F
, AC3702 Assignment 1 (COMPLETE ANSWERS) Semeste
r 2 2024 - DUE 3 September 2024 ; 100% T
RUSTED Compl
Question 1 (50 marks - 75 minutes) KassiLam Limited
(“KassiLam”) was founded by two Soweto born young
entrepreneurs while they were in Varsity. KassiLam specialises
in WIFI installation in the townships and have expanded to the
villages. KassiLam makes money from contracts with the
government through competitive bidding. KassiLam has a 31
December year end and prepares the financial statement in
accordance with the International Financial Reporting standards
(IFRS). KassiLam qualifies as a small business (SME) in terms of
the Income tax Act of South Africa. KassiLam is preparing the
financial statement for the year ended 31 December 2023 and
has the following assets. 1. Vacant Land KassiLam’ s strategy
follows that of McDonald, which is to own as much of their
property. KassiLam acquired land in Limpopo and Eastern Cape
as they are expanding their business to rural areas. The land
was purchased in July 2022 for R1 050 000 in Limpopo and R1
240 000 in the Eastern Cape. The independent appraiser has
valued this land for R1 199 000 in Limpopo and R1 300 000 in
the Eastern Cape on 31 December 2022. On 31 December 2023
the land was valued at R1 140 000 in Limpopo and R1 250 000
in the Eastern Cape. The land is measured on revaluation basis
since it was purchased, and it is the policy of KassiLam to
revalue the land every year. 2. Plant On 1 April 2021, KassiLam
purchased a cable plant that connects the African and American
, AC3702 Assignment 1 (COMPLETE ANSWERS) Semeste
r 2 2024 - DUE 3 September 2024 ; 100% T
RUSTED Compl
Question 1 (50 marks - 75 minutes) KassiLam Limited
(“KassiLam”) was founded by two Soweto born young
entrepreneurs while they were in Varsity. KassiLam specialises
in WIFI installation in the townships and have expanded to the
villages. KassiLam makes money from contracts with the
government through competitive bidding. KassiLam has a 31
December year end and prepares the financial statement in
accordance with the International Financial Reporting standards
(IFRS). KassiLam qualifies as a small business (SME) in terms of
the Income tax Act of South Africa. KassiLam is preparing the
financial statement for the year ended 31 December 2023 and
has the following assets. 1. Vacant Land KassiLam’ s strategy
follows that of McDonald, which is to own as much of their
property. KassiLam acquired land in Limpopo and Eastern Cape
as they are expanding their business to rural areas. The land
was purchased in July 2022 for R1 050 000 in Limpopo and R1
240 000 in the Eastern Cape. The independent appraiser has
valued this land for R1 199 000 in Limpopo and R1 300 000 in
the Eastern Cape on 31 December 2022. On 31 December 2023
the land was valued at R1 140 000 in Limpopo and R1 250 000
in the Eastern Cape. The land is measured on revaluation basis
since it was purchased, and it is the policy of KassiLam to
revalue the land every year. 2. Plant On 1 April 2021, KassiLam
purchased a cable plant that connects the African and American
