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Exam Papers Bundle FAC3703

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QUESTION 1 (39 Marks)(70.2 Minutes) MotorVee Ltd is a large entity that manufactures cars and is a dealer in the motor vehicle industry. The vehicles manufactured by MotorVee Ltd are sold to the public as well as corporate clients, they produce consumer luxury vehicles as well as commercial vehicles. The company has a 30 June year-end. Due to the COVID-19 pandemic, the sales volume of motor vehicles sold by MotorVee Ltd had declined, however, an increased number of motor vehicles were leased out during the 2021 financial year-end when compared to the previous financial year. The financial manager of MotorVee Ltd asked you, a recently qualified graduate, to assist with the preparation of the annual financial statements for the year ended 30 June 2021. 1. Lease of motor and commercial vehicles 1.1 Drivers (Pty) Ltd Drivers (Pty) Ltd is a company headquartered in East London, South Africa. On the 2nd of January 2021 Drivers (Pty) Ltd entered into an agreement with MotorVee Ltd for the lease of two new luxury vehicles. The agreement between MotorVee Ltd and Drivers (Pty) Ltd contains a lease in terms of IFRS 16, Leases. The following information was extracted from the lease agreement: Fair value (cash selling price) of vehicles on 2 January 2021 R1 534 000 Lease period 3 years Instalments paid bi-annually in arrears starting on 2 January 2021 R302 225 Interest rate as per the contract 12% p.a. Cost of sale of the motor vehicles incurred by MotorVee R1 045 000 Unguaranteed residual value R130 000 MotorVee Ltd incurred R45 000 legal fees to secure the lease agreement with Drivers (Pty) Ltd. The legal fees which were incurred by Drivers (Pty) Ltd amounted to R25 000. A market-related interest rate for similar lease agreements on 2 January 2021 was 15% per annum. At the end of the lease term will be no transfer of ownership of the motor vehicles to Drivers (Pty) Ltd. 1.2 Trucking (Pty) Ltd

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FAC3703
Exam Papers Bundle

2015-2022




Past Question Papers
Contains Questions ONLY

,FAC3703
Exam Papers Bundle

2015-2022




Past Question Papers
Contains Questions ONLY

, FAC3703
March 2022 Examination
UNIVERSITY EXAMINATIONS



March 2022

FAC3703
SPECIFIC FINANCIAL REPORTING
100 mark
3 hours
60 minutes for uploading

THIS PAPER CONSISTS OF
THIRTEEN (13) PAGES.
INSTRUCTIONS:
Please remember to complete the Honesty Declaration.
Follow these steps to submit your take-home answer file.
1. Access myUnisa at https://my.unisa.ac.za/portal and login using your student number
and myUnisa password.
2. Click on the “myAdmin” tab in the top navigation.
3. In the “Assessments” submenu, click on the “Assessment Info” tool in the drop-down
list.
• Locate the section for UNISA summative assessments at the bottom of the list.
• Find the corresponding portfolio number for your module.
• Click on the Submit link in the Action column and follow the steps described below.
Load the answer file from your PC to myUnisa:
• Click on the Browse button next to File Name.
• In the Choose File dialog box, select the file you want to upload, and then click OK.
• Select the correct file format from the File Format drop-down list. Only PDF
formatted files are allowed to be uploaded.
• Click on the Continue button. If you do not click Continue, no submission action will
take place.

Additional student instructions.
1. Students must upload their answer scripts in a single PDF file (answer scripts must not
be password protected or uploaded as “read only” files)
2. Incorrect file format and uncollated answer scripts will not be considered.
3. NO emailed scripts will be accepted.
4. Students are advised to preview submissions (answer scripts) to ensure legibility and
that the correct answer script file has been uploaded.
5. Incorrect answer scripts and/or submissions made on unofficial examinations platforms
(including the invigilator cell phone application) will not be marked and no opportunity will
be granted for resubmission.
6. Mark awarded for incomplete submission will be the student’s final mark. No opportunity
for resubmission will be granted.
7. Mark awarded for illegible scanned submission will be the student’s final mark. No
opportunity for resubmission will be granted.
8. Submissions will only be accepted from registered student accounts.


1 [PLEASE TURN OVER]

, FAC3703
March 2022 Examination

9. Students who have not utilised invigilation or proctoring tools will be subjected
to disciplinary processes (only include if applicable).
10. Students suspected of dishonest conduct during the examinations will be subjected to
disciplinary processes. UNISA has a zero tolerance for plagiarism and/or any other forms
of academic dishonesty.
11. Students are provided one hour to submit their answer scripts after the official
examination time. Submissions made after the official examination time will be rejected
by the examination regulations and will not be marked.
12. Students experiencing network or load shedding challenges are advised to apply
together with supporting evidence for an Aegrotat within 3 days of the examination
session.
13. Students experiencing technical challenges, contact the SCSC 080 000 1870 or email
or alternatively email your module lecturer. ONLY
communication from your myLIfe account will be considered.


PLEASE NOTE:

1. The paper consists of THREE (3) questions.
2. All questions must be answered.
3. All calculations must be shown.
4. Each question attempted, must commence on a new page.
5. PROPOSED TIME-TABLE: (Avoid deviating from this as far as possible.)


Question Time
number Subject Marks (minutes)

1 Leases 39 70.2


2 Financial Instruments 35 63

Employee benefits,
Borrowing costs and Related
3 Parties 26 47.8

TOTAL 100 180




2 [PLEASE TURN OVER]

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Uploaded on
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Number of pages
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Written in
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Type
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