The balance of low value lease accrual that will be appearing in the SFP of Mudau Limited for the year ended 31 December 2021 will be A.3 000 B.1 500 C.4 500 D. Nil
Financial Accounting 2
1. Mudau entered into a contract with Denga for a lease of 24 laptops, the contract was entered on 1 April 2021, for two years, each item is of low value and Mudau limited applies the recognition exemption of IFRS 16 leases. The benefit delivered for Mudau limited from the lease agreement is constant over the lease period.
The following amounts are payable to Denga limited per the lease agreement:
From 1 April 2021 – 31 March 2022 R2 000 per month
From 1 April 2022 – 31 March 2023 R3 000 per month
Mudau limited has a 31 December year end.
The balance of low value lease accrual that will be appearing in the SFP of Mudau Limited for the year ended 31 December 2021 will be
A.3 000
B.1 500
C.4 500
D. Nil
2. Rockview limited had been facing liquidity problems for the past 3years. The financial director finally decided to call for a meeting and in the meeting the board members for Rockview concluded that the company was going to issue 1 million C5 10% debentures on 2 January 2008. The debentures were issued at a discount of C1 per debenture and will be redeemed on 31 December 2012 at a premium of C1.23 per debenture. The
The debenture liability on the 03 January 2003 will be
A.1 000 000
B.2 000 000
C.3 000 000
D. 4 000 000
E. 20 000 000
3. Which of the following was not a key factor to influence the court when considering whether exclusive possession existed in the case of Antoniades V Villiers (1990)?
A.The Fact the agreement was called a licence agreement
B.The quasi-matrimonial status of the occupants
C.The relatively small size of the accommodation
D. The fact that the clause to introduce others to share had never been exercised.
4. Assume klaas limited is required to pay residual guarantee (future Cost) of 75 000 in four years time from today. Using a financial calculator klaas limited incremental borrowing rate is 7%.
Calculate the present value of the future cost that will need to be capitalized to the value of RoU asset when calculating the initial measurement. Choose the correct answer from below options
A. 75 193.46
B.75 000
C. 70 093.46
D. None of the above
5. Assume Wayne limited initially measured and recognized RoU assets with a total value of 120 000 after signing the lease contract of a bus with Stark limited. The lease commenced at the beginning of Wayne limited financial year. Included in the lease agreement was
- The lease term is 5 years
- The useful life of the bus is 10years
- The bus will be transferred to Wayne limited at the end of the lease term.
Calculate the annual
6 In the mid of 2014, a new reporting standard was published in the aim of improving the treatment of the financial instruments which reporting standard is that?
A.IFRS 3
B. IFRS 9
C. IFRS 7
D. IFRS 10
7. Mudau entered into a contract with Denga for a lease of 24 laptops, the contract was entered on 1 April 2021, for 2years, each item is of low value and Mudau limited applies the recognition exemption of IFRS 16 leases. The benefit delivered for Mudau limited from the lease agreement is constant over the lease period.
The following amounts are payable to Denga limited per the lease agreement:
From 1 April 2021 – 31 March 2022 R2 000 per month
From 1 April 2022 – 31 March 2023 R3 000 per month
Mudau limited has a 31 December year end.
For the year ended 31 December 2021, lease payment will need to be recorded, therefore cash in the bank account will decrease by
A. 18 000
B. 22 500
C. 24 000
D. None of the above.
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