FAC2601 ASSIGNMENT 01 OF 2021
DUE DATE : 21-May-21
UNIQUE NUMBER: 645062
1. 3
Total shares in issue on 31 December 2020: [R10000000/ R0.50)+1500000] = 11 500000
Capitalisation shares : 1/5 X 11500000 shares = 2300000
Rand - value of capitalisation shares: 2300000 shares X R0.65 = R1495 000
2. 1
Shares undrwriten: [65% X R750 000] 487500
Shares taken by the market [65%X680000] -442000
45500
Underwriter's liability [R15 X 45500 shares] 682500
3. 1
Users’ decisions involve decisions about:
-buying, selling or holding equity or debt instruments
-providing or settling loans and other forms of credit
-voting, or otherwise influencing management’s actions
4. 2
Relevance of information provided by a measurement basis is affected by:
1. characteristics of the asset or liability
-the variability of cash flows
-sensitivity of the value to market factors or other risks
-for example, amortised cost cannot provide relevant information about a deriviative
2. contribution to future cash flows
-whether cash flows are produced directly or indirectly in combination with other
economic resources
-the nature of the entity’s business activities
5. 4
DUE DATE : 21-May-21
UNIQUE NUMBER: 645062
1. 3
Total shares in issue on 31 December 2020: [R10000000/ R0.50)+1500000] = 11 500000
Capitalisation shares : 1/5 X 11500000 shares = 2300000
Rand - value of capitalisation shares: 2300000 shares X R0.65 = R1495 000
2. 1
Shares undrwriten: [65% X R750 000] 487500
Shares taken by the market [65%X680000] -442000
45500
Underwriter's liability [R15 X 45500 shares] 682500
3. 1
Users’ decisions involve decisions about:
-buying, selling or holding equity or debt instruments
-providing or settling loans and other forms of credit
-voting, or otherwise influencing management’s actions
4. 2
Relevance of information provided by a measurement basis is affected by:
1. characteristics of the asset or liability
-the variability of cash flows
-sensitivity of the value to market factors or other risks
-for example, amortised cost cannot provide relevant information about a deriviative
2. contribution to future cash flows
-whether cash flows are produced directly or indirectly in combination with other
economic resources
-the nature of the entity’s business activities
5. 4
