FAC2602
EXAM PACK
,UNIVERSITY EXAMINATIONS
May/June 2022
FAC2602
Selected Accounting Standards and Simple Group Structures
100 marks
2 hours
This paper consists of ELEVEN (11) pages.
Important to note:
1. This paper consists of FOUR (4) questions.
2. All questions must be answered, and basic calculations, where applicable, must be shown.
3. Each question attempted must commence on a new (separate) page.
4. Remember to complete and adhere to the Honesty Declaration.
5. Students must upload their answer scripts in a single PDF file (answer scripts must not be
password protected or uploaded as “read only” files).
6. NO e-mailed scripts will be accepted.
7. Students are advised to preview submissions (answer scripts) to ensure legibility and that
the correct answer script file has been uploaded.
8. Students are permitted to resubmit their answer scripts should their initial submission be
unsatisfactory BEFORE the closure of the portal.
9. Incorrect file format and uncollated answer scripts will not be considered.
10. 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.
11. A mark awarded for an incomplete submission will be the student’s final mark. No opportunity
for resubmission will be granted.
12. A mark awarded for illegible scanned submission will be the student’s final mark. No
opportunity for resubmission will be granted.
13. Submissions will only be accepted from registered student accounts.
14. Students that have not utilized invigilation or proctoring tools will be subjected to disciplinary
processes.
[TURN OVER]
, 2 FAC2602
MAY/JUNE 2022
15. Students have 5 days from the day of their examination to upload their invigilator results from
the Invigilator App. Failure to do so will result in students deemed not have participated in the
online invigilation.
16. 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.
17. 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.
18. Students experiencing network or load shedding challenges are advised to apply for an
aegrotat and submit supporting evidence within three days of the examination session.
19. Students experiencing technical challenges should contact the SCSC on 080 000 1870 or
via e-mail at or alternatively, refer to the Get-Help resource for
the list of additional contact numbers. Communication received from your myLife account will
only be considered.
20. Please scan the QR code below upon commencement of the examination:
21. PROPOSED TIMETABLE: (Avoid deviating from this as far as possible.)
Question Time in
no Subject Marks minutes
1 Group statements and consolidation 14 17
2 Group statements and consolidation 55 66
3 Statement of cash flows 26 31
4 Essay question 5 6
TOTAL 100 120
22. Good luck!
[TURN OVER]
, 3 FAC2602
MAY/JUNE 2022
QUESTION 1 (14 marks) (17 minutes)
The following information relates to Check Ltd and Fourty40 Ltd as at 30 June 2021:
1. Check Ltd is a grocery food chain, operating stores across South Africa. Fourty40 Ltd developed
an application to allow for online grocery purchases and a same day delivery service. At the start
of lockdown, Check Ltd acquired a 70% interest in the ordinary shares and a 40% interest in the
9% cumulative preference shares of Fourty40 Ltd on 1 April 2019. Preference shares are
classified as equity.
At acquisition date, Fourty40 Ltd had been in operation for only a few months. Fourty40 Ltd’s
retained earnings amounted to R430 000, revaluation surplus was R45 000, ordinary share capital
amounted to R550 000, and preference share capital to R240 000 on that date.
The carrying amounts of the assets and liabilities of Fourty40 Ltd were deemed equal to the fair
values thereof at acquisition, except for land. Land was valued from R1 100 000 to R1 750 000.
Due to all the administrative work surrounding the acquisition, Fourty40 Ltd omitted to adjust their
financial records.
During June 2021, Fourty40 Ltd revalued its land again and its total revaluation surplus amounted
to R750 000 after this was recorded.
The issued share capital of both companies remained unchanged since acquisition. Assume each
ordinary share carries one vote and that voting rights alone determine control.
Furthermore, it is also group policy to disclose goodwill at cost less impairment in the consolidated
financial statements. Goodwill was not impaired in the current year.
2. Check Ltd sold a few vehicles to Fourty40 Ltd, as Fourty40 Ltd needed vehicles to deliver
groceries to households. The total carrying amount of the vehicles on 1 April 2020, the selling
date, was R950 000. It was sold to Fourty40 Ltd for R1 100 000. Vehicles are depreciated at 20%
per annum using the reducing balance method.
3. Fourty40 Ltd declared a preference dividend at year-end, for the current and previous year that
was in arrears. The accountant of Fourty40 Ltd was on holiday when the dividend was declared
and forgot to provide for it. Shareholders were also not notified. Hence, none of Fourty40 Ltd’s
shareholders provided for the dividend received, either.
[TURN OVER]
EXAM PACK
,UNIVERSITY EXAMINATIONS
May/June 2022
FAC2602
Selected Accounting Standards and Simple Group Structures
100 marks
2 hours
This paper consists of ELEVEN (11) pages.
Important to note:
1. This paper consists of FOUR (4) questions.
2. All questions must be answered, and basic calculations, where applicable, must be shown.
3. Each question attempted must commence on a new (separate) page.
4. Remember to complete and adhere to the Honesty Declaration.
5. Students must upload their answer scripts in a single PDF file (answer scripts must not be
password protected or uploaded as “read only” files).
6. NO e-mailed scripts will be accepted.
7. Students are advised to preview submissions (answer scripts) to ensure legibility and that
the correct answer script file has been uploaded.
8. Students are permitted to resubmit their answer scripts should their initial submission be
unsatisfactory BEFORE the closure of the portal.
9. Incorrect file format and uncollated answer scripts will not be considered.
10. 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.
11. A mark awarded for an incomplete submission will be the student’s final mark. No opportunity
for resubmission will be granted.
12. A mark awarded for illegible scanned submission will be the student’s final mark. No
opportunity for resubmission will be granted.
13. Submissions will only be accepted from registered student accounts.
14. Students that have not utilized invigilation or proctoring tools will be subjected to disciplinary
processes.
[TURN OVER]
, 2 FAC2602
MAY/JUNE 2022
15. Students have 5 days from the day of their examination to upload their invigilator results from
the Invigilator App. Failure to do so will result in students deemed not have participated in the
online invigilation.
16. 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.
17. 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.
18. Students experiencing network or load shedding challenges are advised to apply for an
aegrotat and submit supporting evidence within three days of the examination session.
19. Students experiencing technical challenges should contact the SCSC on 080 000 1870 or
via e-mail at or alternatively, refer to the Get-Help resource for
the list of additional contact numbers. Communication received from your myLife account will
only be considered.
20. Please scan the QR code below upon commencement of the examination:
21. PROPOSED TIMETABLE: (Avoid deviating from this as far as possible.)
Question Time in
no Subject Marks minutes
1 Group statements and consolidation 14 17
2 Group statements and consolidation 55 66
3 Statement of cash flows 26 31
4 Essay question 5 6
TOTAL 100 120
22. Good luck!
[TURN OVER]
, 3 FAC2602
MAY/JUNE 2022
QUESTION 1 (14 marks) (17 minutes)
The following information relates to Check Ltd and Fourty40 Ltd as at 30 June 2021:
1. Check Ltd is a grocery food chain, operating stores across South Africa. Fourty40 Ltd developed
an application to allow for online grocery purchases and a same day delivery service. At the start
of lockdown, Check Ltd acquired a 70% interest in the ordinary shares and a 40% interest in the
9% cumulative preference shares of Fourty40 Ltd on 1 April 2019. Preference shares are
classified as equity.
At acquisition date, Fourty40 Ltd had been in operation for only a few months. Fourty40 Ltd’s
retained earnings amounted to R430 000, revaluation surplus was R45 000, ordinary share capital
amounted to R550 000, and preference share capital to R240 000 on that date.
The carrying amounts of the assets and liabilities of Fourty40 Ltd were deemed equal to the fair
values thereof at acquisition, except for land. Land was valued from R1 100 000 to R1 750 000.
Due to all the administrative work surrounding the acquisition, Fourty40 Ltd omitted to adjust their
financial records.
During June 2021, Fourty40 Ltd revalued its land again and its total revaluation surplus amounted
to R750 000 after this was recorded.
The issued share capital of both companies remained unchanged since acquisition. Assume each
ordinary share carries one vote and that voting rights alone determine control.
Furthermore, it is also group policy to disclose goodwill at cost less impairment in the consolidated
financial statements. Goodwill was not impaired in the current year.
2. Check Ltd sold a few vehicles to Fourty40 Ltd, as Fourty40 Ltd needed vehicles to deliver
groceries to households. The total carrying amount of the vehicles on 1 April 2020, the selling
date, was R950 000. It was sold to Fourty40 Ltd for R1 100 000. Vehicles are depreciated at 20%
per annum using the reducing balance method.
3. Fourty40 Ltd declared a preference dividend at year-end, for the current and previous year that
was in arrears. The accountant of Fourty40 Ltd was on holiday when the dividend was declared
and forgot to provide for it. Shareholders were also not notified. Hence, none of Fourty40 Ltd’s
shareholders provided for the dividend received, either.
[TURN OVER]
