QUESTION $1$

$(15$ Marks$)$

Conceptual Framework and Financial Reporting Standards

$1\mathrm{.}1$ Briefly explain the role of the Conceptual Framework for Financial Reporting.

$(5$ Marks$)$

$1\mathrm{.}2$ Discuss the qualitative characteristics of useful financial information and explain how these

$(5$ Marks$)$ characteristics contribute to the objectives of financial reporting.

$1\mathrm{.}3$ A company purchased land for R$500,000.$ The fair value of the land increases to R$800,000$ over the next

$(5$ Marks$)$ two years. Discuss how this should be reported in the financial statements under the historical cost principle and the relevance of the Conceptual Framework.