FAC 3703 ASSIGNMENT 1

FAC3703 ASSIGNMENT 1 – SEMESTER 1 OF 2020 Ultra Speed Ltd Notes for the year ended 31 March 2019 1. Profit before tax Profit before tax is stated after taking the following items into account R Incomes Finance Income 85 406 Expenses Finance Cost Depreciation: Right of use asset 107 164 300 536 2. Leases 2.1. Right of use asset Equipment R Carrying amount at beginning of year [

1. 2 This is an asset based grant since the grant was provided in order to acquire non – current assets. 2. 5 R Government grant income (5 000 000 * 60% / 5) Change in accounting estimate (5 000 000 * 40% / 5 * 1 / 12) 600 000 (33 333) 566 667 3. 4 The government grant is recognized in profit or loss on a systematic basis over the useful life of the asset. Since this is an asset based grant, the grant will either be recognized as government grant income or just other income in the...