Embed Size (px)
Citation preview
FAC2602/101/3/2017
Tutorial Letter 101/3/2017
Selected Accounting Standards and Simple Group Structures
FAC2602
Semesters 1 & 2
Department of Financial Accounting
IMPORTANT INFORMATION:
Please activate your myUnisa and myLife e-mail addresses and ensure you have regular access to the myUnisa module site, FAC2602-2017-S1/2, as well as your group site.
Note: This is an online module, and therefore it is available on myUnisa. However, in order to support you in your learning process, you will also receive study material in printed format.
2
CONTENTS
Page
1 INTRODUCTION .......................................................................................................................... 3
2 OVERVIEW OF FAC2602 ............................................................................................................ 4
2.1 Purpose ........................................................................................................................................ 4
2.2 Outcomes ..................................................................................................................................... 4
3. CONTACT DETAILS .................................................................................................................... 4
3.1 Lecturers ....................................................................................................................................... 4
3.2 Department and College ............................................................................................................... 5
3.3 University ...................................................................................................................................... 5
4 RESOURCES FOR FAC2602 ...................................................................................................... 6
4.1 Registering on myUnisa ................................................................................................................ 6
4.2 Other resources – printed support materials ................................................................................. 7
5 HOW TO STUDY FAC2602 ONLINE............................................................................................ 8
5.1 What it means to study online ....................................................................................................... 8
5.2 The myUnisa tools you will use ..................................................................................................... 8
6 STUDENT SUPPORT SERVICES FOR FAC2602 ....................................................................... 8
7 STUDY PLAN FOR FAC2602 .................................................................................................... 11
8 ASSESSMENT ........................................................................................................................... 13
8.1 Assessment plan ........................................................................................................................ 13
8.2 Due dates and the unique numbers of assignments .................................................................... 14
8.3 Submission of assignments ........................................................................................................ 14
8.4 Plagiarism ................................................................................................................................... 15
9 EXAMINATION ........................................................................................................................... 16
9.1 Examination admission requirements.......................................................................................... 16
9.2 Information regarding the examination ........................................................................................ 16
9.3 Calculator policy ......................................................................................................................... 17
10 CONCLUSION ............................................................................................................................ 17
11 ANNEXURES ............................................................................................................................. 18
ANNEXURE A: Assignment 01 First semester ................................................................................... 18
ANNEXURE B: Assignment 02 First semester ................................................................................... 25
ANNEXURE C: Assignment 01 Second semester .............................................................................. 30
ANNEXURE D: Assignment 02 Second semester .............................................................................. 37
FAC2602/101
3
1. INTRODUCTION
Dear Student We are pleased to welcome you to the FAC2602 module of the Accounting 2 course and trust that you will find it both interesting and rewarding. We will do our best to help you succeed in studying this module. You will be well on your way to success if you start studying early in the semester and resolve to do the assignments properly. When you register, the semester that you register for will be indicated on your registration documents. Ensure that you are registered for the correct semester as you are obliged to write the examination for that semester (first or second semester). The examination for the first semester will be during May/June and the examination for the second semester will be during October/November. You will receive a number of tutorial letters during the semester. A tutorial letter is our way of communicating with you about teaching, learning and assessment. Right from the start we would like to point out that you must read all the tutorial letters you receive during the semester immediately and carefully, as they always contain important and sometimes urgent information. Tutorial Letter 101 contains important information about the scheme of work, resources and assignments for this module. We urge you to read it carefully and to keep it at hand when working through the study material, preparing the assignments, preparing for the examination and addressing questions to your lecturers. You will also find the assignments and assessment criteria as well as instructions for the preparation and submission of the assignments in this tutorial letter. We include additional exam type questions and solutions in Tutorial Letter 102. Your study package also includes three audio CDs and a DVD. The content of the three CDs and the DVD are exactly the same. We include both to suit your individual preference for either an audio or visual presentation of the material. We believe that you will benefit from listening to the CDs or watching the DVD and working through the accompanying Tutorial Letter 103. The CDs and DVD contain explanations and examples of the study material. It adds value to the learning units and MO001, but it does not contain any other or new information not already covered in the learning units. Some of the tutorial matter we mention here may not be available when you register. These will be posted to you as soon as possible, but will also be available on myUnisa. We encourage you to use myUnisa regularly. Should you be faced with specific subject content problems in your studies, please do not hesitate to consult us by e-mail, telephone or personally by appointment. Because this is a fully online module, you need to use myUnisa to study and complete the learning activities for this course. You need to visit the website for FAC2602 on myUnisa frequently. The website for your module is FAC2602-17-S1/2. We trust that you will enjoy this module and wish you all the best!
4
How to approach FAC2602
Because this is an online module, you need to go online to see your study materials and what to do for the module. Go to the website by clicking here: https://my.unisa.ac.za, and login with your student number and password. You will see FAC2602-17-S1/2 in the row of modules in the orange blocks across the top of the webpage. Also remember to check in the ʺ-more-ʺ tab if you cannot find the module in the orange blocks. Click on the module you want to open.
In addition, you will also receive this tutorial letter and the online study materials for your module in printed format. While these printed materials may appear to be different from the online study materials, they are exactly the same and have been copied from the online myUnisa website.
We wish you success on your journey!
2. OVERVIEW OF FAC2602
2.1 Purpose
The purpose of the FAC2602 module is to provide students with knowledge and skills to enable them to draft annual financial statements for simple groups of companies in accordance with the requirements of International Financial Reporting Standards (IFRS). This module will also provide students with the knowledge and skills to enable them to draft statements of cash flow.
2.2 Outcomes
We include the learning outcomes that you should accomplish for each topic and learning unit in the study guide (MO001). In broad terms, these will indicate to you the knowledge and skills we expect you to have mastered by the time you have completed each learning unit. These outcomes are translated into assessment criteria for the learning units. The assessment criteria indicate a required end result, that is, what you should be able to do once you have completed the learning unit.
3. CONTACT DETAILS
3.1 Lecturers
You may contact us, your lecturers, via telephone, e-mail, written correspondence or personal visits.
Your FAC2602 lecturers are as follows: Ms C Wolfaardt Ms S Gani Ms R Grobler
Our contact details are as follows:
Telephone: 012 429 4234 Fax: 012 429 3335 E-mail: [email protected]
Postal address: FOR ATTENTION: FAC2602 lecturers Department of Financial Accounting P O Box 392 Unisa 0003
FAC2602/101
5
Please note: Do not enclose letters to us or insert them into assignments. Personal visits: To avoid any disappointment, please make an appointment with a lecturer when you plan to visit us personally, as we may not always be readily available due to other commitments. 3.2 Department and College Please contact the following member of staff when you need any other assistance in the Department of Financial Accounting: Ms D Kruger Telephone: 012 429 4596 Department of Financial Accounting: Fax number: 012 429 3335 Postal address: Department of Financial Accounting Unisa PO Box 392 Unisa 0003 College Information Coordinators Mr Jabulani Chauke: 012 429 2982 Ms Christine Tuge: 012 429 2233 E-mail: [email protected] College Information Hub Tel no: 012 429 4211 Please ensure that you include your return addresses/numbers in your enquiries. Always have your student number at hand when contacting Unisa. Please direct all queries that are not of a purely administrative nature, but deal with the content of this module to us, the lecturers. Please have your study material with you when you contact us. 3.3 University If you need to contact Unisa about matters not related to the content of this module, please consult the publication my Studies @ Unisa which you received with your study material. This brochure contains information on how to contact Unisa (e.g. to whom you can write for different queries, important telephone and fax numbers and addresses, as well as details of the business hours of certain facilities). Always have your student number at hand when you contact Unisa.
6
Unisa website (http://www.unisa.ac.za or http://mobi.unisa.ac.za) All study-related information is now available on the Unisa corporate website in both web
and mobi formats.
myUnisa (https://my.unisa.ac.za/portal or https://my.unisa.ac.za/portal/pda) You can access you own information via the myUnisa website or mobi site.
E-mail ([email protected]) You may send an e-mail to [email protected] for information on how to contact Unisa via
e-mail.
SMS (32695 – only for students in South Africa) You may send an SMS to 32695 for more information on how to contact Unisa via SMS
and will receive an auto response SMS with the various SMS options. You will pay R1,00 per SMS.
4 RESOURCES FOR FAC2602 4.1 Registering on myUnisa If you have access to a computer that is linked to the internet, you can quickly access resources and information at Unisa. The myUnisa learning management system is Unisa's online campus that will help you to communicate with your lecturers, other students and the administrative departments of Unisa – via your computer and the internet. You can start at the main Unisa website, http://www.unisa.ac.za, and then click on the orange block with “myUnisa”. This will take you to the myUnisa website. To go to the myUnisa website directly, go to https://my.unisa.ac.za. On the myUnisa website, you need to click on the “Claim Unisa Login” at the right-hand side of the screen. You will then be prompted to give your student number to claim your initial myUnisa as well as myLife login details. Please consult the publication my Studies @ Unisa for more information on myUnisa. It is very important that you log into myUnisa regularly. We recommend that you do this at least every seven to 10 days to:
check for new announcements (You can also set up your myLife e-mail account to receive e-mails about new announcements on your cell phone.)
participate in the discussion forum activities (You will have to do activities or tutorial questions for the learning units in this module. You are welcome to discuss any challenges you face with fellow students and us.)
All study material for FAC2602 will be available on myUnisa. You must be registered on myUnisa to be able to access your learning material and various learning resources, submit your assignments and "chat" to us and fellow students about your studies and any challenges you encounter, by participating in online discussion forums. Importantly, myUnisa contains the "Learning Units" tool from which you will be able to access the study material for this module. Unisa also offers online tutoring (e-tutoring) to students. Once you have been registered for FAC2602, you will be allocated to a group of students with whom you can interact during the tuition period, as well as an e-tutor who will be your tutorial facilitator. You will receive a sms informing you about your group, the name of your e-tutor and instructions on how to log onto myUnisa in order to receive further information on the e-tutoring process.
FAC2602/101
7
Online tutoring are conducted by qualified e-tutors who are appointed by Unisa. This service is offered free of charge. All you need to be able to participate in e-tutoring is a computer with an internet connection. If you live close to a Unisa regional centre or a telecentre contracted with Unisa, please feel free to visit any of these to access the internet. E-tutoring takes place on myUnisa, where you can connect with other students in your allocated group. The e-tutor will guide you through your study material during this interaction process. In order to get the most out of online tutoring, you need to participate in the online discussions that the e-tutor will be facilitating. The e-tutor site on myUnisa will look just like your site for FAC2602, except that the group of students will be smaller and the e-tutor will provide helpful guidance. Free computer and internet access
Unisa has entered into partnerships with establishments (referred to as Telecentres) in various locations across South Africa to enable you (as a Unisa student) free access to computers and the Internet. This access enables you to conduct the following academic related activities: registration, online submission of assignments, engaging in e-tutoring activities, amongst others. Please note that any other activity outside of these are for your own costing e.g. printing and photocopying. For more information on the Telecentre nearest to you, please visit www.unisa.ac.za/telecentres. 4.2 Other resources – printed support materials There is no prescribed book for FAC2602. The study guide (MO001) is exhaustive for the purposes of tuition. Unisa will supply the study material for FAC2602, which will consist of the following:
one study guide (MO001)
a number of tutorial letters As we want you to be successful in this online module, we also provide you with some of the study material in printed format. This will allow you to read the study material, even if you are not online. The printed study material:
will be sent to you at the beginning of the semester, but you do not have to wait to receive them to start studying – you can go online to find all your study materials as soon as you have registered;
is a hard copy of the learning content of this module;
will assist you to study this module WITHOUT having to go to the internet or to an internet cafe. This will save you money and enable you to read the materials and do the activities wherever and whenever it suits you.
However, you MUST go online in order to complete the activities and assignments on time and to get the most from the online course. Remember, the printed support materials serve as a back-up to everything you will find online on myUnisa and do not provide anything extra. In other words, you should NOT wait for the printed support materials to arrive to start studying.
8
5 HOW TO STUDY FAC2602 ONLINE 5.1 What it means to study online FAC2602 is taught online, and therefore differs totally from some of your other modules at Unisa. This means the following:
All your study materials and some learning activities are designed to be studied and completed online, on myUnisa. Even though we provide you with printed copies to support your studies, the module is designed for online use as well.
hjhThe communication between you and Unisa also takes place online – by e-mail or kll;.through discussion forums. You can use all of these ways to ask us questions and to get kll;.in touch with us. This also means that we will communicate with you in the same ways: kll;.through e-mails, with announcements and via discussions.
5.2 The myUnisa tools you will use
Discussions. You will find the online discussion forums here. You will be able to share your ideas and insights with other students or ask questions that fellow students or we can answer.
Assignments. You can submit your assignments online. Assignments will be routed to us, who will mark them. Please submit written assignments as a PDF document using the online ʺAssignmentsʺ tool on myUnisa.
6 STUDENT SUPPORT SERVICES FOR FAC2602 Important information appears in your my Studies @ Unisa brochure. The Department of Financial Accounting provides tutorial classes to students at various learning centres. These classes are usually on a Saturday. Tutorial classes are also offered free of charge, but it is important for you to register at your nearest Unisa Regional Centre to secure attendance of these classes, where a tutorial officer will help you to complete the Tutorial enrolment form. Students who are interested must contact the relevant learning centre directly for more information:
REGION AND PHYSICAL ADDRESS TELEPHONE NUMBER(S) OF TUTORIAL SERVICES
NORTH-EASTERN REGION
POLOKWANE (Also Giyani and Makhado)
23A Landros Mare Street Polokwane 0742
Contact person: Mr M Rakoma (015) 290-3443 E-mail: [email protected]
Office number 11 Masingita Complex Giyani Road
(015) 812-2005 Fax: (015) 812-2405 E-mail: [email protected]
87 Krogh Street Louis Trichardt 0920
015 516 3334, Fax: 015 516 3414 E-mail: [email protected]
FAC2602/101
9
REGION AND PHYSICAL ADDRESS TELEPHONE NUMBER(S) OF TUTORIAL SERVICES
NELSPRUIT
1st floor Standard Bank Centre 31 Brown Street Nelspruit, 1201
Contact person: Mr V Mkhwanazi (013) 755-2476 Fax: (013) 755 2489 / 086 519 6153 E-mail: [email protected]
MIDDLEBURG
Ground floor Town Square Building Cnr Walter Sisulu & Bhimy Damane Streets Middleburg, 1055
Contact person: Mr F Serogole (013) 282-4115 Fax: (013) 282-6221 E-mail: [email protected]
GAUTENG
THUTONG (Sunnyside, Pretoria)
Building 14, Sunnyside Campus Cnr Justice Mahomed & Steve Biko Streets Sunnyside, 0002
Contact person: Ms K Prithipaul (012) 441-5723 E-mail: [email protected]
JOHANNESBURG
Bram Fischer Building 29 Rissik Street Johannesburg, 2000
Contact person: Mr N Mnguni (011) 630-4504 E-mail: [email protected]
FLORIDA
Phapha Building 2nd Floor, Science Campus Cnr Christiaan de Wet Road & Pioneer Ave Florida, 1709
Contact person: Ms T Zililo (011) 471 2082 E-mail: [email protected]
BENONI
Unisa Ekurhuleni Regional Service Centre Cnr R51 & Brazil Street Daveyton 1500
Contact person: Dr L Molepo (011) 845-9306 Fax: 0865 084 359 E-mail: [email protected]
VAAL
1st floor Hangar Building Cnr Rhodes Ave & Voortrekker Street Vereeniging, 1939
Contact person: Mr TP Modibedi (016) 455-6304 Fax: 0866 342 233 E-mail: [email protected]
KWA-ZULU NATAL
DURBAN
Ground floor 230 Stalwart Simelane (Stanger) Street Durban, 4001
Contact person: Dr MV Ndlovu (031) 335 8132 Fax: (031) 337-2026 E-mail: [email protected]
RICHARDS BAY
Lot 11637 Block C Via Verbana, Veldenvlei Richards Bay, 3900
Contact person: Mr T Miya (035) 789-3501 Fax: 035 789 2587 E-mail: [email protected]
10
REGION AND PHYSICAL ADDRESS TELEPHONE NUMBER(S) OF TUTORIAL SERVICES
WILD COAST (MBIZANA)
Wild Coast Sun Main Road R51 Mzamba Beach Bizana
Contact person: Mr ZE Cebisa (031) 335 8130 Fax: (031) 337-2026 E-mail: [email protected]
PIETERMARITZBURG
Room 204/205/206 Reid Building 1 Langalibalele Street Pietermaritzburg, 3201
Contact person: Mrs P Shezi (033) 355-1734 E-mail: [email protected] Fax: (033) 394-3626
NEWCASTLE
Cnr Sutherland & Harding Streets Newcastle, 2940
Contact person: Mr MB Ndaba (034) 326 3105 E-mail: [email protected] Fax: (034) 312 4015
CAPE COASTAL
PAROW
15 Jean Simonis Street Parow, 7499
Contact person: Mr JJ Abrahams (021) 936-4161 E-mail: [email protected]
GEORGE
Joubert Plaza 1 100 Meade Street George, 6530
Contact person: Mrs P Mphasane Tel: (044) 884 1300 Fax: (044) 884 1303 E-mail: [email protected]
MTHATHA (also Lusikisiki and Mt Frere)
Economic Affairs Building Cnr Victoria & York Streets Umtata, 5100
Contact person: Mrs NE Msengana (047) 531-5002/6 Fax: (047) 531-5120 E-mail: [email protected]
EAST LONDON (also King Williams Town, Butterworth, Queenstown)
10 St Lukes Road Southernwood East London, 5201
Contact person: Ms N Kenqu (043) 743 9246 Fax: 043 743 9273 E-mail: [email protected]
PORT ELIZABETH
Greyville House Cnr Greyville, Cape & Ring Roads Green Acres Port Elizabeth, 6057
Contact person: Ms N Lallie (041) 363 1070 Fax: 041 363 1071 E-mail: [email protected]
MIDLANDS (FREESTATE, NORTHERN CAPE, NORTH WEST)
MAFIKENG
29 Main Street (opposite ABSA Bank) Cnr Warren and Main Streets Mafikeng, 2745
Contact person: Prof S Shole (018) 381-6617/7318 Fax: (018) 381-7926 E-mail: [email protected]
FAC2602/101
11
REGION AND PHYSICAL ADDRESS TELEPHONE NUMBER(S) OF TUTORIAL SERVICES
RUSTENBURG
1st floor Forum Building Cnr Oliver Tambo Drive & Steen Street Rustenburg, 0300
Contact person: Mr M Khorombi (014) 594 8800/8856 Fax: (014) 594-8863/086 518 5508 E-mail: [email protected]
POTCHEFSTROOM
12 Stil Street Cnr Stil and Goedtz Streets Potchefstroom, 2531
Contact person: Mr MF Mavhungu (018) 294 3362/41 Fax: (018) 297-2107 E-mail: [email protected]
KIMBERLEY
Suite 61A Northern Cape Mall Memorial Road Kimberley, 8301
Contact person: Mrs M Louw (053) 832 6391 Fax: 086 518 7125 E-mail: [email protected]
BLOEMFONTEIN
NRE House, 2nd floor 161 Zastron Street Bloemfontein, 9301
Contact person: Dr S Nhlapo (051) 430-4353 Fax: (051) 430-3822 E-mail: [email protected]
KROONSTAD
1st floor NFS Building 36 Brand Street Kroonstad, 9500
Contact person: Ms K Thantsha (056) 213-2053/4 Fax: (056) 213-1867 E-mail: [email protected]
7 STUDY PLAN FOR FAC2602 Please see your my Studies @ Unisa brochure for general time management and planning skills. Study the relevant learning units of the study guide (MO001) for assignment 01. (Follow the suggested study programme.) Do the exercises for each learning unit, without referring to the solutions. Ascertain why, when, where or how your answers differ from that of the solutions. Do the exercises and mark it. If you do not get more than 70% for an exercise (use your own marking scheme), study the learning unit again. Do the previous exercise(s) again until you get at least 70% per exercise. This may require more time, but it will ensure that you know and understand the content. Complete compulsory assignment 01 (always keep a copy for yourself) and send it to Unisa for marking. Submitting assignment 01 will ensure that you gain admission to the examination. The submission of assignment 02 is also compulsory but has no effect on admission. You can submit all your assignments via myUnisa.
12
Experience has shown that students often fail to plan their studies properly to ensure they achieve specific study goals at predetermined dates. This leads to a haphazard approach to their studies and the use of ineffective study techniques. We believe that the restructuring of the module content into shorter learning units which should be completed in accordance with a well-planned programme, will greatly assist you in making a success of your studies. We assume the following:
That your studies should commence in January (first semester) or July (second semester) and that the full module should be completed by approximately the end of April (first semester) or September (second semester). This will leave sufficient time for revision.
That you study more or less eight hours per week per module. This should be within your reach.
We are convinced that if you adhere to this programme, you should be able to master FAC2602. It is very important that you master the subject matter covered in the learning units and not merely skim them. If you happen to register late or fall behind with this programme, you will have to put in extra effort. Note that this programme is a guideline only. FIRST SEMESTER
Date Module content and assignments
Registration date to 03/02/2017 Learning unit 1
04/02/2017 to 10/02/2017 Learning units 2 and 3 11/02/2017 to 19/02/2017 Learning units 4 and 5 20/02/2017 to 03/03/2017 Learning unit 6 and assignment 01 03/03/2017 Post assignment 01 if you use the postal service 17/03/2017 Due date: compulsory assignment 01
04/03/2017 to 14/03/2017 Learning unit 7 15/03/2017 to 23/03/2017 Learning unit 8 24/03/2017 to 03/04/2017 Learning unit 9 and assignment 02 22/03/2017 Post assignment 02 if you use the postal service 04/04/2017 Due date: compulsory assignment 02
05/04/2017 to 19/04/2017 20/04/2017 until exams
Learning unit B1 Revision
FAC2602/101
13
SECOND SEMESTER
Date Module content and assignments
Registration date to 16/07/2017 Learning unit 1
17/07/2017 to 24/07/2017 Learning units 2 and 3 25/07/2017 to 02/08/2017 Learning units 4 and 5 03/08/2017 to 12/08/2017 Learning unit 6 and assignment 01 10/08/2017 Post assignment 01 if you use the postal service 24/08/2017 Due date: compulsory assignment 01
13/08/2017 to 23/08/2017 Learning unit 7 24/08/2017 to 01/09/2017 Learning unit 8 02/09/2017 to 14/09/2017 Learning unit 9 and assignment 02 04/09/2017 Post assignment 02 if you use the postal service 14/09/2017 Due date: compulsory assignment 02
15/09/2017 to 28/09/2017 29/09/2017 to exam
Learning unit B1 Revision
8 ASSESSMENT 8.1 Assessment plan There are two assignments for this module.
Assignment 01 is a compulsory multiple-choice question (MCQ) assignment and contributes 5% towards your final mark. If you do not submit this assignment, you will not be admitted to the examination.
Assignment 02 is a compulsory written assignment and contributes 15% towards your final mark.
Please keep copies of your submitted assignments as well as proof that you have submitted them.
You need a final mark of 50% to pass a module. This final mark is electronically calculated as follows:
(5% x mark obtained for compulsory assignment 01) + (15% x mark obtained for compulsory assignment 02) + (80% x mark obtained in the examination). This only applies if you have a subminimum of 40% in the exam.
Sub minimum requirements
A sub minimum of 40% in the examination is required.
Although you need a final mark of at least 50% to pass this module, you require a sub minimum of 40% in the examination before your year mark is taken into account. The Assessment Policy of Unisa provides that your final mark is a combination of the year mark and the examination mark, in the ratio as explained above. In the case where a student does not obtain the required sub minimum of 40% in the examination, the year mark does not count. The final mark will then be the examination mark obtained.
14
Please ensure that compulsory assignment 01 reaches Unisa before the due date. Late submission of the assignment will result in you not being admitted to the examination.
The electronic (computerised) marking of the MCQ assignments relies totally on the use of mark-reading sheets or online submission via myUnisa.
8.2 Due dates and the unique numbers of assignments
FIRST SEMESTER 2017 (examination in May/June)
Assignment number
Format Compulsory/
Non-compulsory
Unique number
Due date Contribution
towards final mark
01 Multiple choice Compulsory 683515 17 March 2017 5%
02 Written
assignment Compulsory 769718 04 April 2017 15%
Exam Written Compulsory - Please refer to the
exam timetable 80%
SECOND SEMESTER 2017 (examination in October/November)
Assignment number
Format Compulsory/
Non- compulsory
Unique number
Due date Contribution
towards final mark
01 Multiple choice Compulsory 822771 24 August 2017 5%
02 Written
assignment Compulsory 592297 14 September 2017 15%
Exam Written Compulsory - Please refer to the
exam timetable 80%
8.3 Submission of assignments Assignments constitute an integral part of the tutorial matter. You should also study assignments and tutorial letters for examination purposes.
DO NOT SUBMIT ASSIGNMENTS VIA FAX OR E-MAIL.
For detailed information on assignments, please refer to the my Studies @ Unisa brochure.
Carefully work through the relevant tutorial matter before you attempt the assignment.
Calculate your answers for the multiple-choice questions of assignment 01 on a separate piece of paper. Use a mark-reading sheet to complete assignment 01 and post it, or submit it via myUnisa. You can submit assignment 02 as a PDF document on myUnisa or via post. Ensure that you use the correct UNIQUE NUMBER allocated for the particular assignment and semester.
FAC2602/101
15
Remember:
Each multiple choice question has only one correct answer.
All questions are equal in value.
Do not attach a bar code to the mark-reading sheet.
Assignments must reach us by the due dates.
Do not include any other correspondence in assignment envelopes.
Specify the module code (FAC2602) and assignment number (01 or 02) in all enquiries regarding assignments handed in.
All assignments can be submitted via myUnisa. To submit an assignment via myUnisa:
Go to myUnisa.
Log in with your student number and password.
Select the module from the orange bar (FAC2602).
Click on ʺassignmentsʺ in the left menu.
Click on the number of the assignment you want to submit (01 or 02).
Follow the instructions.
After completing and submitting assignment 01, continue with the study programme. Do not wait for the suggested solution or for the return of the marked assignment. Remember: time is limited!
Mark the copy you made of your assignment by using the suggested solution which will be dispatched to you on the due date. The solutions will also be placed on myUnisa. If your answer differs from the suggested solution, make sure that you understand the reason why – contact us if need be.
Address assignments that will be sent via the postal service, to: The Registrar PO Box 392 Unisa 0003
8.4 Plagiarism Plagiarism is the act of taking words, ideas and thoughts of others and passing them off as your own. It is a form of theft which involves a number of dishonest academic activities. The disciplinary code for students is given to all students at registration. Students are advised to study the code. Kindly read the University Policy on Copyright Infringement and Plagiarism as well. You are not allowed to copy another student’s assignment. The University will take stern actions against such students. We urge you once again to refrain from such malpractices. Although students may work together when preparing for assignments, each student must prepare and submit his or her own individual assignment. It is unacceptable for students to submit identical assignments on the basis that they worked together. That is copying (a form of plagiarism) and none of these assignments will be marked. Furthermore, you may be penalised or subjected to disciplinary proceedings by the University.
16
8.4.1 Declaration
I declare that this assignment, submitted by myself, is my own work. By submitting any FAC2602 assignment, I declare that:
I have read the Unisa Students’ Disciplinary Code;
I know what plagiarism is, that plagiarism is wrong and that disciplinary steps can be kjkljtaken against me if I am found guilty of plagiarism;
my assignments for FAC2602 are my own work;
I have not allowed any other student to copy my work;
I know that if I am found to be in violation of this declaration I will receive 0% for the kjkj.assignment involved.
Please note: you do not have to submit the declaration. By submitting any FAC2602 assignment, you automatically declare that you adhere to all the above with regard to the specific assignment.
9 EXAMINATION Use your my Studies @ Unisa brochure for general examination and examination preparation guidelines. The Examination Section will provide you with information regarding the examination in general, examination venues, examination dates and examination times. 9.1 Examination admission requirements You need to submit assignment 01 to be admitted to the examination. However, it will be to your advantage to complete all the assignments, as they
provide practice which is essential in your study of Accounting
contain valuable revision material 9.2 Information regarding the examination At the end of the semester you will have to write a two hour examination paper. Two important examination tips:
Start every question on a new (separate) page.
When answering a question, always read the “REQUIRED” part before reading through all the other information. This will enable you to identify immediately what information is needed to answer the question.
If you obtain between 40% and 49% as a final mark, you will be allowed to write a supplementary examination. The supplementary examination will be written at the end of the following semester. To pass this supplementary examination, you must obtain at least 50% in the examination itself. If you qualify for a supplementary exam in May/June 2017 you will write the FAC2602 second semester paper in October/November 2017. If you qualify for a supplementary examination in October/November 2017, you will write the FAC2602 paper in
FAC2602/101
17
May/June 2018. However, you may write only one supplementary examination per enrolment of a module. If you qualify for a supplementary examination, you will not receive any further study material during the following semester. You also do not have to submit any assignments. All students entitled to a supplementary examination may still contact us if they have any queries or problems. We may not send, fax or e-mail previous years' examination papers or assignments and solutions, and we would appreciate it if you will not contact us in this regard. We advise you to consult the examination timetable timeously in order to plan your final revision programme. Please start early to avoid cramming at the last moment. At least two weeks before the examination, ensure that you have received all assignment solutions. Solutions are also available on myUnisa. 9.3 Calculator policy You may only use silent, electronic, battery-driven calculators subject to the following conditions:
Calculators must be cordless and may not have print-out facilities or alpha keys.
You may use any financial calculator.
You may not use the calculator function on cell (mobile) phones or any electronic device (e.g. laptops or smart phones).
You may not share a calculator with another person in the examination room.
10 CONCLUSION Please do not hesitate to contact us by e-mail or telephone if you are experiencing problems with the content of this tutorial letter or any aspect of the module. In spite of the care taken to ensure that the study guide, assignments and solutions are comprehensive and free from errors and omissions, discrepancies may still occur. Should you come across such matters, or matters which are not clearly expressed, kindly let us know to enable us to make the necessary corrections. Kind regards Ms C Wolfaardt Ms S Gani Ms R Grobler LECTURERS: ACCOUNTING II – FAC2602
18
ANNEXURE A: ASSIGNMENT 01 FIRST SEMESTER
THIS ASSIGNMENT IS COMPULSORY FOR EXAMINATION ADMISSION AND CONTRIBUTES
5% TOWARDS YOUR FINAL MARK
STUDENTS REGISTERED FOR THE FIRST SEMESTER
Due date: 17 March 2017
Unique number: 683515
FAC2602/101
19
ASSIGNMENT 01/2017 DUE DATE: First semester - 17 March 2017 UNIQUE NUMBER: First semester - 683515 DO NOT SUBMIT ASSIGNMENTS VIA FAX OR E-MAIL 1. Answer this assignment on a mark-reading sheet or submit it via myUnisa. This
assignment is marked electronically, hence the strict adherence to the due date. 2. Before answering this assignment, please read section 8 (Assessment) of this tutorial
letter. 3. This assignment covers learning units 1 to 5 and comprises 15 multiple choice questions. 4. We will not move the due date for this assignment, allow you to submit it late, or
enter into any correspondence or telephone conversations in this regard. 5. Important aspects regarding MCQ assignments
You can use a mark-reading sheet for answering assignment 01. Before completing the mark-reading sheet, please refer to the instructions for completing mark-reading sheets in this year’s issue of my Studies @ Unisa. Read these instructions carefully and follow them exactly to avoid mistakes.
Calculate your answers on a separate piece of paper before you complete the mark-reading sheet or submit your answer on myUnisa.
REMEMBER
- Each question has only one correct answer. - All questions are equal in value. When you use a mark-reading sheet, adhere to the following: - Only use the provided mark-reading sheets. - Colour in the correct block with a HB pencil. - Fill in your student number correctly. - Fill in the assignment number correctly. - Fill in the unique assignment number for the specific semester correctly. Every assignment
which is marked by the computer has a unique number. The number contains information about the course code and assignment number. When the computer reads the mark-reading sheet with, say, the unique number 260308, it establishes that it is Assignment 01 for the specific module.
- Send only your mark-reading sheet in the appropriate envelope to the Assignment Section. - Make sure that you have enough mark-reading sheets.
20
When you use a mark-reading sheet, do not - mark more than one option per question - tear or fold the mark-reading sheet - staple the mark-reading sheet to another piece of paper - colour outside the block - colour the blocks with a pen - make corrections with correction fluid - submit answers on a written sheet of paper - try to repair a torn mark-reading sheet with sticky tape (Use another mark-reading sheet.)
FAC2602/101
21
FIRST SEMESTER 2017 ASSIGNMENT 01 (30 marks) (36 minutes) Glad Ltd wanted to expand its market share and acquired its interest in Wrap Ltd on 31 January 2017. The following represent the statements of financial position for the two companies on that date: Glad
Ltd Wrap Ltd
R R ASSETS Non-current assets Property, plant and equipment 600 000 500 000 Investment in Wrap Ltd at fair value (105 000 shares) 430 000 - Loan – Wrap Ltd 100 000 -
1 130 000 500 000
Current assets
Inventories 220 000 150 000 Trade and other receivables 295 000 248 000 Cash and cash equivalents 60 000 -
575 000 398 000
Total assets 1 705 000 898 000
EQUITY AND LIABILITIES Share capital – ordinary shares (200 000/150 000 shares) 600 000 300 000 Other components of equity 250 000 50 000 Retained earnings 340 000 253 000
Total equity 1 190 000 603 000
Non-current liabilities Loan – Glad Ltd - 100 000 Long-term borrowings 250 000 -
250 000 100 000
Current liabilities Trade and other payables 265 000 170 000 Bank overdraft - 25 000
265 000 195 000
Total liabilities 515 000 295 000
Total equity and liabilities 1 705 000 898 000
Additional information
As the shares in Wrap Ltd were purchased at year end, you can assume that the fair value of the investment equals the cost price thereof. REQUIRED: Answer the following 15 multiple choice questions concerning the consolidated statement of financial position and the consolidated statement of changes in equity of the Glad Ltd Group as at 31 January 2017. Select only one answer per question.
22
ASSIGNMENT 01 (First semester) (continue) 1. What percentage interest does Glad Ltd have in Wrap Ltd? 1. 100% 2. 35% 3. 75% 4. 70% 2. Share capital in the consolidated statement of financial position amounts to: 1. R900 000 2. R810 000 3. R600 000 4. R300 000 3. Property, plant and equipment in the consolidated statement of financial position amount
to: 1. R1 100 000 2. R .770 000 3. R 950 000 4. R 600 000 4. In this instance, assume that control is based on voting rights only, which is determined by
the percentage interest in Wrap Ltd. Which percentage interest will make Wrap Ltd a subsidiary of Glad Ltd?
1. 100% 2. more than 75% 3. more than 50% 4. more than 70% 5. Cash and cash equivalents in the consolidated statement of financial position amount to: 1. R60 000 2. R85 000 3. R35 000 4. R42 500 6. Retained earnings in the consolidated statement of financial position amount to: 1. R517 100 2. R415 100 3. R593 000 4. R340 000
FAC2602/101
23
ASSIGNMENT 01 (First semester) (continue) 7. Non-controlling interests in the consolidated statement of changes in equity amount to: 1. R 173 000 2. R 7 900 3. R 180 900 4. R 150 750 8. Long-term borrowings in the consolidated statement of financial position amount to: 1. R250 000 2. R175 000 3. Rnil 4. R100 000 9. Other components of equity in the consolidated statement of changes in equity amount to: 1. R300 000 2. R210 000 3. R285 000 4. R250 000 10. Which amount will be disclosed as current assets in the consolidated statement of financial
position? 1. R913 000 2. R948 000 3. R973 000 4. R853 600 11. Inventories in the consolidated statement of financial position amount to: 1. R220 000 2. R 70 000 3. R370 000 4. R325 000 12. Trade and other payables in the consolidated statement of financial position amount to: 1. R435 000 2. R265 000 3. R379 000 4. R304 500 13. Trade and other receivables in the consolidated statement of financial position amount to: 1. R468 600 2. R295 000 3. R543 000 4. R248 000
24
ASSIGNMENT 01 (First semester) (continue) 14. Goodwill in the consolidated statement of financial position amounts to: 1. R188 800 2. R 7 900 3. R 42 900 4. R nil 15. Investments in the consolidated statement of financial position amount to: 1. R530 000 2. R301 000 3. R nil 4. R430 000
FAC2602/101
25
ANNEXURE B: ASSIGNMENT 02 FIRST SEMESTER
THIS ASSIGNMENT IS COMPULSORY AND CONTRIBUTES 15% TOWARDS YOUR FINAL
MARK
STUDENTS REGISTERED FOR THE FIRST SEMESTER
Due date: 4 April 2017
Unique number: 769718
26
ASSIGNMENT 02/2017 DUE DATE: First semester - 04 April 2017 UNIQUE NUMBER: First semester - 769718 DO NOT SUBMIT ASSIGNMENTS VIA FAX OR E-MAIL 1. This assignment consists of only one question with subsections. 2. Answer all subsections of this question. 3. Show all calculations. 4. Please follow the instructions in the ʺREQUIREDʺ part of the question carefully to ensure
that you obtain the maximum marks for the question. 5. Before answering this assignment please read section 8 (Assessment) of this tutorial
letter. 6. This assignment covers learning units 1 to 9. Carefully work through the relevant tutorial
matter before you attempt the assignment. 7. We will not move the due date for this assignment, allow you to submit it late, or
enter into any correspondence or telephone conversations in this regard. 8. Please follow the instructions for the submission of written assignments carefully.
INSTRUCTIONS FOR SUBMISSION OF WRITTEN ASSIGNMENTS You can choose to submit written assignments in one of the following ways:
Mail them in the supplied envelope using ordinary post.
Place them in the assignment envelope in a Unisa assignment post box.
Submit them electronically via myUnisa. WE PREFER THAT YOU SUBMIT YOUR ASSIGNMENTS ELECTRONICALLY VIA
MYUNISA.
Please note: If you submit the written assignment electronically via myUnisa, you must convert the file to or scan it in PDF format. Scan and submit the assignment as only one PDF file. The page orientation must be portrait. The PDF file must not be a ʺread onlyʺ file. A coversheet consisting of your name, student number, postal address, module code and assignment number must be completed and included in the scanned document. Please ensure that you do not submit only a coversheet: you must also include your assignment. Any format other than PDF or more than one scanned PDF file will not be accepted and will also be returned unmarked. It is important that you keep a copy of your submitted assignment as well as the submission reference number, to facilitate enquiries that might arise at a later date.
FAC2602/101
27
FIRST SEMESTER 2017 ASSIGNMENT 02 (40 marks) (48 minutes) Rhino Ltd is incorporated in South Africa and listed on the JSE. Rhino Ltd manufactures outdoor and safari equipment. Lion Ltd is a tourism company that focuses on bringing international travellers to South Africa. The information below represents the trial balances of Rhino Ltd and its subsidiary, Lion Ltd as at 31 December 2016:
Rhino Ltd
Lion Ltd
R R
Debits Property, plant and equipment at carrying amount 1 500 000 2 500 000 Investment in Lion Ltd at fair value (cost price: R800 000) 800 000 - Loan to Lion Ltd 80 000 - Inventories 550 000 700 000 Trade and other receivables 454 400 1 399 000 Bank – Giraffe Bank 1 818 000 - Dividends paid - 31 December 2016 50 000 20 000 Cost of sales 1 200 000 1 000 000 Other expenses 350 000 390 000 Income tax expense 467 600 380 800
7 270 000 6 389 800
Credits
Share capital – ordinary shares (250 000/125 000 shares) 500 000 250 000
Revaluation surplus – 1 January 2016 250 000 100 000 Retained earnings – 1 January 2016 2 000 000 1 500 000 Long-term borrowings 1 000 000 1 300 000 Loan from Rhino Ltd - 80 000 Bank overdraft – Monkey Bank - 9 800 Trade and other payables 300 000 400 000 Sales 3 000 000 2 500 000 Other income 220 000 250 000
7 270 000 6 389 800
Additional information 1. Rhino Ltd acquired a 60% interest in Lion Ltd on 1 January 2013. On this date Lion Ltd’s
retained earnings amounted to R1 000 000 and the revaluation surplus amounted to R40 000. The issued share capital of both companies remained unchanged since the incorporations of the companies.
Assume that the carrying amounts of all the assets and liabilities of Lion Bpk were
considered to be equal to their respective fair values at acquisition. On 1 January 2014, property was revalued and this revaluation has been recorded in the records of Lion Ltd. Subsequently, there have been no other revaluations.
28
ASSIGNMENT 02 (First semester) (continue) 2. During the current year, Rhino Ltd started to sell inventory to Lion Ltd at a markup of 20%
on cost. On 31 December 2016 there was inventory amounting to R120 000, that Rhino Ltd sold to Lion Ltd, included in the closing inventory of Lion Ltd. Rhino Ltd sold inventory amounting R500 000 to Lion Ltd in the current year.
3. On 1 January 2014, Lion Ltd sold one of their manufacturing plants to Rhino Ltd and made
a profit of R100 000 on the transaction. It is the group’s policy to recognise depreciation on plant and machinery on the straight-line method at a rate of 25% per annum.
4. Rhino Ltd guarantees bank overdrafts of Lion Ltd for an unlimited amount. 5. Assume that each ordinary share carries one vote and that voting rights alone determine
control. It is group policy to show goodwill at cost less impairment in the consolidated financial statements. Goodwill was not impaired during the current financial year.
REQUIRED: Part A
Marks
(a)
Draft the following pro-forma consolidation journal entries of the Rhino Ltd Group for the year ended 31 December 2016, after taking the above-mentioned information into account:
Elimination of the owner’s equity at acquisition.
7
(b) Recording of the non-controlling interests’ share in the revaluation surplus arising from the revaluation of property since acquisition.
2½
(c) Elimination the unrealised profit associated with the sale of the plant, as well as the depreciation associated with the sale.
8½
[18]
Please note:
Indicate clearly to which company each account refers.
Journal narrations are not required. Show all calculations and round all amounts to the nearest Rand. Ignore the taxation effect on unrealised profits and/or losses, as well as capital gains tax.
FAC2602/101
29
ASSIGNMENT 02 (First semester) (continue) Part B
Marks
Prepare only the following columns of the consolidated statement of changes in equity of the Rhino Ltd Group for the year ended 31 December 2016:
Revaluation surplus
Retained earnings
Non-controlling interests
22
[22]
Please note:
Your answer should comply with the requirements of the International Financial Reporting Standards (IFRS). Show all calculations and round all amounts to the nearest Rand. Ignore the taxation effect on unrealised profits and/or losses, as well as capital gains tax. Notes to the consolidated statements are not required.
30
ANNEXURE C: ASSIGNMENT 01 SECOND SEMESTER
THIS ASSIGNMENT IS COMPULSORY FOR EXAMINATION ADMISSION AND CONTRIBUTES
5% TOWARDS YOUR FINAL MARK
STUDENTS REGISTERED FOR THE SECOND SEMESTER
Due date: 24 August 2017
Unique number: 822771
FAC2602/101
31
ASSIGNMENT 01/2017 DUE DATE: Second semester - 24 August 2017 UNIQUE NUMBER: Second semester - 822771 DO NOT SUBMIT ASSIGNMENTS VIA FAX OR E-MAIL 1. Answer this assignment on a mark-reading sheet or submit it via myUnisa. This
assignment is marked electronically, hence the strict adherence to the due date. 2. Before answering this assignment, please read section 8 (Assessment) of this tutorial
letter. 3. This assignment covers learning units 1 to 5 and comprises 15 multiple choice questions. 4. We will not move the due date for this assignment, allow you to submit it late, or
enter into any correspondence or telephone conversations in this regard. 5. Important aspects regarding MCQ assignments
You can use a mark-reading sheet for answering assignment 01. Before completing the mark-reading sheet, please refer to the instructions for completing mark-reading sheets in this year’s issue of my Studies @ Unisa. Read these instructions carefully and follow them exactly to avoid mistakes.
Calculate your answers on a separate piece of paper before you complete the mark-reading sheet or submit your answer on myUnisa.
REMEMBER
- Each question has only one correct answer. - All questions are equal in value. When you use a mark-reading sheet, adhere to the following: - Use only the provided mark-reading sheets. - Colour in the correct block with a HB pencil. - Fill in your student number correctly. - Fill in the assignment number correctly. - Fill in the unique assignment number for the specific semester correctly. Every assignment
which is marked by the computer has a unique number. The number contains information about the course code and assignment number. When the computer reads the mark-reading sheet with, say, the unique number 260308, it establishes that it is Assignment 01 for the specific module.
- Send only your mark-reading sheet in the appropriate envelope to the Assignment Section. - Make sure that you have enough mark-reading sheets.
32
When you use a mark-reading sheet, do not - mark more than one option per question - tear or fold the mark-reading sheet - staple the mark-reading sheet to another piece of paper - colour outside the block - colour the blocks with a pen - make corrections with correction fluid - submit answers on a written sheet of paper - try to repair a torn mark-reading sheet with sticky tape (Use another mark-reading sheet.)
FAC2602/101
33
SECOND SEMESTER 2017 ASSIGNMENT 01 (30 marks) (36 minutes) Simpson Ltd wanted to make an investment and acquired 80 000 shares in Gumede Ltd on 30 September 2016. The following represent the statements of financial position for the two companies on that date: Simpson
Ltd Gumede
Ltd R R ASSETS Non-current assets Property, plant and equipment 450 000 400 000 Investment in Gumede Ltd at fair value 360 000 - Financial assets 50 000 -
860 000 400 000
Current assets
Inventory 85 000 97 000 Trade and other receivables 200 000 115 000 Cash and cash equivalents - 58 000
285 000 270 000
Total assets 1 145 000 670 000
EQUITY AND LIABILITIES Share capital – ordinary shares (150 000/100 000 shares) 300 000 200 000 Other components of equity 250 000 80 000 Retained earnings 256 000 145 000
Total equity 806 000 425 000
Non-current liabilities Long-term borrowings - 50 000 8% Debentures 75 000 105 000
75 000 155 000
Current liabilities Trade and other payables 184 000 90 000 Bank overdraft 80 000 -
264 000 90 000
Total liabilities 339 000 245 000
Total equity and liabilities 1 145 000 670 000
Additional information
As the shares in Gumede Ltd were purchased at year end, you can assume that the fair value of the investment equals the cost price thereof. REQUIRED: Answer the following 15 multiple choice questions concerning the consolidated statement of financial position and the consolidated statement of changes in equity of the Simpson Ltd Group as at 30 September 2016. Select only one answer per question.
34
ASSIGNMENT 01 (Second semester) (continue) 1. What percentage interest does Simpson Ltd have in Gumede Ltd? 1. 50% 2. 40% 3. 100% 4. 80% 2. When an interest in a subsidiary is acquired during the year: 1. the subsidiary’s items in the statement of financial position are apportioned between
kjhkthe period before acquisition and the period since acquisition 2. the subsidiary’s items in the statement of profit or loss and other comprehensive
kjhkincome are apportioned between the period before acquisition and the period since kjhkacquisition
3. option one and two are applicable 4. consolidation takes place in the same manner as when a subsidiary was acquired
hjg.during a previous year 3. Retained earnings in the consolidated statement of financial position amount to: 1. R320 800 2. R372 000 3. R401 000 4. R256 000 4. Debentures in the consolidated statement of financial position amount to: 1. R180 000 2. R105 000 3. R75 000 4. R159 000 5. Property, plant and equipment in the consolidated statement of financial position amount
to: 1. R850 000 2. R680 000 3. R770 000 4. R450 000 6. Financial assets in the consolidated statement of financial position amounts to: 1. Rnil 2. R40 000 3. R50 000 4. R410 000
7. Cash and cash equivalents in the consolidated statement of financial position amount to:
1. R138 000 2. R 58 000 3. R 22 000 4. R 46 400
FAC2602/101
35
ASSIGNMENT 01 (Second semester) (continue) 8. Current liabilities in the consolidated statement of financial position amount to: 1. R274 000 2. R336 000 3. R354 000 4. R256 000 9. Non-controlling interests in the consolidated statement of financial position amount to: 1. R 85 000 2. R 20 000 3. R 69 000 4. R 65 000 10. Trade and other payables in the consolidated statement of financial position amount to: 1. R184 000 2. R90 000 3. R274 000 4. R256 000 11. Other components of equity in the consolidated statement of changes in equity amount to: 1. R330 000 2. R264 000 3. R314 000 4. R250 000 12. Inventory in the consolidated statement of financial position amounts to: 1. R 85 000 2. R182 000 3. R 97 000 4. R162 600 13. Investment in Gumede Ltd in the consolidated statement of financial position amounts to: 1. R360 000 2. No amount will be disclosed as investment in Gumede Ltd. 3. R288 000 4. R 50 000
36
ASSIGNMENT 01 (Second semester) (continue) 14. Goodwill in the consolidated statement of financial position amounts to: 1. R105 000 2. (R340 000) 3. R 20 000 4. Rnil 15. Total assets in the consolidated statement of financial position amount to: 1. R1 815 000 2. R1 835 000 3. R1 475 000 4. R1 455 000
FAC2602/101
37
ANNEXURE D: ASSIGNMENT 02 SECOND SEMESTER
THIS ASSIGNMENT IS COMPULSORY AND CONTRIBUTES 15% TOWARDS YOUR FINAL
MARK
STUDENTS REGISTERED FOR THE SECOND SEMESTER
Due date: 14 September 2017
Unique number: 592297
38
ASSIGNMENT 02/2017 DUE DATE: Second semester - 14 September 2017 UNIQUE NUMBER: Second semester - 592297 DO NOT SUBMIT ASSIGNMENTS VIA FAX OR E-MAIL 1. This assignment consists of one question with subsections. 2. Answer all subsections of this question. 3. Show all calculations. 4. Please follow the instructions in the ʺREQUIREDʺ part of the question carefully to ensure
that you obtain the maximum marks for the question. 5. Before answering this assignment please read section 8 (Assessment) of this tutorial
letter. 6. This assignment covers learning units 1 to 9. Carefully work through the relevant tutorial
matter before you attempt the assignment. 7. We will not move the due date for this assignment, allow you to submit it late, or
enter into any correspondence or telephone conversations in this regard. 8. Please follow the instructions for the submission of written assignments carefully.
INSTRUCTIONS FOR SUBMISSION OF WRITTEN ASSIGNMENTS You can choose to submit written assignments in one of the following ways:
Mail them in the supplied envelope using ordinary post.
Place them in the assignment envelope in a Unisa assignment post box.
Submit them electronically via myUnisa. WE PREFER THAT YOU SUBMIT YOUR ASSIGNMENTS ELECTRONICALLY VIA
MYUNISA.
Please note: If you submit the written assignment electronically via myUnisa, you must convert the file to or scan it in PDF format. Scan and submit the assignment as only one PDF file. The page orientation must be portrait. The PDF file must not be a ʺread onlyʺ file. A coversheet consisting of your name, student number, postal address, module code and assignment number must be completed and included in the scanned document. Please ensure that you do not submit only a coversheet: you must also include your assignment. Any format other than PDF or more than one scanned PDF file will not be accepted and will also be returned unmarked. It is important that you keep a copy of your submitted assignment as well as the submission reference number, to facilitate enquiries that might arise at a later date.
FAC2602/101
39
SECOND SEMESTER 2017
ASSIGNMENT 02 (40 marks) (48 minutes)
Shiraz Ltd is a company that manufactures equipment used in the wine making process. Pinot Ltd is a wholesaler of wine and buys directly from farmers. Shiraz Ltd decided to invest in Pinot Ltd, to broaden its field of expertise.
The following represents the trial balances of Shiraz Ltd and Pinot Ltd as at 28 February 2017:
Shiraz Ltd Dr/(Cr)
Pinot Ltd Dr/(Cr)
R R
Property, plant and equipment at carrying amount 3 000 000 3 800 000 Investment in Pinot Ltd at fair value (cost price: R2 440 000) 2 440 000 - Loan to Pinot Ltd 120 000 - Inventories 1 200 000 1 350 000 Trade and other receivables 1 184 000 1 262 800 Bank – Khumalo Bank 2 060 000 - Dividends paid - 28 February 2017 100 000 30 000 Cost of sales 1 600 000 1 200 000 Other expenses 950 000 880 000 Income tax expense 546 000 347 200
Share capital – ordinary shares (500 000/200 000 shares) (1 000 000) (400 000) Revaluation surplus (500 000) (150 000) Retained earnings – 1 March 2016 (5 000 000) (3 000 000) Long-term borrowings (1 400 000) (800 000) Loan from Shiraz Ltd - (120 000) Bank overdraft – Khumalo Bank - (180 000) Trade and other payables (800 000) (900 000) Sales (4 000 000) (3 000 000) Other income (500 000) (320 000)
- -
Additional information
1. Shiraz Ltd acquired 160 000 shares in Pinot Ltd on 1 March 2015. On this date Shiraz Ltd’s equity included R2 500 000 in retained earnings and a revaluation surplus of R100 000. Assume each ordinary share carries one vote and that voting rights alone determine control. The issued share capital of both companies remained unchanged since the incorporation of the companies.
Assume that the carrying amounts of all the assets and liabilities of Pinot Ltd were
considered to be equal to their respective fair values at acquisition. A property of Pinot Ltd, with a carrying amount of R 700 000, was revalued to R750 000 in the current year. Pinot Ltd did account for this revaluation in its financial records. No revaluations occurred in Shiraz Ltd in the current year.
40
ASSIGNMENT 02 (Second semester) (continue) 2. Since acquisition, Shiraz Ltd has purchased inventory from Pinot Ltd. Pinot Ltd sells the
inventory to Shiraz Ltd at cost plus 25%. Pinot Ltd sold inventory amounting to R400 000 to Shiraz Ltd during the current financial year. Included in the opening inventory of Shiraz Ltd is an amount of R110 000 that was purchased from Pinot Ltd and closing inventories included R250 000 that was purchased from Pinot Ltd.
3. On 1 September 2016, Shiraz Ltd sold a machine to Pinot Ltd for R940 000. The machine
had a carrying value of R690 000. It is the group’s policy to depreciate machinery at a rate of 25% per annum.
4. Since 1 January 2017, Pinot Ltd pays a monthly management fee of R1 400 to Shiraz Ltd. 5. It is group policy to show goodwill at cost less impairment in the consolidated kjhkj.financial statements. Goodwill was not impaired during the current financial year. REQUIRED:
Part A
Marks
(a)
Draft the following pro-forma consolidation journal entries of the Shiraz Ltd Group for the year ended 28 February 2017, after taking the above-mentioned information into account: Elimination of the owner’s equity at acquisition.
8
(b) Elimination of the unrealised profit included in the opening and closing inventory.
6
[14]
Please note:
Indicate clearly to which company each account refers.
Journal narrations are not required. Show all calculations and round all amounts to the nearest Rand. Ignore the taxation effect on unrealised profits and/or losses, as well as capital gains tax.
FAC2602/101
41
ASSIGNMENT 02 (Second semester) (continue) Part B
Marks
Prepare the consolidated statement of profit or loss and other comprehensive income of the Shiraz Ltd Group for the year ended 28 February 2017.
26
[26]
Please note: Your answer should comply with the requirements of the International Financial Reporting Standards (IFRS). Show all calculations and round all amounts to the nearest Rand. Ignore the taxation effect on unrealised profits and/or losses, as well as capital gains tax. Notes to the consolidated statements are not required.
FAC2602_2017_TL_101_3_E
