1. Growth Horizons Pty Ltd is a group that has two subsidiaries, one subsidiary was started...

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1. Growth Horizons Pty Ltd is a group that has two subsidiaries, one subsidiary was started from scratch and has grown to have strong reputation, and as a result it now has internally generated intangible assets such as patents, trade mark and computer software. The other subsidiary is an acquired one which as a results has intangible assets that were inclusive in the acquisition of the business. As an Accountant you are called to assist this business in the recognition of intangible assets in terms of IAS38. In light of the scenario provided above. Provide the distinction between Internally generated and acquired intangible assets in compliance with IFRS3 and IAS38. (20) 2. B Limited paid for this dividend, therefore the dividend should not represent income for B Limited The dividend component is deducted from the price paid for the shares to calculate the clean price of the shares. The shares were acquired for R44 000, but R1 000 (20 000 x 5c) relates to the dividend that was paid for as the price quoted was a cum-dividend price. Therefore, the clean price of the shares is R43000. Assuming that the shares and dividends were paid for on 30 March 2013 and the dividend was received on 31 May 2013. Provide for journals when B Limited paid for both shares and dividends and when the dividend was actually received. (10) 3. On 15 June 2012. A Limited, invests in a bond at cost price R980 000 + R41 110 R984 110. The R4 110 is an advance receipt for interest, which was deducted from the selling price. The buyer will not receive the cash for this interest eamed. The seller will receive it, but the buyer will earn the interest, resulting in the recognition of the interest eamed at 30 June 2012. Provide for Journal entries, for the Investment in a bond by A Limited as at 15 June 2012 and when interest is earned on 30 June 2012 (10) 4. A plant has a cost of R1 000 000 and accumulated depreciation of R 300 000 at the end of year 3. The fair value less costs to sell of the plant is R650 000. The following figures show the expected cash flows from the use of the plant, and discounting thereof. (20) 1. Growth Horizons Pty Ltd is a group that has two subsidiaries, one subsidiary was started from scratch and has grown to have strong reputation, and as a result it now has internally generated intangible assets such as patents, trade mark and computer software. The other subsidiary is an acquired one which as a results has intangible assets that were inclusive in the acquisition of the business. As an Accountant you are called to assist this business in the recognition of intangible assets in terms of IAS38. In light of the scenario provided above. Provide the distinction between Internally generated and acquired intangible assets in compliance with IFRS3 and IAS38. (20) 2. B Limited paid for this dividend, therefore the dividend should not represent income for B Limited The dividend component is deducted from the price paid for the shares to calculate the clean price of the shares. The shares were acquired for R44 000, but R1 000 (20 000 x 5c) relates to the dividend that was paid for as the price quoted was a cum-dividend price. Therefore, the clean price of the shares is R43000. Assuming that the shares and dividends were paid for on 30 March 2013 and the dividend was received on 31 May 2013. Provide for journals when B Limited paid for both shares and dividends and when the dividend was actually received. (10) 3. On 15 June 2012. A Limited, invests in a bond at cost price R980 000 + R41 110 R984 110. The R4 110 is an advance receipt for interest, which was deducted from the selling price. The buyer will not receive the cash for this interest eamed. The seller will receive it, but the buyer will earn the interest, resulting in the recognition of the interest eamed at 30 June 2012. Provide for Journal entries, for the Investment in a bond by A Limited as at 15 June 2012 and when interest is earned on 30 June 2012 (10) 4. A plant has a cost of R1 000 000 and accumulated depreciation of R 300 000 at the end of year 3. The fair value less costs to sell of the plant is R650 000. The following figures show the expected cash flows from the use of the plant, and discounting thereof. (20)

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