After a court application by Bay City Trading 457, the property company owed a large amount...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
After a court application by Bay City Trading 457, the property company owed a large amount of rent (allegedly R273 388) by the Post Office, the Pretoria high court on 23 March placed it in provisional liquidation. This ruling resulted from financial difficulties that persisted for more than a decade at the state-owned enterprise. The SOE's liabilities exceed its assets by R4 billion, and its debt totals R8 billion. These financial difficulties have resulted in monies owed to creditors and workers, Unemployment Insurance Fund contributions for workers and retrenchments, among other things. (continued) In 2021, the auditor general found the Post Office to be commercially and technically insolvent. For the financial statements for 2021-22, the auditor general stated that it was unable to gather enough audit evidence that would have served as a foundation for an audit opinion. As such, the auditor general's office could not give an audit opinion. In dealing with the leadership problems prevalent at the state-owned entity, the Post Office of Tomorrow would have to be given clear performance indicators allowing the relevant institutions to monitor and evaluate it. According to the Financial Mail, the Post Office has "guzzled R8.4bn in taxpayer bailouts in the last five years". Meanwhile, the probability of a parcel actually arriving is a mere 68%, while the state-owned entity paid its directors and other "top brass" a total of R23.9 million." QUESTION 4.1 The South African Post Office has been provisionally sequestrated. If a final sequestration order is granted, would it be due to a voluntary surrender or a compulsory sequestration process? Substantiate your answer by referring to the article excerpt provided above. QUESTION 4.2 The South African Post Office is sequestrated by way of a final sequestration order. The Post Office informs its employees that they are no longer required to work and will not be entitled to any remuneration. Is the South African Post Office justified in communicating the above to their staff? Support your answer. After a court application by Bay City Trading 457, the property company owed a large amount of rent (allegedly R273 388) by the Post Office, the Pretoria high court on 23 March placed it in provisional liquidation. This ruling resulted from financial difficulties that persisted for more than a decade at the state-owned enterprise. The SOE's liabilities exceed its assets by R4 billion, and its debt totals R8 billion. These financial difficulties have resulted in monies owed to creditors and workers, Unemployment Insurance Fund contributions for workers and retrenchments, among other things. (continued) In 2021, the auditor general found the Post Office to be commercially and technically insolvent. For the financial statements for 2021-22, the auditor general stated that it was unable to gather enough audit evidence that would have served as a foundation for an audit opinion. As such, the auditor general's office could not give an audit opinion. In dealing with the leadership problems prevalent at the state-owned entity, the Post Office of Tomorrow would have to be given clear performance indicators allowing the relevant institutions to monitor and evaluate it. According to the Financial Mail, the Post Office has "guzzled R8.4bn in taxpayer bailouts in the last five years". Meanwhile, the probability of a parcel actually arriving is a mere 68%, while the state-owned entity paid its directors and other "top brass" a total of R23.9 million." QUESTION 4.1 The South African Post Office has been provisionally sequestrated. If a final sequestration order is granted, would it be due to a voluntary surrender or a compulsory sequestration process? Substantiate your answer by referring to the article excerpt provided above. QUESTION 4.2 The South African Post Office is sequestrated by way of a final sequestration order. The Post Office informs its employees that they are no longer required to work and will not be entitled to any remuneration. Is the South African Post Office justified in communicating the above to their staff? Support your answer.
Expert Answer:
Answer rating: 100% (QA)
QUESTION 41 The information provided doesnt explicitly state whether the prov... View the full answer
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
A small company has $4,500,000 in (annual) revenue, spends 57% of its revenues on purchases, and has a net profit margin of 11.75%. They would like to increase their profits and they are looking at...
-
Consider the wire bond pull strength data in Exercise 12-8. (a) Find 95% confidence interval on the regression coefficients. (b) Find a 95% confidence interval on mean pull strength when x2 = 20, x3...
-
An image-encoding algorithm, when used to encode images of a certain size, uses a mean of 110 milliseconds with a standard deviation of 15 milliseconds. What is the probability that the mean time (in...
-
Use information from Section 6.7 to estimate which form of electromagnetic radiation is the lowest energy ionizing radiation. Data from section 6.7 When we first introduced the concept of the...
-
Manson Incorporated reported the following current asset on its December 31, 2006 balance sheet: Temporary investment in available-for-sale securities (at cost) ...... $63,475 Less: Allowance for...
-
A 2.00 m rod is rotating with an oscillating angular momentum given by sin(2.00) . If a small rocket with oscillating linear momentum 10.0cos(2.00) is fired at =0.00 s , at what time will it need to...
-
Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put...
-
Your bond portfolio has a probability of default of 3%/year, loss given default of 60%, and a weighted average contractual rate of 5.5%/year. A) What is the expected loss per year? B) What is the...
-
Which standards must the auditors of Microsoft follow when performing an audit?
-
Charts to be included in an internal coding audit can be identified from multiple sources. What records could potentially be identified in an audit from accounts receiving aging or collection...
-
You are the operations manager at a company that produces salt crystals for water softeners used in homes that have a well system rather than city water. Below are the data for the last two years....
-
A chief audit executive (CAE) a developing a work program for an upcoming engagement that will review an organization's small contracting services. When of the following would the CAT need to...
-
Search and identify the five words related to documents for supply requirements: 1. A document that records the amount that has been paid out or as a debt. 2. A piece of document that is given in...
-
Design a summing amplifier that performs the following arithmetic operations. V = - (V + 3V2+2V3) Assume sinusoidal input signal with peak voltage of: V = 3V V = 1V, V= 2V and a frequency of 1 kHz....
-
Suppose you won a financial literacy competition and are given FJS10000 to invest, with the condition that investment can be done either in, i) Invest in Unit trust of Fiji or Invest in Fijian...
-
At the time of his death this year on September 4, Kenneth owned the following assets, among others: In October, the executor of Kenneths estate received the following: $120,000 interest on the City...
-
Troy's financial records for the year reflect the following: Interest income from bank savings account ........................... $ 900 Taxable annuity receipts...
-
Nanette, a single taxpayer, is a first-grade teacher. Potential deductions are charitable contributions of $800, personal property taxes on her car of $240, and various supplies purchased for use in...
-
A candlestick chart is similar to a bar chart except that the candlestick chart: A. Represents upward movements in price with Xs. B. Also graphically shows the range of the periods highs and lows. C....
-
What considerations might encourage a market analyst to rely more on a top-down or bottom-up forecast of S&P 500 operating earnings?
-
Which of the following advantages listed by Ryan with respect to the earnings-based approach studied by Atkinson is most likely correct? The model A. Can be used for non-U.S. equity markets. B....
Study smarter with the SolutionInn App