Distinctive Financial Reporting
FAC3702
Semesters 1 & 2
Department of Financial Accounting
IMPORTANT INFORMATION:
This tutorial letter contains
... [Show More] all the tutorial matter of all the learning units. Please
register on myUnisa, activate your myLife e-mail address and make sure that you
have regular access to the myUnisa module website, FAC3702-2021-S1/S2, as
well as your group website.
Note: This is an online module and therefore it is available on myUnisa.
However, in order to support you in your learning process, you will also
receive some study material in printed format.
FAC3702/501/3/2021
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CONTENTS
INTRODUCTION .................................................................................................................. iv
LECTURERS AND CONTACT DETAILS .................................................................................... iv
LEARNING UNIT 1 – PROPERTY, PLANT AND EQUIPMENT ................................................... 2
LEARNING UNIT 2 – INVESTMENT PROPERTY ..................................................................... 45
LEARNING UNIT 3 – INTANGIBLE ASSETS ............................................................................. 74
LEARNING UNIT 4 – IMPAIRMENT OF ASSETS ................................................................... 107
LEARNING UNIT 5 – NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED
OPERATIONS ........................................................................................ 135
LEARNING UNIT 6 – THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES ...... 173
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INTRODUCTION
Dear Student,
Attached please find the following learning units:
Learning unit 1 – Property, plant and equipment (IAS 16)
Learning unit 2 – Investment property (IAS 40)
Learning unit 3 – Intangible assets (IAS 38)
Learning unit 4 – Impairment of assets (IAS 36)
Learning unit 5 – Non-current assets held for sale and discontinued operations (IFRS 5)
Learning unit 6 – The effects of changes in foreign exchange rates (IAS 21)
LECTURERS AND CONTACT DETAILS
Please use only the following e-mail address for all communication with the lecturers:
[email protected]
[email protected]
Please use only the following telephone numbers for all communication with your lecturers:
Lecturers Office number Telephone number
Mrs M Evans AJH van der Walt 2-55 (012) 429 8606
Mr D Khumalo AJH van der Walt 2-43 (012) 429 4408
Mrs M Els AJH van der Walt 2-58 (012) 429 8766
FAC3702/501
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FAC3702
Distinctive Financial
Reporting
PROPERTY, PLANT AND
EQUIPMENT [IAS 16]
LEARNING UNIT 1
2
LEARNING UNIT 1 – PROPERTY, PLANT AND EQUIPMENT
LEARNING OUTCOMES
Once you have studied and completed this course material, you should be able to:
account for property, plant and equipment, and depreciation in the financial statements of an
entity in terms of the requirements of International Financial Reporting Standards.
account for revaluations of property, plant and equipment in the financial statements of an
entity in terms of the requirements of International Financial Reporting Standards.
account for the deferred tax and tax implications in respect of property, plant and equipment.
OVERVIEW
This learning unit will be discussed under the following sections:
A PROPERTY, PLANT AND EQUIPMENT
1.1 Objective – IAS 16.1
1.2 Scope – IAS 16.2–5
1.3 Definitions – IAS 16.6
1.4 Recognition of property, plant and equipment – IAS 16.7–14
1.4.1 Initial costs – IAS 16.11
1.4.2 Subsequent costs – IAS 16.12–14
1.5 Measurement at recognition – IAS 16.15–28
1.5.1 Elements of cost – IAS 16.16–22
1.5.2 Measurement of cost – IAS 16.23–28
1.6 Measurement after recognition – IAS 16.29–66
1.6.1 Cost model – IAS 16.30
1.6.2 Revaluation model – IAS 16.31–42
1.6.3 Depreciation – IAS 16.43–62
1.6.4 Impairment – IAS 16.63
1.6.5 Compensation for impairment – IAS 16.65–66
1.7 Derecognition – IAS 16.67–72
B REVALUATION MODEL – IAS 16.31–42
1.8 Introduction
1.9 Frequency of revaluations
1.10 Revaluation methods
1.10.1 Change in accounting policy
1.10.2 Residual value
1.10.3 Estimated useful life
1.10.4 Determination of replacement value
1.11 Revalue an entire class of property, plant and equipment – IAS 16.36–38
1.12 Revaluation surplus – IAS 16.39–42
1.13 Further examples
1.14 Summary of revaluations
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C DISCLOSURE – IAS 16.73–79
1.15 Disclosure requirements for the cost – and the revaluation model
1.16 Further disclosure requirements
1.17 Specific disclosure requirements for the revaluation model
1.18 Further relevant information for users of financial statements
D TAX IMPLICATIONS
1.19 Capital Gains Tax (CGT)
1.20 Deferred tax
1.21 Recovery of revalued non-depreciable assets
E COMPREHENSIVE EXAMPLES [Show Less]