Exam (elaborations)
FAC2601 ASSIGNMENT 5 SEMESTER 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS
- Course
- Institution
THIS DOCUMENTCONTAINS FAC2601 ASSIGNMENT 5 SEMESTER 2 OF 2024 EXPECTED ANSWERS. USE IT CORRECTLY AS A GUIDE.
[Show more]
Seller
Follow
oscardiura
Reviews received
Content preview
Use the following information to answer questions 20:Ngcobo Ltd participates in the oil industry, which carries the risk of contaminating land and rivers. Ngcobo Ltd commits to cleaning up the
damage it has incurred and makes this commitment clear in both its annual report and on its website.
Ngcobo Ltd undertook an analysis of the implementation of local laws in two countries where it operates, A and B, and the probable costs
associated with the cleanup of in each country:
Local laws Environmental clean-up cost
A i i
Laws assocl_ated withith the
the cleanup
cl of f environmental
envil | R1 500 000
damage are being enforced.
B Law on the cleaning up of environmental damage will be
R3 000 000
enacted shortly after the year-end.
QUESTION 20:
Scenario B will be recognised as a?
O 1. Liability;
O 2. Provision;
O 3. Contingent liability;
O 4. Contingent asset
,Use e unUWInY U1 W anBWEr YuesuLue 17 anu £u.
Ngcobo Ltd participates in the oil industry, which carries the risk of contaminating land and rivers. Ngcobo Ltd commits to cleaning up the
damage it has incurred and makes this commitment clear in both its annual report and on its website.
Ngcobo Ltd undertook an analysis of the implementation of local laws in two countries where it operates, A and B, and the probable costs
associated with the cleanup of in each country:
Local laws Environmental clean-up cost
A: Laws assoc!ated with the cleanup of environmental R1 500000
damage are being enforced.
B Law on the cleaning up of environmental damage will be
R3 000 000
enacted shortly after the year-end.
REQUIRED:
QUESTION 19:
Scenario A will be recognised as a?
O 1. Contingent asset.
O 2. Contingent liability;
O 3. Provision;
O 4. Liability;
, Use the following information to answer question 18:
A lawsuit against Maraisane Ltd is pending and is in connection with an injury an employee sustained while performing work-related duties at the
factory. According to Maraisane Ltd.'s lawyers, there is a considerable probability that the entity will be held liable for R600 000 in damages.
Maraisane Ltd. is insured against these types of events. The insurance provider is likely to reimburse up to R500 000 for all claims of damages.
QUESTION 18:
At what amount will the claim be recognised?
O 1.R500 000;
O 2.R600 000
O 3.R0;
O 4.R100 000;
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller oscardiura. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.89. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82871 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now