Question 3 (Marks: 40) Part A Study the Mr Price Group Limited Annual Financial Statements for the period 4 April 2021 to 2 April 2022, and then answer the following questions. The Mr Price Group Limited Annual Financial Statements are available on the internet, and you should access and download the statements from there, before attempting to answer PART A. Q.3.1 In your own words explain what depreciation is. (1) Q.3.2 Is depreciation an expense or an asset? Refer to the IFRS definitions of assets and (4) expenses to substantiate your answer. (Hint refer to your Accounting 1A textbook for the definitions.) Q.3.3 The two most common depreciation methods are the straight-line and reducing (3) balances method. Name one other

Question 3 (Marks: 40) Part A Study the Mr Price Group Limited Annual Financial Statements for the period 4 April 2021 to 2 April 2022, and then answer the following questions. The Mr Price Group Limited Annual Financial Statements are available on the internet, and you should access and download the statements from there, before attempting to answer PART A. Q.3.1 In your own words explain what depreciation is. (1) Q.3.2 Is depreciation an expense or an asset? Refer to the IFRS definitions of assets and (4) expenses to substantiate your answer. (Hint refer to your Accounting 1A textbook for the definitions.) Q.3.3 The two most common depreciation methods are the straight-line and reducing (3) balances method. Name one other depreciation method and give a short explanation of the method. Q.3.4 Which depreciation method does Mr Price Group Limited use to depreciate (1) furniture, fittings and vehicles? Q.3.5 Over how many years do they depreciate computer equipment and buildings? (2) Q.3.6 Why does a business normally only depreciate buildings and not the land? (2) Q.3.7 How much depreciation in Rand millions did Mr Price Group Limited disclose for (1) the group for property, plant and equipment for the period 4 April 2021 to 2 April 2022? Q.3.8 How much was the total carrying value of assets disposed or scrapped in Rand (1) millions for Mr Price Group Limited for the group for the period 4 April 2021 to 2 April 2022