{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-28T01:08:12-04:00", "answer_date": "2024-05-28 01:08:12", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1810753", "url": "\/study-help\/questions\/question-2-thuso-pty-13-marks-thuso-pty-is-a-1810753", "question_creation_date_js": "2024-05-28T01:08:12-04:00", "question_creation_date": "May 28, 2024 01:08 AM", "meta_title": "[Solved] Question 2 (Thuso Pty) 13 Marks Thuso Pty | SolutionInn", "meta_description": "Answer of - Question 2 (Thuso Pty) 13 Marks Thuso Pty is a mining company located in the Limpopo province of South Africa. The com | SolutionInn", "meta_keywords": "question,2,thuso,pty,13,marks,mining,company,located,limpopo,province,south", "question_title_h1": " Question 2 (Thuso Pty) 13 Marks Thuso Pty is a mining company located in the Limpopo province of South Africa. The company mines phosphate", "question_title": " Question 2 (Thuso Pty) 13 Marks Thuso Pty is a mining", "question_title_for_js_snippet": "Question 2 (Thuso Pty) 13 Marks Thuso Pty is a mining company located in the Limpopo province of South Africa The company mines phosphate rock which is used to produce phosphoric acid and phosphate based granular fertilisers Thuso Pty has a financial year end of 30 June Due to the recent COVID 19 pandemic that has caused major losses for the company, the management of Thuso Pty has made the decision to close the mine on 31 December 2020 In a meeting on 30 May 2020 discussing the process of closing the mine, the mining engineer indicated that the South African Law for Mining, requires all mining companies to rehabilitate the land that they dug while mining She explained that rehabilitation is the process of closing all the mine holes that Thuso Pty had dug over the years She also presented a reliable valuation report of the holes which had indicated that it will cost the company R405 000 000 to rehabilitate the land on 31 December 2020 No further mining (digging) is to be done after the 30th of May 2020 The financial manager was not aware of this law and decided to do further research He found out that if the company does not close out the holes, the South African government would impose a fine 10 times higher than the cost of rehabilitating He is certain that an expense would have to be recognized at 30 June 2020, however, he is unsure of which other element will be affected Required Using the conceptual framework definitions discuss what other element should be affected in recognizing the rehabilitation costs on 30 June 2020 MARKS AWARDED FOR LOGIC 12 1 Litton", "question_description": "\"image", "transcribed_text": "Question 2 (Thuso Pty) 13 Marks Thuso Pty is a mining company located in the Limpopo province of South Africa. The company mines phosphate rock which is used to produce phosphoric acid and phosphate-based granular fertilisers. Thuso Pty has a financial year end of 30 June. Due to the recent COVID-19 pandemic that has caused major losses for the company, the management of Thuso Pty has made the decision to close the mine on 31 December 2020. In a meeting on 30 May 2020 discussing the process of closing the mine, the mining engineer indicated that the South African Law for Mining, requires all mining companies to rehabilitate the land that they dug while mining. She explained that rehabilitation is the process of closing all the mine holes that Thuso Pty had dug over the years. She also presented a reliable valuation report of the holes which had indicated that it will cost the company R405 000 000 to rehabilitate the land on 31 December 2020. No further mining (digging) is to be done after the 30th of May 2020. The financial manager was not aware of this law and decided to do further research. He found out that if the company does not close out the holes, the South African government would impose a fine 10 times higher than the cost of rehabilitating. He is certain that an expense would have to be recognized at 30 June 2020, however, he is unsure of which other element will be affected. Required: Using the conceptual framework definitions discuss what other element should be affected in recognizing the rehabilitation costs on 30 June 2020. MARKS AWARDED FOR LOGIC 12 1 Litton", "related_book": { "title": "Managerial Accounting", "isbn": "9780618777174, 618777180, 618777172, 978-0618777181", "edition": "8th Edition", "authors": "Susan V. Crosson, Belverd E. Needles", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/240.jpg", "uri": "\/textbooks\/managerial-accounting-8th-edition-240", "see_more_uri": "" }, "free_related_book": { "isbn": "9781839965685", "uri": "\/textbooks\/financial-accounting-preparing-financial-statements-study-text-1st-edition-9781839965685-182785", "name": "Financial Accounting Preparing Financial Statements Study Text", "edition": "1st Edition" }, "question_posted": "2024-05-28 01:08:12", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/a-the-following-decision-tree-classifies-drivers-into-different-types-658154", "description": "Discuss the differences between @classmethod , @staticmethod , and instance methods in Python.", "stars": 3 }, { "url": "\/present-the-case-for-and-the-case-against-a-system", "description": "Present the case for and the case against a system of floating exchange rates.", "stars": 3 }, { "url": "\/study-help\/statistics-for-experimentert\/23-prove-that-if-aa-t-i-then-aa-1967026", "description": "23. 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