FAC3764: ASSIGNMENT 2 2023
Fill in the missing words:
Fair value is defined as the price that would
received sell
be to an asset
transfer transfer
or to a liability in
orderly
an transaction
market
between participants at
measurement
the date.
Indicate whether the following statement is true or false.
An item will meet the definition of 'property, plant and equipment' if it is held for use for
rental to others and is expected to be used for more than one period.
Select one:
True
False
Fill in the missing amounts:
A plant is acquired for an amount of R100 000, payable after one year, where these
credit terms are considered to be normal. The present value of the amount payable is
R90 909. The initial measurement of the acquired plant
is .
R100 000
Select the most correct answer:
A plant with a cost of R180 000 was purchased on 1 January 20X1, on which date it was
immediately available for use, as intended by management.
Its fair value on purchase date was R220 000.
It has an estimated economic useful life of 6 years.
Its recoverable amount is R45 000 and its residual value is R90 000. The plant is
measured using the cost model.
, The depreciation for the year ended 31 December 20X1, using the straight-line method,
is:
a.
R30 000
b.
R22 500
c.
R15 000
d.
Nil because the fair value exceeds the cost
e.
None of the above
Indicate whether the following is true or false:
The notes to the financial statements should include disclosure of the amount of the
property plant and equipment that has been pledged as security for liabilities, if any, as
well as the amount of any contractual commitments to acquire further property plant
and equipment.
Select one:
True
False
Fill in the missing words:
Fair value is defined as the price that would
received sell
be to an asset
transfer transfer
or to a liability in
orderly
an transaction
market
between participants at
measurement
the date.
Indicate whether the following statement is true or false.
An item will meet the definition of 'property, plant and equipment' if it is held for use for
rental to others and is expected to be used for more than one period.
Select one:
True
False
Fill in the missing amounts:
A plant is acquired for an amount of R100 000, payable after one year, where these
credit terms are considered to be normal. The present value of the amount payable is
R90 909. The initial measurement of the acquired plant
is .
R100 000
Select the most correct answer:
A plant with a cost of R180 000 was purchased on 1 January 20X1, on which date it was
immediately available for use, as intended by management.
Its fair value on purchase date was R220 000.
It has an estimated economic useful life of 6 years.
Its recoverable amount is R45 000 and its residual value is R90 000. The plant is
measured using the cost model.
, The depreciation for the year ended 31 December 20X1, using the straight-line method,
is:
a.
R30 000
b.
R22 500
c.
R15 000
d.
Nil because the fair value exceeds the cost
e.
None of the above
Indicate whether the following is true or false:
The notes to the financial statements should include disclosure of the amount of the
property plant and equipment that has been pledged as security for liabilities, if any, as
well as the amount of any contractual commitments to acquire further property plant
and equipment.
Select one:
True
False
