Exam (elaborations)
FAC3762 Assignment 2 of 2021
- Institution
- University Of South Africa (Unisa)
FAC3762 Assignment 2 of 2021
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
FAC3762 ASSIGNMENT 2 OF 2021QUESTION 1
(a) Notes to the annual statements of Plastics Ltd for the year ended31 December
2020
1. Profit before tax
Profit before tax is stated after taking the following into account
R
Depreciation 53 290
Total depreciation [109 430 (𝐶1) + 39 611 (𝐶2)] 149 041
Depreciation capitalised (95 751)
Net Finance Cost 20 720
Finance cost 20 720
Total interest expense [91 067 (𝐶1) + 105 787 (𝐶2)] 196 854
Interest expense capitalized [80 244 (𝐶1) + 95 890 (𝐶2)] (176 134)
Finance Income -
Total interest income 18 546
Interest income capitalized (18 546)
2. Property, plant & equipment
Plant
R
Carrying amount at beginning of year -
Cost -
Accumulated Depreciation -
Additions at cost 4 500 000
Interest capitalized [80 244 (𝐶1) + 77 344 (𝐶2)] 157 588
Depreciation capitalized (𝐶1) 95 751
Depreciation for the year (𝐶2) (39 611)
Carrying amount at end of year 4 713 728
Cost 4 753 339
Accumulated Depreciation (39 611)
FOR ACCADEMIC NEEDS CONTACT 065 160 9781/INFO@UNITUTORIALS.CO.ZA
, 3. Leases
3.1. Right – of – use assets
R
Carrying amount at beginning of year -
Additions (𝐶1) 984 869
Depreciation for the year (𝐶1) 109 430)
Carrying amount at end of year 875 439
3.2. Maturity analysis of future lease payments payable at the reporting date
R
Future lease payments (undiscounted)
- For the year ended 31 December 2021 (132 381 ∗ 2) 264 762
- For the year ended 31 December 2022 (132 381 ∗ 2) 264 762
- For the year ended 31 December 2023 (132 381 ∗ 2) 264 762
- For the year ended 31 December 2024 (132 381 ∗ 2) 264 762
- For the year ended 31 December 2020 (132 381 + 100 000) 232 381
Total future lease payments 1 291 429
Total future finance cost (43 292 + 60 135 + 18 330 + 36 661 + 49 480 +
14 525 + 29 051 + 37 252 + 10 159 + 20 319 + 23 221 + 5 149 + 10 299) (357 873)
Lease liability 933 556
Short – term portion presented under current liabilities (933 556 − 790 551) 143 005
Long – term portion presented under current liabilities (933 556 − 790 551) 790 551
3.3. Total cash flows relating to leases
R
Presented under financing activities
Cash payments for principal portion of lease liabilities 62 960
Presented under operating activities
Cash payments for legal fees 10 000
Cash payments for interest portion of lease liabilities 69 421
142 381
FOR ACCADEMIC NEEDS CONTACT 065 160 9781/INFO@UNITUTORIALS.CO.ZA
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller UNISOLUTIONS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R200,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now