FAC3702 ASSIGNMENT 2 WRITTEN 13 APRIL 2026 COMPLETE ANSWERS DISTINCTION GUARANTEED

FAC3702 – Assessment 2



QUESTION 1(a): Soshanguve Property – Journal Entries
1 May 2018 – Acquisition (investment property):

Dr Investment property – Land R4 200 000

Cr Bank R4 200 000

Dr Investment property – Building R7 000 000

Cr Bank R7 000 000

30 June 2025 – Fair value adjustments (IAS 40):

Land: 4 850 000 – 4 200 000 = R650 000

Dr Investment property – Land R650 000

Cr Fair value gain (profit or loss) R650 000

Building: 7 600 000 – 7 000 000 = R600 000

Dr Investment property – Building R600 000

Cr Fair value gain (profit or loss) R600 000

1 July 2025 – Transfer to owner-occupied property (IAS 16):

Dr Property, plant and equipment – Land R4 850 000

Cr Investment property – Land R4 850 000

Dr Property, plant and equipment – Building R7 600 000

Cr Investment property – Building R7 600 000

QUESTION 1(b): Property, Plant and Equipment Note
Asset Cost / Accumulated Impairment Carrying Method
Valuation Depreciation (R) Amount (R)
(R) (R)
Land – 4 850 000 – – 4 850 000 Revaluation
Soshanguve
Land – 3 950 000 – – 3 950 000 Revaluation