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    FAC4863 NFA4863 Exam Paper 1 Required

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    Nosipho Nyathi
    The document provides an examination paper for an applied financial accounting course. It consists of two parts, with Part I asking students to prepare financial statement notes and journal entries, and Part II addressing tax implications of retirement, emigration, and estate duty. Students are asked to show their work, comply with IFRS, and communicate their answers clearly and logically.

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    FAC4863 NFA4863 Exam Paper 1 Required

    Uploaded by

    Nosipho Nyathi
    35 views3 pages
    The document provides an examination paper for an applied financial accounting course. It consists of two parts, with Part I asking students to prepare financial statement notes and journal entries, and Part II addressing tax implications of retirement, emigration, and estate duty. Students are asked to show their work, comply with IFRS, and communicate their answers clearly and logically.

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    Original Title

    FAC4863 NFA4863 Exam Paper 1 Required (1)

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    The document provides an examination paper for an applied financial accounting course. It consists of two parts, with Part I asking students to prepare financial statement notes and journal entries, and Part II addressing tax implications of retirement, emigration, and estate duty. Students are asked to show their work, comply with IFRS, and communicate their answers clearly and logically.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    35 views3 pages

    FAC4863 NFA4863 Exam Paper 1 Required

    Uploaded by

    Nosipho Nyathi
    The document provides an examination paper for an applied financial accounting course. It consists of two parts, with Part I asking students to prepare financial statement notes and journal entries, and Part II addressing tax implications of retirement, emigration, and estate duty. Students are asked to show their work, comply with IFRS, and communicate their answers clearly and logically.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    UNIVERSITY EXAMINATIONS

    REQUIRED

    October/November 2022

    FAC4863/NFA4863
    APPLIED FINANCIAL ACCOUNTING I

    FIRST PAPER

    100 Marks
    Duration: 3 Hours

    This paper consists of 3 pages (QUESTION 1).

    Instructions:

    The use of a non-programmable calculator is permissible.

    This examination paper remains the property of the University of South Africa.

    YOU HAVE 2,5 HOURS TO ANSWER THIS PAPER

    [TURN OVER]
    Page 2 of 3 FAC4863/NFA4863
    October 2022
    PAPER 1

    QUESTION 1

    REQUIRED
    Marks
    PART I

    (a) Prepare the property, plant and equipment note to the annual financial statements of 34
    KitchenHub Ltd for the year ended 30 September 2022, in terms of IAS 16.73(e).

    Communication skills: presentation 1


    Please note:
    • Comparative figures are not required.
    • The total column is not required.

    (b) Prepare the income tax rate reconciliation note, as required by IAS 12.81(c)(i), to the 10
    annual financial statements of KitchenHub Ltd for the year ended 30 September 2022.
    Your tax rate reconciliation should be based on the available information supplied.

    Please note:
    • Comparative figures are not required.
    Communication skills: presentation 1

    (c) Assume that the management of KitchenHub Ltd decided on 31 July 2022 to exercise 18
    the option included in the lease agreement between KitchenHub Ltd and ZoZo Ltd.
    Provide the journal entries to account for the lease agreement in the financial records
    of KitchenHub Ltd for the financial year ended 30 September 2022.

    Please note:
    • Provide cumulative journals for monthly recurring journals.
    • Journal narrations are not required.
    • Ignore taxation.
    Communication skills: presentation 1

    (d) Briefly discuss in principle the financial effect that the decision to lease the land 14
    (parking space) to KitchenHub Ltd would have on the annual financial statements of
    ZoZo Ltd (excluding the cash flow statement and the notes to the financial statements).

    Please note:
    • Your answer should not include any amounts.

    Communication skills: logical argument 1

    Please note:
    • Round off all amounts to the nearest Rand.
    • Your answer must comply with International Financial Reporting Standards (IFRS).

    [TURN OVER]
    Page 3 of 3 FAC4863/ NFA4863
    October 2022
    PAPER 1

    Marks
    PART II

    (a) Advise Mookamedi what his income tax implications would be if he elected to retire from 4
    his employment on 30 June 2022 and emigrated the following day. No supporting
    calculations are required. Assume that the tax legislation for future years will be the
    same as the tax legislation for the 2022 year of assessment.

    (b) Discuss how your advice in part II (a) would differ if Mookamedi was 10 years younger 5
    (thus 49 years old) and Mookamedi elected to resign from his employment on
    30 June 2022. No supporting calculations are required. Assume that the tax legislation
    for future years will be the same as the tax legislation for the 2022 year of assessment.

    (c) Mookamedi received R50 000 per month after he emigrated to Mauritius. Briefly discuss 3
    if he would be taxed in South Africa on the annuity received. No supporting calculations
    are required. Assume that the tax legislation for future years will be the same as the tax
    legislation for the 2022 year of assessment.

    (d) Discuss briefly (supported with calculations, where necessary) the estate duty 8
    implications of

    (i) the African Provident Fund lump sum payment;


    (ii) the Lookafteru Insurance payments; and
    (iii) Insurance Policy B
    if Mookamedi was to die on 1 June 2022.

    Ignore the provisos to the valuation of usufructuary and like interests.

    Please note:
    • Round off all amounts to the nearest Rand.

    © 2022
    UNISA

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