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FAC3703/203
FAC3703/203/1/2012




Tutorial Letter 203/1/2012
Specific Financial Reporting
FAC3703
Semester 1

Department of Financial Accounting
This tutorial letter contains important
information about your module.




Bar code




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, CONTENTS


1 INTRODUCTION ............................................................................................................................ 3

2 LECTURER AND CONTACT DETAILS ........................................................................................ 3

3 ERRATA TO THE STUDY GUIDE ................................................................................................. 4

4 SUGGESTED SOLUTION TO THE COMPULSORY ASSIGNMENT............................................ 4

4.1 COMPULSORY ASSIGNMENT 2 .......................................................................................... 4

5 EXAMINATION PAPERS WITH SUGGESTED SOLUTIONS ....................................................... 6

5.1 OCTOBER 2008 EXAMINATION QUESTION PAPER WITH SOLUTION............................. 6
5.2 MAY 2009 EXAMINATION PAPER WITH SOLUTIONS ...................................................... 20
5.3 OCTOBER 2009 EXAMINATION PAPER WITH SOLUTIONS ............................................ 32
5.4 MAY 2010 EXAMINATION PAPER WITH SOLUTION ........................................................ 48
5.5 OCTOBER 2010 EXAMINATION PAPER WITH SOLUTION .............................................. 62
5.6 MAY 2011 EXAMINATION PAPER WITH SOLUTION ........................................................ 76
5.7 OCTOBER 2011 EXAMINATION PAPER WITH SOLUTION .............................................. 89

6. EXAMINATION PREPARATION AND APPROACH ................................................................. 101




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, FAC3703/203

1 INTRODUCTION

Dear Student

ERRATA TO STUDY GUIDE, SUGGESTED SOLUTIONS TO ASSIGNMENT 2/2012 AS WELL AS
EXAMINATION PAPERS AND SOLUTIONS

Attached please find the errata to the study guide, suggested solutions to assignment 02/2012, the
examination question papers and the suggested solutions for October 2008, May 2009, October 2009, May
2010, October 2010 ,May 2011 and October 2011, as well as the examination preparation and technique for
May/June 2012.

You will notice in our suggested solutions, dealing with company financial statements, opposite certain items
calculations are shown in brackets. Such calculations are given for tuition purposes only and consequently do
not form part of the statutory disclosure requirements.


2 LECTURER AND CONTACT DETAILS

Please use only the following e-mail address for all communication with the lecturers:



Students registered for first semester:




Please use the following telephone number for all communication with the lecturers:


012 429-4246




Lecturer Office

Ms L Botha AJH van der Walt Building 02-65
Ms F Aboo AJH van der Walt Building 02-68
Mr B Khanyeza AJH van der Walt Building 02-64
Mr A Steyn AJH van der Walt Building 02-70
Ms R van der Westhuizen AJH van der Walt Building 02-66
Mr V Booi AJH van der Walt Building 02-56
Ms T Sekhaulela (Secretary/administration officer) AJH van der Walt Building 02-42




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, 3 ERRATA TO THE STUDY GUIDE

On page 49 of the English study guide replace the calculation to solution 14 to read as follows:

[(2 000 000 x 10% x 10/12) – 30 000] = 136 667


4 SUGGESTED SOLUTION TO THE COMPULSORY ASSIGNMENT


4.1 COMPULSORY ASSIGNMENT 2

QUESTION ONE – SUGGESTED SOLUTION (FIRST SEMESTER)

ESA LTD

Headline earnings

2011 2010
R R
Profit before tax (given) 57 000 118 750
Income tax expense (given) (15 960) (33 250)
Depreciation (5 000 x 72%) (3 600) -
Cumulative preference dividends (given) (6 500) (6 500)
Basic earnings 30 940 79 000
Provision (Must be included and was included, therefore not taken into account in
the calculation) - -
Impairment of plant [(375 000 – 350 000) x 72%] 18 000 -
Profit on sale of vehicle [(90 000 – (180 000 – 103 250) x 72%)] (9 540) -
Headline earnings 39 400 79 000

Weighted average number of shares

2011 2010

Original number of shares 100 000 100 000

Headline earnings per share: (39 400/100 000) R0.39
(79 000/100 000) R0.79




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