Summary
Summary ICB FRRF THEORY AND PRACTICAL NOTES
- Course
- FINANCIAL ACCOUNTING
- Institution
- FINANCIAL ACCOUNTING
ICB FRRF FULL THEORY SUMMARY WITH NOTES AND EXAMPLES ON COMPLETING PRACTICAL QUESTIONS
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FinancialReporting &
Regulatory
Frameworks
(FRRF)
ICB ASSIGNMENTS 1&2&3
QUESTION PAPER
Apr 2020 to Mar 2021
THIS PAPER CONSISTS OF 3 ASSIGNMENTS
ASSIGNMENT 1: 3 QUESTIONS
ASSIGNMENT 2: 3 QUESTIONS
ASSIGNMENT 3: 5 QUESTIONS
INSTRUCTIONS:
1. ICB Assignments form part of the formative mark and are to be completed in an open book environment.
2. This Question Paper Book contains all the questions for Assignments 1, 2 and 3.
3. All questions are to be completed in the Assignment Answer Book.
4. Check that you have the correct number of pages.
5. Please be neat, as illegible handwriting cannot be marked. You must write in blue or black ink. In practice it is
unacceptable for Bookkeepers to use correcting fluid (Tipp-ex). Marks will be deducted for the use of correction fluid.
6. All questions must be completed.
7. This question paper must NOT be returned to the ICB. You must retain this Assignment Question Paper Book.
8. Upon completion of your Final exam, remember to submit your Assignment Answer Book along with your Exam Answer
Book.
FRRF-ICBASG–QP-2020.v1 Page 1 of 14
, FINANCIAL REPORTING & REGULATORY FRAMEWORKS (FRRF)
ICB ASSIGNMENTS 1&2&3 QUESTION PAPER – APR 2020 TO MAR 2021
ASSIGNMENT 1
QUESTION 1 INTRODUCTION TO IFRS AND IAS
Indicate whether the following statements are True or False.
1.1. The Trustees of the IFRS Foundation perform governance and oversight functions over the Assignments of
the IFRS Foundation and IASB.
1.2. The responsibilities of the IFRS Foundation include the promotion of the use and rigorous application of
IFRSs.
1.3. The IASB perform governance and oversight functions over the Assignments of the IFRS Foundation.
1.4. Principle users of financial statements include: the public, government and customers.
1.5. The underlying assumptions of financial statements are going concern and faithful representation.
1.6. Qualitative characteristics include: relevance, reliability, comparability and the accrual basis.
1.7. The greater the time delay in reporting information, the more irrelevant it will become.
1.8. Financial statement elements are the broad classes in which transactions and other events are grouped
together according to their economic characteristics.
1.9. Probability means that there is certainty that future economic benefits will flow to/from the entity.
1.10. Measurement is a process of quantifying the non-monetary amounts at which elements are recognised and
carried in financial statements.
FRRF-ICBASG–QP-2020.v1 Page 2 of 14
, FINANCIAL REPORTING & REGULATORY FRAMEWORKS (FRRF)
ICB ASSIGNMENTS 1&2&3 QUESTION PAPER – APR 2020 TO MAR 2021
QUESTION 2 PRESENTATION OF FINANCIAL STATEMENTS
The pre-adjustment trial balance of Meander Ltd at 31 December 2019 is as follows:
Meander Ltd – Trial balance on 31 December 2019
Dr (R) Cr (R)
Ordinary shares (01/01/2019) 620 000
15% secured debentures 250 000
Retained earnings (01/01/2019) 280 400
General reserve (01/01/2019) 215 000
Land and buildings 620 000
Plant and equipment 982 000
Accumulated depreciation: buildings 40 000
Accumulated depreciation: plant and equipment 243 700
Inventory (01/01/2019) 216 000
Accounts payable 241 000
Accounts receivable 228 800
Bank 169 200
Sales 3 412 000
Purchases 2 431 200
Dividend (ordinary) 26 000
Debenture interest 14 000
Salaries and wages 612 600
Electricity 43 800
Sundry expenses 143 500
Suspense account 185 000
5 487 100 5 487 100
The following notes are applicable for the period:
1. Sundry expenses include insurance paid of R 16 000 for the 12 months to 30 June 2020.
2. Electricity bill, for two months to December 2019, of R 6 000 was received and paid on 15 January 2020.
This bill has yet to be accrued for.
3. Commission (expense) of R 15 000 has been included in the electricity account. No correction has yet
been made for this misallocation.
4. The suspense account comprises the following transactions:
R
Proceeds on share issue (152 000)
Proceeds on sale of plant (350 000)
Acquisition of Jems (Pty) Ltd 317 000
Closing balance – suspense account 185 000
FRRF-ICBASG–QP-2020.v1 Page 3 of 14
, FINANCIAL REPORTING & REGULATORY FRAMEWORKS (FRRF)
ICB ASSIGNMENTS 1&2&3 QUESTION PAPER – APR 2020 TO MAR 2021
5. The net assets of Haigs (Pty) Ltd were acquired on 1 April 2019, valued as follows:
R
Inventory 51 000
Available for sale financial assets 247 000
Net assets acquired 298 000
6. The balance of land and buildings at 1 January 2019 comprises:
R
Land 460 000
Buildings 160 000
The estimated useful life of buildings was 40 years.
7. Land and buildings were valued at R 800 000 on 31 December 2019.
8. Plant sold had a carrying value of R 335 000 on the date of disposal. This plant’s initial cost was
R 430 000.
9. Total depreciation on plant of R 50 000 is to be recorded for 2019.
10. Accruals still need to be made for:
R
Debenture interest 12 000
Transfer to general reserve 35 000
Audit fees 8 000
11. The year-end inventory count indicated that inventory to the value of R 286 000 was on hand at 31
December 2019.
Required:
Prepare a statement of financial position, a statement of comprehensive income using the function method to
classify expenses and a statement of changes in equity, based on the information provided for the year ended 31
December 2019. (ignore tax)
FRRF-ICBASG–QP-2020.v1 Page 4 of 14
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