 480 000 / 60 x 21 = 168 000 1.2. 480 000 / 60

Each part of PPE-item with a cost that is significant in relation to total cost of the item must be depreciated separately. Entity allocates amount initially recognised in respect of a PPE-item to its significant parts and depreciates separately each part Significant part of PPE-item with same useful life and depreciation methods may be grouped together in order to determine depreciation Depreciation of an asset begins when it is available for use as intended by management. Depreciation c...

QUESTION 1 Answer (3) 516 Re-order point = (Weekly usage x lead time) +Safety stock = [(9 600 48 ⁄ x 1.02) x 2 weeks] + 108 = 516 Gels QUESTION 2 Answer (4) 0.8

QUESTION 1 (a) A combined summons will be used to institute action against Joe Soap. Since we are dealing with personal injuries, the type of claim we are dealing with is an unliquidated claim. Unliquidated claims are made by way of a particulars of claim which is always annexed to a combined summons. 1 (b) ANNEXURE A PARTICULARS OF CLAIM 1. The Plaintiff, Alan Smith, is an adult male teacher, who resides at 12 Dan Pienaar Drive, Lonehill, Johannesburg. 2. The Defendant, Joe Soap, is ...

Each question counts 1 mark. R 1. The correct answer is (3). Non- controlling interest At acquisition Retained earnings (107 500 x 20%) 21 500 Share capital (100 000 x 20%) 20 000 Since acquisition Retained earning (321 000 – 107 500) x 20% 42 700 Current year Profit for the year (124 000 x 20%) 24 800 Intragroup sale of inventories (70 000 x 25/125 x 0,72) x 20% (2 016) Dividends paid (50 000 x 20%) (10 000) 96 984 2. The correct answer is (1) R Long term borrowings Ge...

1. Old machinery R Cost 1 April 2015 480 000 Accumulated depreciation (calc 1.1) (168 000) Carrying amount 31 December 2016 312 000 Depreciation (calc 1.2) (16 000) Carrying amount 28 February 2017 296 000 1.1. 480 000 / 60 x 21 = 168 000 1.2. 480 000 / 60

QUESTION 1 (25) Enoch Mabena is one of the successful Tenderprenuers in South Africa who owns Royal Projects, a company that supplies personal protective equipment (PPE). Enoch founded the company in March 2020. In its mission statements it emphases that it supplies superior, affordable and consistently high-quality PPE. In April 2020, the company successfully beat its rivals by securing a 4-year tender to supply PPE to the Gauteng department of health to be used by frontline doctors, nurs...

Answers to all the multiple-choice questions pertaining to the first assignment are included in this tutorial letter. We supply you with the question and answer number. Remember that an assignment is primarily a learning opportunity to enable you to master the course material and to better prepare yourself for the examination. The examination paper will consist of multiple-choice and paragraph style questions. You may regard the assignments as examples of what the examination paper will be ...

QUESTION 1 Three important line items on the statement of cash flows that must be obtained from the income statement include all of the following EXCEPT … 1. interest expenses. 2. net profit after taxes. 3. depreciation and any non-cash charges. 4. cash dividends paid on both preference and ordinary shares. . QUESTION 2 Which one of the following will increase the balance on the cash flow statement of the firm? 1. Sale of stock on credit 2. Loan repayment to banks 3. Debtors payin...