FAC1602/101/3//2024

Tutorial Letter 101/3/2024

Elementary Financial Accounting

Reporting
FAC1602

Semester 1 and 2

Department of Financial Accounting

This tutorial letter contains important information about your module.

BARCODE
 CONTENTS
Page

1 INTRODUCTION ............................................................................................................................ 3
2 PURPOSE AND OUTCOMES........................................................................................................ 4
2.1 Purpose .......................................................................................................................................... 4
2.2 Outcomes ....................................................................................................................................... 4
3 CURRICULUM TRANSFORMATION ............................................................................................ 4
4 LECTURER(S) AND CONTACT DETAILS .................................................................................... 4
4.1 Lecturer(s) ...................................................................................................................................... 4
4.2 Department ..................................................................................................................................... 5
4.3 University ........................................................................................................................................ 5
5 RESOURCES ................................................................................................................................. 5
5.1 Prescribed book(s).......................................................................................................................... 5
5.2 Recommended book(s) .................................................................................................................. 5
5.3 Electronic reserves (e-reserves) ..................................................................................................... 5
6 STUDENT SUPPORT SERVICES ................................................................................................. 6
6.1 First-Year Experience Programme @ Unisa .................................................................................. 6
7 STUDY PLAN ................................................................................................................................. 7
8 PRACTICAL WORK....................................................................................................................... 7
9 ASSESSMENT ............................................................................................................................... 7
9.1 Assessment criteria ........................................................................................................................ 7
9.2 Assessment plan .......................................................................................................................... 10
9.3 Assessment due dates ................................................................................................................. 11
9.4 Submission of assessments ......................................................................................................... 11
9.5 The assessment ........................................................................................................................... 11
9.6 Other assessment methods .......................................................................................................... 13
9.7 The examination ........................................................................................................................... 13
10 ACADEMIC DISHONESTY .......................................................................................................... 13
10.1 Plagiarism ..................................................................................................................................... 13
10.2 Cheating ....................................................................................................................................... 13
10.3 More information about plagiarism can be downloaded on the link below ................................... 13
11 STUDENT WITH DISABILITY ...................................................................................................... 13
12 FREQUENTLY ASKED QUESTIONS.......................................................................................... 14
13 SOURCES CONSULTED............................................................................................................. 14
14 IN CLOSING ................................................................................................................................. 14

2
 FAC1602/101/3/2024

Dear Student

1 INTRODUCTION
It is a pleasure to welcome you as a student to FAC1602. We hope that you will find your studies
particularly stimulating and rewarding this semester and that you will achieve success. We will do
our best to make your study of this module successful. You will be well on your way to success if
you start studying early in the semester and resolve to do the assessments properly.

The semester that you register for will be indicated on your registration documentation. Please
ensure that you are registered for the correct semester, as you are obliged to do all the
assessments for that semester.

Should you be faced with specific subject content problems in your studies, please do not
hesitate to consult us by letter, e-mail, telephone or personally (by appointment).

In this tutorial letter, we would like to draw your attention to several very important matters, and
we request you pay careful attention to them.

You will receive several announcements during the semester. This tutorial letter (TL101/3/2024)
or an announcement is our way of communicating with you about teaching, learning and
assessment. Right from the start we would like to point out that you must read all the tutorial
letters and announcements you receive during the semester immediately and carefully, as
they always contain important and, sometimes, urgent information.

We urge you to read this tutorial letter carefully and to keep it at hand when working through the
study material, doing the assessments and addressing questions to your lecturers.

In this tutorial letter, you will find a scheme of work, resources available, information on your
assessments, assessment criteria as well as instructions for the preparation and submission of
the assessments. This tutorial letter also provides all the information you may need with regard
to the prescribed study material and other resources and how to obtain it. Please study this
information carefully and make sure that you obtain the prescribed material as soon as possible.
We also include certain general and administrative information about this module.

Because this is a fully online module, you will need to use myModules to study and
complete the learning activities for this module. Visit the website for FAC1602 on
myModules frequently to download your study material or study by reading through the
online content.

It is important to use myModules and the internet regularly. You must be registered on myModules
to be able to submit assessments online, gain access to the library functions and various learning
resources and download study material. You can also “chat” to your fellow students about your
studies and the challenges you encounter and participate in online discussion forums. MyModules
provides you with additional opportunities to take part in activities and discussions of relevance
to your module topics, assessments, marks and examinations.

We trust that you will enjoy this module and wish you all the best!

3
2 PURPOSE AND OUTCOMES
2.1 Purpose

The purpose of this module is to introduce students to financial accounting and reporting referring
to some of the International Accounting Standards issued by the International Accounting
Standards Board. In this module the focus will be on financial reporting represented mainly by
financial statements of partnerships, close corporations and companies.
2.2 Outcomes

You must be able to demonstrate an understanding of the nature, composition and functions of
financial statements for partnerships, close corporations and companies. You must also be able
to record the accounting entries for the formation of, admittance to, retirement or death of a
partner and the liquidation of partnerships. Furthermore, you should be able to record the
accounting entries to the capital structure of companies. You should be able to record the
transactions relating to businesses with branches and to know how to record the transactions
between head office and the branch.

3 CURRICULUM TRANSFORMATION
Unisa has implemented a transformation charter based on five pillars and eight dimensions. In response
to this charter, we have placed curriculum transformation high on the teaching and learning agenda.
Curriculum transformation includes the following pillars: student-centred scholarship, the pedagogical
renewal of teaching and assessment practices, the scholarship of teaching and learning, and the infusion
of African epistemologies and philosophies. These pillars and their principles will be integrated at both
programme and module levels as a phased-in approach. You will notice a marked change in the teaching
and learning strategy implemented by Unisa, together with how the content is conceptualised in your
modules. We encourage you to embrace these changes during your studies at Unisa in a responsive way
within the framework of transformation.

4 LECTURER(S) AND CONTACT DETAILS

4.1 Lecturer(s)

The lecturers responsible for this module are listed below. Remember to have your student
number at hand when you contact a lecturer. Lecturers are available for telephone enquiries from
8:00 to 16:00 on weekdays.
The following are lecturers responsible for the module:
Mr S Mnguni (Module leader)
Mr M Seabi
Ms T Stellenboom
Mr P Maraisane

Direct all queries about the content of this module that are not of an administrative nature to the
lecturers. Please have your study material and student number at hand when you contact us.

You can also communicate with your lecturers via e-mail. Please use the following e-mail address:
[email protected] or use the “contact us” function on myModules.

4
 FAC1602/101/3/2024

We will respond promptly to e-mails forwarded to this e-mail address, in most cases within one
working day.

4.2 Department

Student information hub

If you have any registration or administrative queries relating specifically to the College of
Accounting Sciences (CAS), you can direct your query via the following e-mail address or
telephone numbers:
CAS specific enquiry e-mail for the College is:
• [email protected].
CAS specific enquiry telephone number for the College is:
• 012 429 4211
College Information Coordinator

• Ms C Tuge: (012) 429 2233

4.3 University

You will find general Unisa contact details in the Study@Unisa brochure, which can be find online
on myModules. Remember to mention your student number when contacting Unisa.

5 RESOURCES
5.1 Prescribed book(s)

About Financial Accounting, Volume 2, 9th Edition by Doussy F, et al. LexisNexis

Butterworths. Durban. 2023.

Please consult the list of official booksellers and their addresses listed in Study@Unisa. If you
have any difficulty obtaining books from these bookshops, please contact the Prescribed Books
Section.

5.2 Recommended book(s)

There are no recommended books for this module.

5.3 Electronic reserves (e-reserves)

There are no e-reserves for this module.

5.4 Library services and resources information

The Unisa Library offers a range of information services and resources:

5
 • For brief information, go to https://www.unisa.ac.za/library/libatglance
• For more detailed Library information, go to
http://www.unisa.ac.za/sites/corporate/default/Library
• For research support and services (eg Personal Librarians and literature search
services), go to http://www.unisa.ac.za/sites/corporate/default/Library/Library-
services/Research-support

The Library has created numerous Library guides: http://libguides.unisa.ac.za

Recommended guides:

• Request and find library material/download recommended material:

http://libguides.unisa.ac.za/request/request
• Postgraduate information services: http://libguides.unisa.ac.za/request/postgrad
• Finding and using library resources and tools:
http://libguides.unisa.ac.za/Research_skills
• Frequently asked questions about the library:
http://libguides.unisa.ac.za/ask
• Services to students living with disabilities:
http://libguides.unisa.ac.za/disability

Important contact information:

• Ask a Librarian: https://libguides.unisa.ac.za/ask
• Technical problems accessing library online services: [email protected]
• General library related queries: [email protected]
• For queries related to library fines and payments: [email protected]

6 STUDENT SUPPORT SERVICES

The Study @ Unisa website is available on myModules: www.unisa.ac.za/brochures/studies

The website has all the tips and information you need to succeed at Unisa.

6.1 First-Year Experience Programme @ Unisa

For many students, the transition from school education to tertiary education is beset with anxiety.
This is also true for first-time students to Unisa. Unisa is a dedicated open distance and e-learning
institution. Unlike face-to-face/contact institutions, Unisa is somewhat different. It is a mega
university, and all our programmes are offered through a blended learning mode or fully online
learning mode. It is for this reason that we thought it necessary to offer first-time students
additional/extended support so that you can seamlessly navigate the Unisa teaching and learning
journey with little difficulty and few barriers. In this regard we offer a specialised student support
programme to students entering Unisa for the first time. We refer to this programme as Unisa’s
First-Year Experience (FYE) Programme. The FYE is designed to provide you with prompt and
helpful information about services that the institution offers and how you can access information.
The following FYE programmes are currently offered:

6
 FAC1602/101/3/2024

FYE Website Email Support

www.unisa.ac.za/FYE [email protected]

FYE1500
Post
myUnisa; Study
Registration
Referrals to Skills; Academic &
Orientation Digital Literacies;
other support
services i.e. etc
Counselling;
Reading & Writing
workshops

To ensure that you do not miss out on important academic and support communication from
the SRU, please check your myLife inbox regularly.

7 STUDY PLAN
Refer to the Study@Unisa brochure for information on general time management and planning
skills. A specific study plan for each assessment for the module will be posted on myModules.

8 PRACTICAL WORK
There is no practical work for this module.

9 ASSESSMENT
9.1 Assessment criteria

Specific
Assessment criteria
outcome
• Explain the acronyms IFRS, IAS, APB, FRSC and SAICA, and know what
they entail.
• Describe what the concept "Conceptual Framework" entails.
• List the specific purposes of the Conceptual Framework regarding the
preparation and presentation of financial statements.
Learning
• Explain the main objectives of financial statements per the Conceptual
outcome 1
Framework.
• Explain the underlying assumption when preparing financial statements per
the Conceptual Framework.
• Discuss the qualitative characteristics of financial statements per the
Conceptual Framework.
7
 • Explain what the Conceptual Framework implies when it refers to the
constraints in preparing financial statements as it is referred to in the
Conceptual Framework.
• Discuss the elements of financial statements as explained in the Conceptual
Framework and indicate which elements pertain to the statement of financial
position and which to the statement of profit or loss and other comprehensive
income.
• Discuss the concepts of recognition and disclosure of the elements
incorporated in financial statements, as explained in the Conceptual
Framework.
• Explain what is meant by the measurement of the elements of financial
statements by referring to the measurement methods discussed in the
Conceptual Framework.
• Explain what type of business ownership must comply with IFRS.
• Define each of the following terms per IAS 1:
- Fair presentation
- Going concern
- Accrual basis of accounting
- Materiality and aggregation
- Offsetting
- Frequency of reporting
- Comparative information
- Consistency of presentation
• List the individual statements that, per IAS 1, form the complete set of
financial statements of a reporting entity.
• Explain what is meant by the identification of financial statements.
• Explain what is meant by reporting period.
• Explain which items comprise current assets and current liabilities per IAS 1.
• List the items that must be presented on the face of the Statement of
Financial Position and the Statement of Profit or Loss and Other
Comprehensive Income respectively, by referring to IAS 1.
• List the items that can be presented on either the face of the Statement of
Financial Position and the Statement of Profit or Loss and Other
Comprehensive Income or in the notes to these statements for the particular
reporting period per IAS 1.
• Discuss the purpose of notes by referring to IAS 1.
• Discuss, according to IAS 1, the order in which items are disclosed as notes
to financial statements.
• Explain or define the following:
- A financial instrument
- A financial asset
- A financial liability
- Fair value
- A contract
• Distinguish between financial instruments, financial assets and financial
liabilities.
• Recognise, measure and present certain financial assets and liabilities in the
financial statements.
• Record adjustments in the financial statements of a sole proprietorship.
Learning • Prepare a statement of profit or loss and other comprehensive income of a
outcome 2 sole proprietorship.
• Prepare a statement of changes in equity of a sole proprietorship.
8
 FAC1602/101/3/2024

• Prepare a statement of financial position of a sole proprietorship.

• Draft the notes to the financial statements of a sole proprietorship
• Define a partnership.
• Explain the reasons why a partnership is formed.
• Discuss the contents of a partnership agreement.
Learning • Explain how a partnership can be established.
outcome 3 • Explain the factors that can lead to the dissolution of a partnership.
• Record the transactions of a partnership in the accounting records.
• Prepare the financial statements of a partnership according to the
requirements of IFRS, appropriate to the business of the partnership.
• Briefly describe what a change in the ownership structure of a partnership
entails.
• Mention events that cause a change in the ownership structure of a
partnership.
• Calculate the new profit-sharing ratio of a partnership.
Learning • Record a change in the ownership structure of a partnership by way of a
outcome 4 personal transaction.
• Record a change in the ownership structure of a partnership by way of a
transaction with the partnership as a business entity by applying the
accounting procedure that is based on the legal perspective.
• Prepare a statement of financial position for a new partnership at the date of
its formation according to the requirements of IFRS appropriate to the
business of the partnership, based on the legal perspective.
• Briefly discuss the Close Corporations Act 69 of 1984 (Close Corporations
Act) regarding matters concerning the attributes, registration, internal and
external relations, accounting records and annual financial statements, joint
Learning
liability of members and others for certain debts, the tax position of the close
outcome 5
corporation and its members, and the deregistration of a close corporation.
• Prepare the financial statements (except for a statement of cash flows) of a
close corporation according to IFRS or IFRS for SMEs.
• Discuss, in general terms, the purpose and importance of a statement of cash
flows.
• Explain the relationship between a statement of cash flows and the other
Learning financial statements.
outcome 6 • Prepare a statement of cash flows and the note regarding non-cash
transactions pertaining to investing activities and financing activities of a
sole proprietor, partnership close corporation and company according to
the requirements of IAS 7 by utilising information that is mainly obtained from
the other financial statements and relevant notes thereto.
• explain the concept of branches
• briefly explain the differences between dependent and independent branches
• identify the information to be included in the reports submitted by a dependent
branch to the head office
• record the transactions between a head office and a dependent branch in the
Learning
books of the head office where inventory sent to the branch is invoiced at
outcome 7
cost price
• record the transactions between a head office and a dependent branch in the
books of the head office where inventory sent to the branch is invoiced at
selling price
• record the transactions of a dependent branch pertaining to the following

9
 where inventory is invoiced at cost price or at selling price:
- Purchases of inventory by the branch
- Sales of inventory by the branch
- Inventory damaged or stolen at the branch
- Inventory sold by the branch at a discount
- Inter-branch inventory transactions
- Settlement discount granted to debtors of the branch
- Donations made by the branch
- Cash embezzled at the branch
- Inventory in transit between the branch and the head office
• identify and record a shortage or surplus in the inventory of a branch where
inventory is invoiced by the branch at selling price

9.2 Assessment plan

• To complete this module, you will be required to submit 5 assessments.

• All information on when and where to submit your assessments will be made available to you
via the myModules site for your module.

• Due dates for assessments, as well as the actual assessments are available on the
myModules site for this module.

• Your assessments will comprise a combination of theory, MCQs, matching and numeric
questions.

• There will be no final examination as only the five assessments will contribute towards your
final mark.

• This means if you miss the due date of an assessment, you will get naught for that particular
assessment and it will put more pressure on yourself to do well in the next assessment to be
able to pass the module. You require a final mark of 50% to pass FAC1602.

• The assessments will be timed and made available for submission on set dates and times
which will be communicated via myUniasa.

• It is doubly important that you frequently check your myLife student emails and
announcements on myModules for important information relating to this module.

• The assessment weighting for the module is as follows:

Contribution towards
Assignment Topics covered
your final mark

01 10% Study units 1 to 3

02 10% Study unit 4

03 20% Study unit 5

04 25% Study units 6 to 7

Self-
0%
assessment All study units

10
 FAC1602/101/3/2024

05 35% All study units

9.3 Assessment due dates

• There are no assessment due dates included in this tutorial letter.

• Assessment due dates will be made available to you on the landing page of myModules for
this module. We envisage that the due dates will be available to you upon registration.

• Please start working on preparing for your assessments as soon as you register for the
module.

• Log on to the myModules site for this module to obtain more information on the due dates for
the submission of the assessments.

9.4 Submission of assessments

• Unisa, as a comprehensive open distance e-learning institution (CODeL), is moving

towards becoming an online institution. You will therefore see that all your study material,
assessments and engagements with your lecturer and fellow students will take place
online. We use myUnisa as our virtual campus.

• The myUnisa virtual campus will offer students access to the myModules site, where
learning material will be available online and where assessments should be completed.
This is an online system that is used to administer, document, and deliver educational
material to students and support engagement between academics and students.

• The myUnisa platform can be accessed via https://my.unisa.ac.za. Click on the myModules
2024 button to access the online sites for the modules that you are registered for.

• The university undertakes to communicate clearly and as frequently as is necessary to

ensure that you obtain the greatest benefit from the use of the myModules learning
management system. Please access the announcements on your myModules site
regularly, as this is where your lecturer will post important information to be shared with
you.

• When you access your myModules site for the module/s you are registered for, you will
see a welcome message posted by your lecturer. Below the welcome message you will
see the assessment shells for the assessments that you need to complete. Some
assessments may be multiple choice, some tests, others written assessments, some forum
discussions, and so on. All assessments must be completed on the assessment shells
available on the respective module platforms.

• To complete quiz assessments, please log on to the module site where you need to
complete the assessment. Click on the relevant assessment shell (Assessment 1,
Assessment 2, etc.). There will be a date on which the assessment will open for you. When
the assessment is open, access the quiz online and complete it within the time available
to you. Quiz assessment questions are not included in this tutorial letter (Tutorial Letter
11
 101) and are only made available online. You must therefore access the quiz online and
complete it online where the quiz has been created.

• It is not advisable to use a cell phone to complete the quiz. Please use a desktop computer,
tablet or laptop when completing the quiz. Students who use a cell phone find it difficult to
navigate the Online Assessment tool on the small screen and often struggle to navigate
between questions and successfully complete the quizzes. In addition, cell phones are
more vulnerable to dropped internet connections than other devices. If at all possible,
please do not use a cell phone for this assessment type.

9.4.1 Types of assignments and descriptions

All assignments are defined as either optional, mandatory, compulsory, or elective.

• Elective assignments
- If not submitted, the student gets no mark for this item.
- The best of the required submissions will count.
• Mandatory assignments
- If not submitted, the student gets no mark for this item.
• Compulsory assignments
- If not submitted, the result on the student’s academic record will be absent.
• Optional assignments – You are encouraged as a student to do optional assignment
so that it may benefit your learning.

I. Elective assignments
a. the student is given a choice of which assignments within an identified group to submit,
only the best result(-s), the number of which is specified in advance, will contribute
towards the year mark.
b. elective assignments must also be grouped into an elective group.
c. for the student to select which assignment to submit, the elective assignments must be
grouped together. For such an elective group, relevant information must be provided to
the student, such as how many of the assignments must be submitted and how many
of the assignment marks should be combined into the year mark.
d. The selection criteria define how marks received for assignments in an elective group
are to be combined into the year mark. Three different criteria may be used for
calculating the year mark:
• The best mark should be used, or
• If the student submits fewer than the required number of assignments per group or
no assignment in a group, a mark of 0% will be used.
• 0% is awarded to all non-submitted or unmarked assessments. A best mark is
then calculated from all items.

II. Mandatory assignments

a. contribute to the year mark.
b. If a student fails to submit a mandatory assignment, no mark is awarded and the year
mark is calculated accordingly. The student will therefore forfeit the marks attached to
this assignment when the final mark for the module is calculated.
12
 FAC1602/101/3/2024

III. Compulsory Assessment

a. when not submitted, the student will fail a Continuous Assessment module but will be
shown as absent from the examination in the case of other modules.

Optional assignments – You are encouraged as a student to do optional assignment so that it

may benefit your learning.

9.5 The assessment

As indicated in section 9.2, you need to complete five assessments for this module. Details on
the assessments will be loaded on myModules.

9.6 Other assessment methods

There are no other assessment methods for FAC1602.

9.7 The examination

There will be no final examination for this module as it is on continuous assessment and as such
only the assessments will contribute towards the final mark.

10 ACADEMIC DISHONESTY
10.1 Plagiarism
Plagiarism is the act of taking the words, ideas and thoughts of others and presenting them as
your own. It is a form of theft which involves several dishonest academic activities, such as the
following:

• Cutting and pasting from any source without acknowledging the source.
• Not including or using incorrect references.
• Paraphrasing without acknowledging the original source of the information.
10.2 Cheating
Cheating includes, but is not limited to, the following:

• Completing assessments on behalf of another student, copying from another student

during an assessment or allowing a student to copy from you.
• Using social media (eg WhatsApp, Telegram) or other platforms to disseminate
assessment information.
Submitting corrupt or irrelevant files.
• Buying completed answers from “tutors” or internet sites (contract cheating).
10.3 More information about plagiarism can be downloaded on the link below
https://www.unisa.ac.za/sites/myModules/default/Study-@-Unisa/Student-values-and-rules

11 STUDENT WITH DISABILITY

The Advocacy and Resource Centre for Student with Disability ARCSWiD) provides an
opportunity for staff to interact with new and returning students with disabilities.
13
 • If you are a student with a disability and would like additional support or need additional time
for assessments, you are invited to contact us on [email protected] or call the lecturers
so that you can be assisted.

12 FREQUENTLY ASKED QUESTIONS

The Studies@Unisa brochure contains an A-Z guide of the most relevant study information.

13 SOURCES CONSULTED
No external resources consulted for this Tutorial Letter.

14 IN CLOSING
In spite of the care taken to ensure that all the study material is correct, you may still find some
minor typing errors. Should you come across errors or find that parts of the study material are not
clearly expressed, kindly inform us to enable us to make the necessary corrections.
We trust that you will enjoy this module and wish you success with your studies.
Kind regards

Mr S Mnguni (Module leader)

Mr P Maraisane
Ms T Stelleboom
Mr M Seabi

Module Telephone Number: 012 429 4176

Module E-mail Address: [email protected]

LECTURERS: ELEMENTARY FINANCIAL ACCOUNTING REPORTING (FAC1602)

14