QUESTION ONE

$[20]$

The detailed statement of comprehensive income of Shox $($Pty$)$ Ltd for year end $31$ March $2020$ contains the following account headings:

Your fellow trainee $($who thinks he knows everythingl$)$ tells you that the assertions pertaining to this account heading are as follows:

Valuation: salaries are presented at the gross amount less deductions

Existence: the salary earners to whom the R$10186241$ was paid all existed at financial position date.

Completeness: all salaries paid by the company in respect of the financial year are included in the amount.

Obligation: the company has an obligation to pay the amounts making up the total of R$10186241.$

Disclosure: the names of all salary eamers have been disclosed in the financial statements.

$1$

Required:

Discuss whether you agree with your fellow trainee. Justify your answer by explaining each assertion identified and providing the correct alternative.