QUESTION 1 (15 marks) Calculus Lid (Calculus") is a niche manufacturer specialising in high-quality calculators for professional, educational, and industrial use. Calculus has a 31 December year-end. Calculus owns a delivery van to transport goods to customers. On 1 September 2024, the delivery van was stolen. Calculus decided to purchase a new van on 15 September 2024. Calculus did not have enough cash on that day to purchase the van and decided to get a vehicle finance loan from Papitep Bank to cover the cost of RBO0 000 of the van. The vehicle finance contract was signed on 30 September 2024 and Calculus received the van on the same day. The vehicle finance loan bears interest of 6% per annum. The loan is repayable in 48 monthly payments. REQUIRED: Discuss if Calculus Lid should recognise the vehicle finance loan from Papitep Bank In their annual financial statements. Your answer should be based on the Conceptual Framework for Financial Reporting- Use the following structure when compiling your answer. -Definition and recognition criteria (6 marks) -Application (6 marks) -Conclusion (2 marks) Communication skill: Clarity of expression (1 mark) HFAC131-1-Jan-Jun2025-SAI-EDK-V3-20250123 SAICA Competency Framework Reference: AREA B. STEWARDSHIP OF CAPITALS: BUSINESS PROCESSES AND 2 RISK MANAGEMENT B1.1 Fundamental Reporting Concepts a) Identify users' needs and develop a reporting approach by selecting suitable reporting and regulatory framework(s) which satisfies most users' needs in general purpose reporting by: (1) Applying the fundamental theories related to reporting. Applying the objective, usefulness, and limitations of the available reporting frameworks, Applying the objective, nature and characteristics of regulatory frameworks and requirements d) Identify, define, and evaluate the different elements in reporting