FAC 3702 ASSIGNMENT 2

ASSIGNMENT 02 (20 marks) (36 minutes) Shop-A-Lot Ltd is an online retail company with a 31 December year-end. Shop-A-Lot Ltd prepares its financial statements in accordance with International Financial Reporting Standards (IFRS). Security software On 1 March 2017, Shop-A-Lot Ltd purchased security software from an United States of America (US) company at a cost of R1 000 000, in order to protect clients’ personal details from data breaches. An information technology (IT) specialist was contracted at a cost of R60 000 to assist with the installation and implementation of the security software. Training costs of R20 000 was incurred to train the staff of Shop-A-Lot Ltd about the operation of the security software to ensure optimum security of all their clients’ personal details. The security software was a