Aadalicanal informations 1. The followine rand values relate to itwenteries on hand as at the year end. 2. Fied production bveehead costs are allocated at RaS per unit based on norrial capocity of 2200 units. 3. Land conshts of 12.000 seuare metres situated in Illowo. tand was purchased eni Moweaher zodfifor A1 500000 . 2. Fixed production overhead costs are allocated at R35 per unit based on normal capacity of 2200 units. 3. Land consists of 12000 square metres situated in llovo. Land was purchased on 1 November 2016 for R: 500000. 4. The factory is depreciated using the straight- line method at 4% per annum. The factory was brought into use on 1 January 2017. 5. Depreciation is calculated according to the reducing balance method: Machinery at 7% Vehicles at 25% (20) iptuices, (\$) Q.2. Froure the Note io the fianial siatement fer menteriet Q23 Freare the Matement ef Coryehemale inceme for the ptar esdine 31 Auguth [15] zero accerding to the natuee el eapenie methed. Froper identication of the Ar anewes mun comply with the requrements of intemational EAancial Al calculationi munt be sheen as marks will be allocated. kovnd al zeiounts to the rearest rind. (Markisud Qurstien 3 Liquidi Lhd meie juices and ice lolies fee the childen's mwiet, Ar a birthday garby in October 2015 where its pridvets were serude a child had a serte allergic resction to one of the luices: The compary has arrady incurred $30000 in medical certs, with the tinal horeital bill for the dhild estinated so be RES 0o6. in is alye king aued by the parents of the chld for negleence tiquddad'y bowes hre indecated thet the company will more that ilifly lede the case. The Lempri buve estimused that the damatri ceulit be $00000. Beporting Sandards (iFn5), in particular iAs2 - inventeries. A caiculationt must be thswn ar marks will be allocated. kound all amounts to the pearest pand. Qupieions [Markstale] Hquids Ltd make juices and ice lolies for che chilren's matket. At a birthday party in October 2019 where its products were served a child had a severe allergic reacticn to one of the juices. The company has aleeady iocurred 20000 in medical corts, with the final hospital bill for the child estimated to be 865000 , it is also being sued by the parents of the child for negligence. Vquid ud.'s lamyers have indicated that the company will more than likely lose the case. The tanyers have estimated that the damages could be Asob 000 . The drecters of Lquid Itd thus decided at a meeting on 1 November 2019 that they would close three of their eutiets in Tshwane and concentrate on busines in the Western Cape. These three outiets had been operating at a loss for the past sk menths, and are expected to continue operating at a loss until they are closed. Two new eutlets will be opened in the Western Cape. Afer preparing a detalled five-year budget which ihows that the decision will be beneficial to the buiness, the directors formalled their declalob in a document and announced the contents to the employees in a general meeting on the 15 November 2019. On that date the directors also ataled that their plan would be implemented before Christmas of 2019, Retrenchment costs were is. netinghe folls is lis Hetell itriatitine tikis krimith cerisetid revilun inmi. 4hathath Arevist. 17: 11 teseminer dob? ftyts 74 eirithes Aaient pll earetiven btie = a:1 Thi quentencoeposs there indepindest parti ingreving ber mestinal trues and Endin new wures ncuesed in iesect of the patent in be cheert financid yad. the derkicement wat ceneleted en 1 Jyl 2 ches. Prepure the keind enty to recolnise the ectent in the freineial buemente of ahay std en 1 Ny 2060 . (4) wescect of a hew flis wiem in the decieptiend phaye * Sylariri of it apquest wbring enclusvelr an the propect: ripd but * Cmpleyte awarther leaftit d avo - General prertiras cont allocribe; ri13 000 * Specialiat tofedanty aervice 1439690 gente what valan lor tish t the wbcve fove eapetsiuges will te induded th the captallied cait ef the ear potem. Write dowen enly the amouris. nf the mosunt te be hifuded is Ner in rour epinitis then write been Nel. Q.1 Asimet eish of if following tee itient. (17) Q6.7.1. il a prepeity is pyrtly an metumet puspetiy and partly cowte. (2) arivelect and the proverty a sevara!le, how theold the qutth A I answers must comply with the requirements of International Financial Peporting Standards (IfRS), in particular IAS38 - Intangible assets. Answer each of the following questions. (15) Q.6.2.1 If a property is partly an investment property and party owner- (2) occupied, and the property is separable, how should the entity account for the property? Q.6.2.2 Where the payment of an investment property is deferred beyond (2) normal credit terms, how should the entity account for any additional payment above the cash cost of the asset? Q.6.2.3 Which two models may an entity opt for when accounting for (2) investment property? Q.6.2.4 If irwestment property that is leased out and carried using the fair (2) value model becomes owner-eccupied, what will the property's Initial cost for subsequent accounting be? Q.6.2.5. If inventories are transferred to investment property carried at fair (2) value, what will the accounting treatment be for any difference between the fair value and the prevlous carrying amount at the transfer date? Q.6.2.6 How will we recognise any falr value gain arising from a change in fair value of an investment property? Q.6.2.7 For investment property carried using the cost model, what is the (3) calculation to determine the carrying value? All answers must comply with the requirements of International Financial Reporting Standards (IFR5), in particular IAS16 - Property, plant and equipment. Aadalicanal informations 1. The followine rand values relate to itwenteries on hand as at the year end. 2. Fied production bveehead costs are allocated at RaS per unit based on norrial capocity of 2200 units. 3. Land conshts of 12.000 seuare metres situated in Illowo. tand was purchased eni Moweaher zodfifor A1 500000 . 2. Fixed production overhead costs are allocated at R35 per unit based on normal capacity of 2200 units. 3. Land consists of 12000 square metres situated in llovo. Land was purchased on 1 November 2016 for R: 500000. 4. The factory is depreciated using the straight- line method at 4% per annum. The factory was brought into use on 1 January 2017. 5. Depreciation is calculated according to the reducing balance method: Machinery at 7% Vehicles at 25% (20) iptuices, (\$) Q.2. Froure the Note io the fianial siatement fer menteriet Q23 Freare the Matement ef Coryehemale inceme for the ptar esdine 31 Auguth [15] zero accerding to the natuee el eapenie methed. Froper identication of the Ar anewes mun comply with the requrements of intemational EAancial Al calculationi munt be sheen as marks will be allocated. kovnd al zeiounts to the rearest rind. (Markisud Qurstien 3 Liquidi Lhd meie juices and ice lolies fee the childen's mwiet, Ar a birthday garby in October 2015 where its pridvets were serude a child had a serte allergic resction to one of the luices: The compary has arrady incurred $30000 in medical certs, with the tinal horeital bill for the dhild estinated so be RES 0o6. in is alye king aued by the parents of the chld for negleence tiquddad'y bowes hre indecated thet the company will more that ilifly lede the case. The Lempri buve estimused that the damatri ceulit be $00000. Beporting Sandards (iFn5), in particular iAs2 - inventeries. A caiculationt must be thswn ar marks will be allocated. kound all amounts to the pearest pand. Qupieions [Markstale] Hquids Ltd make juices and ice lolies for che chilren's matket. At a birthday party in October 2019 where its products were served a child had a severe allergic reacticn to one of the juices. The company has aleeady iocurred 20000 in medical corts, with the final hospital bill for the child estimated to be 865000 , it is also being sued by the parents of the child for negligence. Vquid ud.'s lamyers have indicated that the company will more than likely lose the case. The tanyers have estimated that the damages could be Asob 000 . The drecters of Lquid Itd thus decided at a meeting on 1 November 2019 that they would close three of their eutiets in Tshwane and concentrate on busines in the Western Cape. These three outiets had been operating at a loss for the past sk menths, and are expected to continue operating at a loss until they are closed. Two new eutlets will be opened in the Western Cape. Afer preparing a detalled five-year budget which ihows that the decision will be beneficial to the buiness, the directors formalled their declalob in a document and announced the contents to the employees in a general meeting on the 15 November 2019. On that date the directors also ataled that their plan would be implemented before Christmas of 2019, Retrenchment costs were is. netinghe folls is lis Hetell itriatitine tikis krimith cerisetid revilun inmi. 4hathath Arevist. 17: 11 teseminer dob? ftyts 74 eirithes Aaient pll earetiven btie = a:1 Thi quentencoeposs there indepindest parti ingreving ber mestinal trues and Endin new wures ncuesed in iesect of the patent in be cheert financid yad. the derkicement wat ceneleted en 1 Jyl 2 ches. Prepure the keind enty to recolnise the ectent in the freineial buemente of ahay std en 1 Ny 2060 . (4) wescect of a hew flis wiem in the decieptiend phaye * Sylariri of it apquest wbring enclusvelr an the propect: ripd but * Cmpleyte awarther leaftit d avo - General prertiras cont allocribe; ri13 000 * Specialiat tofedanty aervice 1439690 gente what valan lor tish t the wbcve fove eapetsiuges will te induded th the captallied cait ef the ear potem. Write dowen enly the amouris. nf the mosunt te be hifuded is Ner in rour epinitis then write been Nel. Q.1 Asimet eish of if following tee itient. (17) Q6.7.1. il a prepeity is pyrtly an metumet puspetiy and partly cowte. (2) arivelect and the proverty a sevara!le, how theold the qutth A I answers must comply with the requirements of International Financial Peporting Standards (IfRS), in particular IAS38 - Intangible assets. Answer each of the following questions. (15) Q.6.2.1 If a property is partly an investment property and party owner- (2) occupied, and the property is separable, how should the entity account for the property? Q.6.2.2 Where the payment of an investment property is deferred beyond (2) normal credit terms, how should the entity account for any additional payment above the cash cost of the asset? Q.6.2.3 Which two models may an entity opt for when accounting for (2) investment property? Q.6.2.4 If irwestment property that is leased out and carried using the fair (2) value model becomes owner-eccupied, what will the property's Initial cost for subsequent accounting be? Q.6.2.5. If inventories are transferred to investment property carried at fair (2) value, what will the accounting treatment be for any difference between the fair value and the prevlous carrying amount at the transfer date? Q.6.2.6 How will we recognise any falr value gain arising from a change in fair value of an investment property? Q.6.2.7 For investment property carried using the cost model, what is the (3) calculation to determine the carrying value? All answers must comply with the requirements of International Financial Reporting Standards (IFR5), in particular IAS16 - Property, plant and equipment