1According to the 2018 Conceptual Framework, which of the following criteria must be satisfied for an item to be recognized as an asset in the statement of financial position?
2Mashige LTD purchased a machine for R450,000 on 31 May 2019. It has a residual value of R55,000 and a 5-year useful life. For the financial year ended 30 June 2019, which of the following statements are correct?
3Bio LTD received R 1,500,000 on 29 December 2019 for services to be provided in January 2020. Which statements correctly describe the accounting treatment for the year ended 31 December 2019?
4Umnotho LTD classifies apartments under construction for 14 months as current assets (Inventories). Which of the following justify this treatment under IAS 1?
5Regarding the legal dispute Mashige LTD settled on 19 July 2019 for R 150,000 (dispute arose on 5 July 2019), which statements are correct for the reporting period ended 30 June 2019?
6Why is it generally inappropriate to recognize employees as assets under the Conceptual Framework?
7In the case of Bio LTD, if the materiality is R 450,000 and the accountant incorrectly recognized R 1,500,000 as revenue, what are the audit and accounting implications?
8According to IAS 1, which of the following are considered 'general features' of financial statements?
9Umnotho LTD reported a R400,000 deposit from a customer in profit for 2019 for an apartment to be built in 2020. Which journal entries are required to correct this at 31 December 2019?
10Based on Umnotho LTD's financial position (Negative Retained Earnings of R 1,000,000 and Current Liabilities exceeding Current Assets), what must be addressed regarding the 'Basis of Preparation'?
