Exam (elaborations)
FAC3761 OCTOBER 2022 SOLUTION
- Institution
- University Of South Africa (Unisa)
This is a detailed memo with clear calculations and simple explanations to all examined principles .
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Question 1
a) Profit before tax
Profit before tax has been determined after taking the following items into account
R
Amortisation 247 500
Calculations
Cost of application
Cost- fair value of asset given up 3200 000
Software developer 350 000
Consultation fees (35000x3) 10500
3655000
(3655000−355 000)
Amortisation = *9/12= 247 500
10
b) To: Chief Financial (Ingonyama)
From: STUDENT
Subject: Dividend Declaration and Liquidation
The following deals with accounting treatment of the dividend declaration and
liquidation
The financial year end of Ingonyama is 30 June 2022 and the financial statements
were authorised for issue on 31 August 2022
All events happening after the 30 June 2022 but before date of authorisation (31
August 2022) will be events after the reporting period
Events after the reporting period can either be classified as adjusting or non-
adjusting events
An adjusting event is an event providing additional information on conditions that
existed at the end of the reporting period and these should be recognised by
adjusting the amounts in the financial statements irrespective of whether the fact
was known at the end of the reporting period
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