FINANCIAL ACCOUNTING

PLEASE YOUR OWN ANSWERS AND MAKE IT PROFESSIONAL

PART B Mannenberg Ltd is a manufacturing company and its year-end is 31 December 2020. The following details are available relating to its fixed property: 1. Mannenberg Ltd acquired land, with an office building on 1 January 2020 for R3 000 000 cash (Land: R1 000 000, Building: R2 000 000). Mannenberg also paid agent's commission of R45 000 and legal fees of R15 000. 2. For the period from 1 January 2020, Mannenberg Ltd made improvements to the building amounting to R100 000. The subsequent expenditure meets the subsequent recognition criteria, as contained in IAS 40. 3. The land and buildings were available for use and rented out to the tenant on 31 March 2020. The tenant took occupation of the building on 1 April 2020. 4. At year-end, Mr Content, an independent sworn appraiser revalued the land at R1 620 000 and the building at R3 000 000. Mannenberg Ltd values investment property using fair value model, in terms of IAS 40. REQUIRED: Disclose the above-mentioned information in the statement of financial position of Mannenberg Ltd on 31 December 2020 and in the notes for the year ended on that date. Your answer must comply with the requirements of International Financial Reporting Statements (IFRS). (10) Ignore comparative figures and the note on accounting policy. All calculations must be shown