selfie ltd ( "selfie") is a rapidly growing company in the social media industry and is in the process of finalising its financial statements for the year ended 31 march 2014. at part of social responsibility initiative, selfie incorporated chainsmokers NPC ("chainsmokers") in january 2014. chainsmokers isa non-profit company (NPC) in terms of section 10 of the companies Act and is in the process of registering as a public benefit organisation (PBO). selfie holds all 10 of the issued shares in chainsmokers.

in terms of its memorandum of incorporation (MOI), chainsmokers' only mandate is to provide support and rehabilitation for individuals living with social media addiction (SMA). selfie has committed to pay R500 000 to chainsmokers on 1 may each year, escalating at 5% per year, in order fund chinsmokers' projects, as long as chainsmokers abides by the conditions set out in its MOI. this payment from selfie will be chainsmokers only source of income and the first payment will take place on 1 may 2014.

in terms of the agreement between chainsmokers and selfie, chainsmokers' projects ware designed, implemented and overseen by mr Alex Taggard, chainsmokers' only director. mr taggard is required to report retrospectively each April to selfie on how the payment from the preceding year has been spent, presenting a summary of the projects which ran during the year. following mr taggard 's presentation, selfie assesses whether the conditions set out in chainsmokers MOI have been complied with and whether the next annual payment will take place.

if, from the report back, it is evident that mr taggard has committed chainsmokers to projects with cumulative costs exceeding the payment made for the year, selfie is permitted to appoint a new temporary director to the board of chainsmokers to oversee the running of the projects until the shortfall has been recovered. however, given mr taggard's experience, it is unlikely that a temporary director would ever be required. as chainsmokers will only begin operations once the initial payment has been received from selfie, it has no income and expenses for the year ended 31 March 2014.

Discuss the appropriate accounting treatment of Chainsmokers in the Selfie group financial statements in the 2015 financial year.(You should assume that Chainsmokers has no impact on the 2014 group financial statements.) Include a brief description of any disclosure that may be required relating to Chainsmokers in the 2015 Selfie group financial statements.

guys this is the question i struggled sending a picture but that is the information that was given nothing more nothing less, just say you don't know the answer and we move on with our lives L O L