FAC3702 ASSIGNMENT 01 SUGGESTED ANSWERS (SEMESTER 02 - 2022)
Recent exam questions and answers and summarized notes for exam preparation. 4 for assistance. All the best on your exams!!
• Assignment 01 contribute 15% towards your final mark
• This assignment covers learning units;
• IAS 16, Property, plant and equipment,
• IAS 40, Investment property,
• IAS 12, Income taxes
, Question
REQUIRED Marks
A) Disclose the following notes to the annual financial statements of DriveIT Ltd for the year 34
ended 31 December 2019:
x Property, plant and equipment (A total column is not required)
x Deferred taxation (Only relating to the Bedford view property)
4
B) Prepare all the relevant general journal entries (excluding depreciation) in the accounting records
of DriveIT Ltd for the year ended 31 December 2019, to correctly account for the theft and the
subsequent insurance claim received of the car rental vehicles.
C) The management of DriveIT Ltd is considering to brand their vehicle fleet with removable
auto magnets on the doors to improve the company’s visibility and to use the vehicles as a moving
advertisement in order to attract new business. The financial manager of DriveIt Ltd is uncertain
about the accounting of these removable auto magnet costs and requires your assistance on
this matter. Briefly explain the accounting treatment of the costs of the removable auto magnets in
the annual financial statements of DriveIt Ltd according to IAS 16, Property, plant and equipment.
ONLY PROVIDE WHAT WAS REQUIRED, NO MARKS WILL ALLOCATED FOR IRRELEVANT
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