FAC2601 ASSIGNMENT 1
FOR SEMESTER 1 2025
FEND TUTORIALS
,Question 1
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Information that needs to be disclosed in the annual financial statements regarding the
remuneration of directors and prescribed officers is detailed in section 30(4) of the
Companies Act, No 71 of 2008. A prescribed officer is any person that exercise general
executive control over, and management of, the whole or a significant portion of the
business and activities of the company or regularly participate to a material degree therein.
Required:
Which is not an example of a prescribed officer?
1.
Chief financial officer
2.
Regional manager
3.
Non-executive director
4.
Chief executive officer
Question 2
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Question text
The following balances were taken from the books of BZN Ltd on 31 December 2024, the
financial year end of the company:
R
Issued Ordinary share capital (R1 shares) 850 000
90 000 10% non-cumulative preference shares 250 000
60 000 12% cumulative preference shares 150 000
Retained earnings 650 000
Occasionally companies build up large reserves from their accumulated profits. To enable
shareholders to derive some tangible benefits from these reserves, the company may decide
to capitalise these reserves and distribute them among the shareholders in the form of
capitalisation shares.
Included in the capital structure above are the following transaction that took place during
the current financial year that ended on 31 December 2024:
· A Capitalisation issue that the directors made on 1 December 2024 of one ordinary share
for every four shares held at R1,00 per share;
The directors of the company also approved the following transactions during the
year:
· The issue of 5 000 12% cumulative preferences shares at R5 per share on 1 October 2024.
· Dividends on ordinary shares was declared at 10c per share on 31 December 2024. No
dividends were declared or paid during the previous financial year.
Required:
What will the rand value be of the capitalization share issue, issued to shareholders at 1
December 2024?
1.
R170 000
FOR SEMESTER 1 2025
FEND TUTORIALS
,Question 1
Complete
Marked out of 2.00
Flag question
Question text
Information that needs to be disclosed in the annual financial statements regarding the
remuneration of directors and prescribed officers is detailed in section 30(4) of the
Companies Act, No 71 of 2008. A prescribed officer is any person that exercise general
executive control over, and management of, the whole or a significant portion of the
business and activities of the company or regularly participate to a material degree therein.
Required:
Which is not an example of a prescribed officer?
1.
Chief financial officer
2.
Regional manager
3.
Non-executive director
4.
Chief executive officer
Question 2
Complete
Marked out of 2.00
, Flag question
Question text
The following balances were taken from the books of BZN Ltd on 31 December 2024, the
financial year end of the company:
R
Issued Ordinary share capital (R1 shares) 850 000
90 000 10% non-cumulative preference shares 250 000
60 000 12% cumulative preference shares 150 000
Retained earnings 650 000
Occasionally companies build up large reserves from their accumulated profits. To enable
shareholders to derive some tangible benefits from these reserves, the company may decide
to capitalise these reserves and distribute them among the shareholders in the form of
capitalisation shares.
Included in the capital structure above are the following transaction that took place during
the current financial year that ended on 31 December 2024:
· A Capitalisation issue that the directors made on 1 December 2024 of one ordinary share
for every four shares held at R1,00 per share;
The directors of the company also approved the following transactions during the
year:
· The issue of 5 000 12% cumulative preferences shares at R5 per share on 1 October 2024.
· Dividends on ordinary shares was declared at 10c per share on 31 December 2024. No
dividends were declared or paid during the previous financial year.
Required:
What will the rand value be of the capitalization share issue, issued to shareholders at 1
December 2024?
1.
R170 000
