Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PART B (10 marks) Mr. Shikongo is the Managing Director of Shikongo Limited, a company specializing in solving murders. Shikongo Limited owns a large amount
PART B (10 marks) Mr. Shikongo is the Managing Director of Shikongo Limited, a company specializing in solving murders. Shikongo Limited owns a large amount of very costly forensic equipment. 5 The forensic equipment was purchased on 1 April 2017 at a cost of N$ 600 000 . All the time it was determined that the equipment would be depreciated on a straight-line basis over a 6-year period to a nil residual value. The depreciation policy is consistent with the wear and tear allowance granted by the tax authorities . On 1 April 2019, the total life of the forensic equipment was re-estimated to be 10 years. Shikongo Limited uses the reallocation method to account for changes in accounting estimates . The tax rate has remained 30% since the company's inception REQUIRED: Show how the above-mentioned information would be disclosed in the notes to the financial statements of Shikongo Limited for the year ended 31 March 2020
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started