FAC3703/104/3/2014
Tutorial Letter 104/3/2014
Specific Financial Reporting
FAC3703
Semesters 1 and 2
Department of Financial Accounting
This tutorial letter contains FAC3703 lecturer’s contact details and
errata to learning unit 1 of tutorial letter 501.
Bar code
CONTENTS
1
INTRODUCTION ......................................................................................................................... 2
2
LECTURERS AND CONTACT DETAILS .................................................................................... 2
3
ERRATA ...................................................................................................................................... 3
1
INTRODUCTION
Dear Student
You will be receiving a few tutorial letters during this semester. A tutorial letter is our way of
communicating with you regarding teaching, learning and assessment.
In this tutorial letter you will find the errata to learning unit 1 of tutorial letter 501.
All the tutorial letters are available on the internet. Documents on the internet can be accessed via the
UNISA website, after registering as a “myUNISA” user. Refer to tutorial letter 101/3/2014 on how to
access the study material.
2
LECTURERS AND CONTACT DETAILS
Lecturers
Office number
Mr V Booi
Ms M de Villiers
Mr B Khanyeza
Mr A Steyn
Ms R van den Berg
AJH 2-60
AJH 2-66
AJH 2-64
AJH 2-70
AJH 2-56
Secretary/Administration officer
AJH 2-62
012 429-4246
This telephone number is a course specific number and will be answered by the
above mentioned lecturers. The telephone circle is set up to transfer a call to the
next lecturer in the circle should the first lecturer in the circle be busy with a call.
Please make use of the following email address which is specific to the FAC3703 module to ensure a
prompt reply:
Students registered for the first semester: FAC3703-14-S1@unisa.ac.za
Students registered for the second semester: FAC3703-14-S2@unisa.ac.za
2
FAC3703/104
3
ERRATA
There are errors on three of the pages of learning unit 1 in tutorial letter 501. The pages must be
replaced with the following:
Replace page 13 with the following:
Grant 4 [Income-based grant: Recognised as other income] – (based on the deferred income
principle)
Salaries [75 000 x 5]
Government grant
U
V
R
375 000
100 000
Calculation of deferred income to profit/loss
Salaries
20.8
20.9 [375 000 x 1.06]
20.10 [397 500 x 1.06]
W
X
375 000
397 500
421 350
1 193 850
Income to be recognised in terms of the government grant (based on information as at
01/01/2008)
Y
20.8 [375 000 x 100 000/1 193 850]
31 411
Z
20.9 [397 500 x 100 000/1 193 850]
33 296
d
20.10 [421 350 x 100 000/1 193 850]
35 293
100 000
Repayment of government grant 20.9
Deferred government grant beginning of year (33 296 + 35 293)
Deferred government grant after repayment (68 589 – 20 000)
68 589
48 589
R20 000 of the government grant received had to be repaid on 1 January 20.9 due to the dismissal
of one supervisor. The recognition of the remaining deferred government grant balance (R48 589)
as income must be based on four supervisors for 20.9 and 20.10.
Salaries
20.9 [(75 000 x 4) x 1.06]
20.10 [318 000 x 1.06]
a
318 000
337 080
655 080
Income to be recognised in future
20.9 [48 589 x 318 000/655 080]
20.10 [48 589 x 337 080/655 080]
b
e
23 587
25 002
48 589
Therefore: change in estimate [68 589 – 48 589]
c
20 000
3
THE DISCLOSURE WILL BE AS FOLLOWS:
KELUB LIMITED
EXTRACT FROM STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20.9
20.9
R
Notes
ASSETS
Non – current assets
Property, plant and equipment
3
4 804 000
EQUITY AND LIABILITIES
Non – current liabilities
Deferred government grant income
J-3xL
1 700 000
Current liabilities
Deferred government grant income
L+e
125 002
Notes
20.8
R
5 047 000
J-2xL+d
L+Z+T
1 835 293
225 917
Replace page 14 with the following:
KELUB LIMITED
EXTRACT FROM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 31 DECEMBER 20.9
Notes
20.9
Notes
20.8
R
R
Gross profit
xxx xxx
xxx xxx
2
2
Depreciation
(293 000)
(283 000)
L+b
L+Y
Other income
123 587
131 411
2
2
Administrative expenses
(702 379)
(737 621)
Profit before tax
xx xxx
xx xxx
Income tax expense
(xx)
(xx)
Profit for the year
xx xxx
xx xxx
Other comprehensive income
–
–
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
xx xxx
xx xxx
KELUB LIMITED
EXTRACT FROM THE NOTES FOR THE YEAR ENDED 31 DECEMBER 20.9
2. Profit before tax
Notes
20.9
R
20.8
R
b
L
23 587
100 000
Y
L
31 411
100 000
G+H+K
293 000
702 379
795 000
(92 621)
D+K
283 000
737 621
825 000
(87 379)
Profit before tax is shown after taking the following
into account:
Income
Income-based government grant: salaries
Asset-based government grant: admin building
Expenses
Depreciation
Employee benefits
Short-term employee benefits
Less: Government grant
4
a+R
T
O+W
S
FAC3703/104
Replace page 23 with the following:
The change in estimate to be disclosed will amount to R500 000, being the difference between the
income recognised of R254 510 and the income of R754 510, that would have been recognised, if the
grant was not repaid. Alternatively it could be calculated as follows:
(a) Adjustment to deferred government grant balance
R
754 510
(500 000)
254 510
Deferred government grant balance on 1/1/20.10:
Repayment of government grant on 1/1/20.10
Deferred government grant balance after repayment
(b) Deferred government grant to be recognised as income during 2010
R
254 510
Government grant received
The government grant must be recognised as income over three years, namely 20.8, 20.9 and 20.10.
The repayment took place on 1 January 20.10, which is the beginning of the final year. As a result the
entire government grant balance of R254 510 is recognised as income in 20.10.
Ref:/ FAC3703_2014_TL_104_3_E.docx
©
UNISA 2014
5