QUESTION $3($CONTINUED$)$

All the criteria necessary for reclassification as a non$-$current asset held for sale were

met on this date. The following information was applied on this date:

R

Fair value $2559000$

Costs to sell $38000$

Value in use $2511000$

$4.$ Equipment that was purchased on $1$ October $2018$ at a cost R$747500($incl$\mathrm{.}15\%$ VAT$)$

was damaged due a small fire that occurred in the factory. The equipment is depreciated

at $12\%$ per annum on the reducing balance method. The following information on the

vehicle is available as at $31$ March $2022$:

R

Residual value $50000$

Value in use $365000$

Fair Value $($including $15\%$ VAT$)437000$

Cost to sell $($including $15\%$ VAT$)5750$

$5.$ SamApp Ltd purchased a building in $2018$ for R $5000000$ in Auckland park. Transfer

cost paid was $10\mathrm{.}5\%$ of the building value. This building is rented out as student

accommodation through a $10$ year operating lease at a rental of R$75000$ per month.

The residual value of the building at the end of its expected useful life is R$500000.$

Direct operating costs incurred during the current reporting period are R $300000.$ The

useful life of this building was estimated at $20$ years and it is the company policy to

depreciate buildings over the expected useful life using the straight$-$line method.

$6.$ SamApp Ltd has the following investment:

On $1$ December $2021,$ SamApp Ltd acquired $25250$ shares in ASA Ltd a technology

company listed on the JSE, at R$3\mathrm{.}80$ per share. The trading prices for these shares on

$31$ March $2022$ were R$5\mathrm{.}50$ per share. The shares were purchased for speculative

purposes.

Additional information

A sworn appraiser, who has experience with similar properties in the Auckalnd park

area, has placed the following fair value on the property purchased at $31$ March

$2022.$SamApp Ltd uses fair value model to measure investment property

Auckland park Building R$4$ million

REQUIRED:

$3\mathrm{.}1$ Present only the ASSETS section of the Statement of Financial Position for SamApp Ltd

for the financial reporting period ended $31$ March $2022$ to comply with the minimum

requirements of International Financial Reporting Standards $($IFRS$).(5)$

ACC$1$CP$2(2024)$

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Page $8$ of $10$

QUESTION $3($CONTINUED$)$

$3\mathrm{.}2$ Disclose the following notes to the financial statements of SamApp Ltd for the financial

reporting period ended $31$ March $2022$ to comply with the minimum requirements of

IFRS:

$-$ Property, plant and equipment $($total column not required$)$

$-$ Investment property

$-$ Lease commitment

$-$ Other financial assQUESTION $3$

$(50$ MARKS$)$

$(75$ MINUTES$)$

SamApp Ltd manufactures smart televisions. The financial manager requires your assistance

to prepare the financial statements for the reporting period ended $31$ March $2022.$ The

following information is presented to you:

Due to the increase in demand for SamApp televisions, it was decided to construct an

additional manufacturing plant. In order to finance the plant. A loan of R$2000000$ with

BNF Bank was taken out on $1$ June $2019.$ Had it not been for the construction of the

plant the loan would not have been obtained. Construction activities began on the $1$

August $2019.$ The construction of the plant was completed on $1$ January $2022.$ The plant

was available for use on $1$ March $2022.$

The following expenditure relates to the manufacturing plant:

Finance costs on the loan for the following periods are as follows:

Depreciation for the manufacturing plant is calculated using the straight line method over

a period of $20$ years. The residual value of the plant amounts to R$150000.$

SamApp Ltd acquired a machine on $1$ April $2019.$ The machine is held under a lease

agreement for $5$ years and is expected to have a useful life of $6$ years. Ownership is not

expected to transfer to SamApp after the lease agreement. The effective interest rate is

$15\%.$ The following correctly prepared information is provided:

SamApp current delivery vehicle has become too small and management have decided

to sell the vehicle $1$ December $2021.$details regarding the delivery vehicle are as below