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CP has been conducting research into more advanced methods of malecturing some of its chemical products, 2011, they come with the corection of a pint

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CP has been conducting research into more advanced methods of malecturing some of its chemical products, 2011, they come with the corection of a pint located in Secunde. The plant became walle for use on 1 Juary 2019. At this date the expected future cost of restoring the environmental state de constructions required by w would be R10 millionThis coutis expected to be incurred at the end of the pluie of 5 years. The waste caused in the poor facturing e chemicals in the plant must be recycled here that the plant become for use this cost was res estimated by specialist who has many years of experience to be Now The director elected a provision amounting to 115 montespecto se en the financial statement on 31 December 2013 O 11 December 2016 the directions have revised the other. The 310 is now revised to NB 13 while the mined to Non The coming market related pretas interest rate is 12 persons Assume that time value of money in material for a periods more than three months REQUIRED Discuss the appropriate classification of the information Teute to the chemical plant in the financial statements of ICP for the yeaded 31 December 2020 in terms of 5 (15 Mas) Accounting pool, changer accounts and more PARTS (10 marks) M. Sakong in se Managing Director of thiengo lumind a company specializing in solving murders. Shikongo Limited and a large amount of very conly forensic equipment . The forensic equipment was purchased on 1 Apr 2017 out of 600000 . All the time it was determined at the one would be descated on a straight over a year period to al residuale . The depreciation policy is consisten the wear and tearowance rated by the tax authorities On1 Apr 2019, el fe of the forescupent was se estimated to be 10 years . Shikongo Limited the location method to account for changes in accounting estimates The taste hos semained see the company's morgon REQUIRED Show how the boventioned foration would be closed in the notes to the financial statements of Shoge Limited for the younded 31 March 2030 ICP has been conducting research into more advanced methods of manufacturing some of its chemical products. In 2018, they commenced with the construction of a plant located in Secunda. The plant became available for use on 1 January 2019. At this date, the expected future cost of restoring the environment to its natural state due to construction, as required by law, would be R10 million This cost is expected to be incurred at the end of the plant's life of 5 years. The waste caused in the process of manufacturing the chemicals in the plant must also be recycled at the end of 5 years. At the date the plant became available for use, this cost was reasonably estimated by an environmental specialist, who has many years of experience, to be N$ 5 million The directors reflected a provision amounting to NS 15 million with respect to the above in the financial statements on 31 December 2019. On 31 December 2016, the directors have revised their initial estimates of the above. The N$10 million is now revised to N$ 13 million while the N$ 5 million is revised to N$ 7 million The nominal market-related pre-tax interest rate is 12% per annum. Assume that time value of money is material for all periods more than three months. REQUIRED: Discuss the appropriate classification of the information relating to the chemical plant in the financial statements of ICP for the year ended 31 December 2020 in terms of IAS 8 Accounting policies, changes in accounting estimates and errors. (15 Marks) QUESTION 3 (25 marks) PARTA (15 marks) ICP has been conducting research into more advanced methods of manufacturing some of its chemical products. In 2018, they commenced with the construction of a plant located in Secunda. The plant became available for use on 1 January 2019. At this date, the expected future cost of restoring the environment to its natural state due to construction, as required by law, would be R10 million. This cost is expected to be incurred at the end of the plant's life of 5 years. The waste caused in the process of manufacturing the chemicals in the plant must also be recycled at the end of 5 years. At the date the plant became available for use, this cost was reasonably estimated by an environmental specialist, who has many years of experience, to be N$ 5 million. The directors reflected a provision amounting to N$ 15 million with respect to the above in the financial statements on 31 December 2019. On 31 December 2016, the directors have revised their initial estimates of the above. The N$10 million is now revised to N$ 13 million, while the N$ 5 million is revised to N$ 7 million. The nominal market-related pre-tax interest rate is 12% per annum. Assume that time value of money is material for all periods more than three months. REQUIRED: Discuss the appropriate classification of the information relating to the chemical plant in the financial statements of ICP for the year ended 31 December 2020 in terms of IAS 8 Accounting policies, changes in accounting estimates and errors. (15 Marks) CP has been conducting research into more advanced methods of malecturing some of its chemical products, 2011, they come with the corection of a pint located in Secunde. The plant became walle for use on 1 Juary 2019. At this date the expected future cost of restoring the environmental state de constructions required by w would be R10 millionThis coutis expected to be incurred at the end of the pluie of 5 years. The waste caused in the poor facturing e chemicals in the plant must be recycled here that the plant become for use this cost was res estimated by specialist who has many years of experience to be Now The director elected a provision amounting to 115 montespecto se en the financial statement on 31 December 2013 O 11 December 2016 the directions have revised the other. The 310 is now revised to NB 13 while the mined to Non The coming market related pretas interest rate is 12 persons Assume that time value of money in material for a periods more than three months REQUIRED Discuss the appropriate classification of the information Teute to the chemical plant in the financial statements of ICP for the yeaded 31 December 2020 in terms of 5 (15 Mas) Accounting pool, changer accounts and more PARTS (10 marks) M. Sakong in se Managing Director of thiengo lumind a company specializing in solving murders. Shikongo Limited and a large amount of very conly forensic equipment . The forensic equipment was purchased on 1 Apr 2017 out of 600000 . All the time it was determined at the one would be descated on a straight over a year period to al residuale . The depreciation policy is consisten the wear and tearowance rated by the tax authorities On1 Apr 2019, el fe of the forescupent was se estimated to be 10 years . Shikongo Limited the location method to account for changes in accounting estimates The taste hos semained see the company's morgon REQUIRED Show how the boventioned foration would be closed in the notes to the financial statements of Shoge Limited for the younded 31 March 2030 ICP has been conducting research into more advanced methods of manufacturing some of its chemical products. In 2018, they commenced with the construction of a plant located in Secunda. The plant became available for use on 1 January 2019. At this date, the expected future cost of restoring the environment to its natural state due to construction, as required by law, would be R10 million This cost is expected to be incurred at the end of the plant's life of 5 years. The waste caused in the process of manufacturing the chemicals in the plant must also be recycled at the end of 5 years. At the date the plant became available for use, this cost was reasonably estimated by an environmental specialist, who has many years of experience, to be N$ 5 million The directors reflected a provision amounting to NS 15 million with respect to the above in the financial statements on 31 December 2019. On 31 December 2016, the directors have revised their initial estimates of the above. The N$10 million is now revised to N$ 13 million while the N$ 5 million is revised to N$ 7 million The nominal market-related pre-tax interest rate is 12% per annum. Assume that time value of money is material for all periods more than three months. REQUIRED: Discuss the appropriate classification of the information relating to the chemical plant in the financial statements of ICP for the year ended 31 December 2020 in terms of IAS 8 Accounting policies, changes in accounting estimates and errors. (15 Marks) QUESTION 3 (25 marks) PARTA (15 marks) ICP has been conducting research into more advanced methods of manufacturing some of its chemical products. In 2018, they commenced with the construction of a plant located in Secunda. The plant became available for use on 1 January 2019. At this date, the expected future cost of restoring the environment to its natural state due to construction, as required by law, would be R10 million. This cost is expected to be incurred at the end of the plant's life of 5 years. The waste caused in the process of manufacturing the chemicals in the plant must also be recycled at the end of 5 years. At the date the plant became available for use, this cost was reasonably estimated by an environmental specialist, who has many years of experience, to be N$ 5 million. The directors reflected a provision amounting to N$ 15 million with respect to the above in the financial statements on 31 December 2019. On 31 December 2016, the directors have revised their initial estimates of the above. The N$10 million is now revised to N$ 13 million, while the N$ 5 million is revised to N$ 7 million. The nominal market-related pre-tax interest rate is 12% per annum. Assume that time value of money is material for all periods more than three months. REQUIRED: Discuss the appropriate classification of the information relating to the chemical plant in the financial statements of ICP for the year ended 31 December 2020 in terms of IAS 8 Accounting policies, changes in accounting estimates and errors. (15 Marks)

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