Exam (elaborations)
Exam (elaborations) FAC3702 - Distinctive Financial Reporting (FAC3702)
- Institution
- University Of South Africa (Unisa)
Exam (elaborations) FAC3702 - Distinctive Financial Reporting (FAC3702)EXAM PACK MAYJUNE 2022
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1UNIVERSITY EXAMINATIONS
May / June 2022
FAC3702
DISTINCTIVE FINANCIAL REPORTING
100 marks
3 hours
60 minutes for uploading
THIS PAPER CONSISTS OF TWELVE (15) PAGES.
INSTRUCTIONS:
Please remember to complete the Honesty Declaration.
The FAC3702 require invigilation via the INVIGILATOR APP.
Follow these steps to submit your take-home answer file.
1. Open the Take-Home (Assignment) assessment.
2. Download the question paper and note any additional information provided, such as the proctoring tool to be used.
3. Complete the Take-Home assessment in MS Word or on paper.
Note: MS Word documents need to be saved as PDF documents, and paper-based answers must be scanned into a
combined PDF document.
4. When ready to submit, open the Take-Home (Assignment) assessment again and click on the Add Submission
button.
5. Note the file requirements such as:
• File size limit.
• Number of files that can be submitted.
• File formats allowed.
6. Check the acknowledgment checkbox and upload your answers document and then click on the Save changes
button.
7. Review your submission information regarding the status and click on your submission file link to check if it's correct.
8. If you need to resubmit a file, you can click on the Edit Submission button.
Note: You will need to delete any existing files.
PLEASE NOTE:
1. The paper consists of TWO (2) questions.
2. All questions must be answered.
3. All calculations must be shown.
5. Each question attempted, must commence on a new (separate) page.
6. PROPOSED TIME-TABLE: (Avoid deviating from this as far as possible.)
Question Subject Marks Time
number (minutes)
Property, plant and equipment, Investment Property, Non-
1 current assets held for sale and discontinued operations, 54 97
Impairment loss and Intangible assets.
Property, plant and equipment, Investment property, Intangible
2 assets, Impairment loss and the effects of foreign exchange 46 83
rates.
TOTAL 100 180
, 2 FAC3702
2022
FAC3702
Duration:
180 Minutes
Date: 18 May 2022
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
Ensure you are connected to the internet in order to log into the
Invigilator App and scan this QR code.
If you encounter difficulty in scanning the QR code, you can
alternatively enter the Exam Access Code below the QR code to
start the invigilation.
Unless otherwise specified by your institution, note that you can only
scan this QR code once. If your assessment has multiple online
sections, tests or attempts, you should NOT finish the invigilation until
your entire assessment has been completed.
Only scan the QR code when the assessment formally commences.
The QR code is only scannable for a limited time and it
should therefore be scanned as soon as possible to start
the invigilation.
Once the QR code is scanned, ensure your media volume Is turned up and place your smartphone next to you. The
Invigilator App will notify you with a notification beep when you are required to action a request, which you should then
perform.
We recommend that you keep your smartphone on charge for the duration of the assessment.
If you only have one device you may access your assessment in the application by pressing the ‘Access Exam’
button in the top right corner of your app.
Keep the Invigilator App open on your cell phone for the full duration of the assessment. You are
not allowed to minimise or leave the app.
Ensure you are connected to the internet in order to commence the invigilation as well as at the end of the
assessment. No internet connection is required during the assessment.
You have to adhere to the assessment time limit communicated to you by your institution as the time
displayed in the Invigilator App could differ from the time allocated to complete your assessment.
You can click the "Finish Assessment" button in the app if you finish your assessment early.
If you are performing a written or Scan-and-Upload assessment:
The Invigilator App may request you to take a picture of every page of your answer sheet at the end of the
assessment. Unless otherwise specified by your institution, this does NOT replace the normal upload
of your script to your institutions online portal
After completing invigilation and following all app instructions, you must upload your Invigilation App data. If however
there is a delay in the upload of the app data at the end of the assessment, you should prioritise the upload of your
script to your university portal and you can temporarily minimise the app to do so. Uploading of app data is not time sensitive
and you can come back and do it after you have successfully uploaded your script to the exam portal.
Should you encounter any technical difficulty, please WhatsApp The Invigilator Helpdesk on 073 505 8273.
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, 3 FAC3702
2022
Examination rules.
The following examination rules will apply to your online examinations:
i. For file upload/take-home examinations:
1. Students must upload their answer scripts in a single PDF file (answer scripts must
not be password protected or uploaded as “read only” files).
2. NO e-mailed scripts will be accepted.
3. Students are advised to preview submissions (answer scripts) to ensure legibility and
that the correct answer script file has been uploaded.
4. Students are permitted to resubmit their answer scripts should their initial submission
be unsatisfactory.
5. Incorrect file format and uncollated answer scripts will not be considered.
6. Incorrect answer scripts and/or submissions made on unofficial examinations
platforms (including the invigilator cellphone application) will not be marked and no
opportunity will be granted for resubmission.
7. A mark awarded for an incomplete submission will be the student’s final mark. No
opportunity for resubmission will be granted.
8. A mark awarded for illegible scanned submission will be the student’s final mark. No
opportunity for resubmission will be granted.
9. Submissions will only be accepted from registered student accounts.
10. Students who have not utilised invigilation or proctoring tools will be subjected to
disciplinary processes.
11. Students have 5 days from the day of their examination to upload their invigilator
results from the Invigilator App. Failure to do so will result in students deemed not have
participated in the online invigilation.
12. Students suspected of dishonest conduct during the examinations will be subjected
to disciplinary processes. Unisa has a zero tolerance for plagiarism and/or any other
forms of academic dishonesty.
13. Students are provided one hour to submit their answer scripts after the official
examination time. Submissions made after the official examination time will be
rejected by the examination regulations and will not be marked.
14. Students experiencing network or load shedding challenges are advised to apply for
an aegrotat and submit supporting evidence within three days of the examination
session.
15. Students experiencing technical challenges should contact the SCSC on 080 000
1870 or via e-mail Examenquiries@unisa.ac.za or refer to the Get- Help resource for
the list of additional contact numbers. Communication received from your myLife
account will be considered.
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, 4 FAC3702
2022
QUESTION 1 (54 marks) (97 minutes)
Dimba Mining Ltd is a mining company with a 28 February financial year end. The company’s head
office is located in Johannesburg, Gauteng, with mining projects across South Africa. Mining projects
includes a coal mine in Mpumalanga and a natural gas extraction mine in the Northern Cape.
Coal mine – Mpumalanga
To increase the cash flow of Dimba Mining Ltd, the managers of Dimba Mining Ltd decided to sell the
assets of the coal mine, in a single transaction. On 30 September 2021, all the criteria to classify the
disposal group as held for sale, as stipulated in IFRS 5, Non-current Assets Held for Sale and
discontinued operations, were met. The sale is expected to be completed by 30 April 2022, for cash.
The fair value less cost to sell of the disposal group on 30 September 2021 and 28 February 2022
amounted to R2 400 000 and R2 470 000 respectively.
The following is an extract from the trial balance of Dimba Mining Ltd for the year ended
28 February 2021:
DR CR
Note R R
Coal mine - Mpumalanga
Investment property (fair value) 1 1 850 000
Machinery (drilling riggs) 2 470 128
Intangible asset 3 ?
Inventory 4 50 000
Trade creditors 5 135 500
The following notes relate to the assets that form part of the coal mine:
Note 1:
Investment property consists of land that was held for capital appreciation and was correctly accounted
for at year end in terms of IAS 40, Investment Property. The fair value of land was determined to be
R1 855 000 and R1 905 000 respectively on 30 September 2021 and 28 February 2022. The fair values
were determined by an independent sworn appraiser.
Note 2:
Dimba Mining Ltd originally purchased the drilling rigs on 1 March 2019 at a cost of R665 500. The
drilling rigs was shipped to the mine in Mpumalanga at a cost of R25 300. The drilling rigs was available
for use, as intended by management, on 1 April 2019.
Note 3:
Dimba Mining Ltd holds the exclusive rights to the Tunnel Vision Software in South Africa. Tunnel Vision
is used to operate tunnel boring machines, with state-of-the-art precision. The exclusive rights were
purchased at a cost of $35 000 on 1 June 2018 and was available for use, as intended by management,
on the same date. Legal fees amounting to R8 900 were paid, in cash, on 1 May 2018 in order to finalise
the transaction.
Dimba Mining Ltd purchased the rights for a period of 10 years, after which the rights can be sold for
R7 250.
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