Solstice Sun Energy Ltd is a company involved generating solar electricity. It purchased a solar power...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Solstice Sun Energy Ltd is a company involved generating solar electricity. It purchased a solar power plant, the details of which are as follows: Cash purchase price (1 January 2020): N$2 000 000 Depreciation straight line to nil residual values: 5 years The solar plant should be dismantled after 5 years, details of which are as follows. Future decommissioning costs assessed on 1 January 2020: N$1 000 000 Discount rate: 10% 1000 620 a 62 Solstice Sun Energy Ltd uses the cost model to measure items of plant. Below are the discount factors to be used ln discounting the decommissioning costs to its present values: Date Years to decommissioning date 10% discount factor PV 01/01/2020 5 0.62092, 16/0513.432 89370-6 31/12/2020 4 0.68301 1464107-1107 12946 3 0.75131 31/12/2021 3 1331008.505 0.82645 31/12/2022 2 0.90909 1/12/2023 1 1.00000 1/12/2024 0 to00 000 T610513.432 Sー lo00000 620921 5- lo834821.38 (+o.1)5 620 92. a) Prepare the journal entries relating to the solar plant for the years ended 31 Required: December 2020 and 31 December 2021. (6) b) Disclose the following in the notes to the financial statements of Solstice Sun Energy Ltd for the year ended 31 December 2023 in accordance with IFRS: (14) • Provision for decommissioning costs, Profit before tax Solstice Sun Energy Ltd is a company involved generating solar electricity. It purchased a solar power plant, the details of which are as follows: Cash purchase price (1 January 2020): N$2 000 000 Depreciation straight line to nil residual values: 5 years The solar plant should be dismantled after 5 years, details of which are as follows. Future decommissioning costs assessed on 1 January 2020: N$1 000 000 Discount rate: 10% 1000 620 a 62 Solstice Sun Energy Ltd uses the cost model to measure items of plant. Below are the discount factors to be used ln discounting the decommissioning costs to its present values: Date Years to decommissioning date 10% discount factor PV 01/01/2020 5 0.62092, 16/0513.432 89370-6 31/12/2020 4 0.68301 1464107-1107 12946 3 0.75131 31/12/2021 3 1331008.505 0.82645 31/12/2022 2 0.90909 1/12/2023 1 1.00000 1/12/2024 0 to00 000 T610513.432 Sー lo00000 620921 5- lo834821.38 (+o.1)5 620 92. a) Prepare the journal entries relating to the solar plant for the years ended 31 Required: December 2020 and 31 December 2021. (6) b) Disclose the following in the notes to the financial statements of Solstice Sun Energy Ltd for the year ended 31 December 2023 in accordance with IFRS: (14) • Provision for decommissioning costs, Profit before tax
Expert Answer:
Answer rating: 100% (QA)
As per IAS 16 Property plant and equipment Initially PPE is recorded at purchase cost dire... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Saunders manufactures a single product, details of which are as follows. per unit $ selling price 1500 direct materials 400 direct labour 200 variables overheads 150 Annual fixed production overheads...
-
Siteraze Ltd is a company which engages in site clearance and site preparation work. Information concerning its operations is as follows: (i) It is company policy to hire all plant and machinery...
-
Techmed Ltd is a company that manufactures and sells medical equipment to hospitals and has a 31 March year-end. Due to a demand for magnetic resonance imaging (MRI) scanners and computed tomography...
-
We are examining a new project. We expect to sell 9,000 units per year at $35 net cash flow apiece for the next 10 years. In other words, the annual operating cash flow is projected to be $35 X 9,000...
-
Suppose that an asset retirement liability is recorded and that the original estimates are not changed in subsequent years. Is any accounting treatment required for the liability in the intervening...
-
Aggie Power Generation supplies electrical power to residential customers for many U.S. cities. Its main power generation plants are located in Los Angeles, Tulsa, and Seattle. The following table...
-
Given the growing popularity of video games among young people, one study examined how women are portrayed in these games (Dietz, 1998). Dr. Dietz was particularly interested in whether video games...
-
In the Olympiad of 708B.C, some athletes competing in the standing long jump used handheld weights called halters to lengthen their jumps (Figure). The weights were swung up in front just before...
-
[50 pts] Write an assembly program that performs multiplication by addition: a. First, you should define a variable which is a string in the format of "a*b" where a and b represent numbers from 0 to...
-
A specific closed-loop control system is to be designed for an underdamped response to a step input. The specifications for the system are as follows: %OS 5% T <2s T, < 1.5 s a. (5 marks) Identify...
-
Unit VII Lab Assignment View Policies Current Attempt in Progress For the year ended December 31, 2022. Swifty Electrical Repair Company reports the following summary payroll data: Gross earnings:...
-
What are the two primary functions of OSHA regulations?
-
Torczyner , a diamond salesman, registered as a guest at the Hilton Hotel in Denver, Colorado. He placed his diamonds in the hotel safe when he did not need them for business purposes. On the last...
-
What are the requirements of a completed gift?
-
What would you say are the major barriers to interpersonal cooperation within the workplace?
-
Susan Lacroixs Yerf -Dog go-kart was stolen from her driveway one evening when she went inside to have dinner. The thief placed an advertisement in the newspaper and sold it to Ronald Casey for half...
-
Make a TicTacToe game, you want it to be able to compete against the computer as well as you. Hence, your game is going to have two modes: (i) single player mode (against the computer) and (ii) two...
-
What are the principal differences among asset liquidity management, liability management, and balanced liquidity management?
-
Three spheres are arranged on a line along the \(x\)-axis. Sphere \(m_{1}=5.00 \mathrm{~kg}\) and is at the origin while sphere \(m_{2}\) is at \(x=+35.0 \mathrm{~m}\). What must be the mass of the...
-
The acceleration of gravity on the surface of the Moon is about \(1 / 6\) of Earth's \(g\). If the radius of the moon is \(1,737.4 \mathrm{~km}\), approximate the mass of the Moon from the given...
-
In Figure 14.1, based on the time of arrival of the light signals, which event is observed first according to (a) observer A (b) observer B? (c) Figure 14.1 Two observers with synchronized clocks...
Study smarter with the SolutionInn App