According to the Conceptual Framework definition of an asset

1. An asset is considered as a physical object

2. An asset is considered as a set of rights

Consider the following statements in context of IAS 40 Investment property:

1. Investment property includes plant and machinery from which rental income is earned or which is held for capital appreciation.

2. Land held for undetermined use would qualify as investment property.

3. Buildings owned and leased to a third party under a finance lease would qualify as investment property.

4. Property occupied by employees who pay rent at market rates would qualify as investment property.

(Choose one correct option only)

According to IFRS 18 Presentation and Disclosure in Financial Statements, which of the following should be reported on the face of the statement of financial position rather than in the notes to the financial statements?

1. The number of shares in issue

2. The classes of property, plant and equipment

3. The classification of assets as non-current and current

4. The composition of trade and other receivables into debtors, prepayments and accrued income

Mango Limited purchased a leading chutney brand from a competitor on 1 October 20X8 for N$450 000. The brand has an estimated useful life of 25 years and zero residual value. In order to maintain the brand’s premium market position, Mango Limited have incurred marketing costs of N$50 000 from 1 October 20X8 to 28 February 20X9, the end of the financial year.

What amount is recognised as an intangible asset on the statement of financial position of Mango Limited at 28 February 20X9?

(Choose one correct option only)

Consider the following statements in context of IAS 40 Investment property:

1. Investment property may be measured in terms of either the cost model or fair value model, where this choice is an accounting policy choice.

2. When measuring investment property using the cost model, we must always depreciate the asset and test it for impairments in terms of IAS 36 Impairment of assets.

3. The subsequent measurement models are selected on a property-by-property basis, i.e. some investment properties can be measured using the cost model despite others being measured using the fair value model.

4. When the fair value model is applied, all investment property must be measured at fair value, regardless of whether the fair value is reliably measurable on a continuing basis.

(Choose one correct option only)

Which of the following is NOT considered an enhancing qualitative characteristic of useful financial information according to the 2018 Framework?

(Choose one correct option only)

A liability is defined in the IASB Conceptual Framework as:

Min Limited constructed a building during 2024, details of which are as follows:

• Min Limited secured a loan to finance the construction of a building (a qualifying asset) on 5 January 2024 and began incurring interest on the loan from 1 February 2024 when the loan funds became available.

• Min Limited purchased the first batch of raw materials (sand, cement and bricks) on 10 February 2024.

• The construction of the building began on 20 February 2024.

(Select one correct option only)

A loan of N$100 000 was raised specifically for the construction of a plant, which met the definition of a qualifying asset. The loan was used to acquire the necessary raw materials and pay the related labour costs necessary for the construction of this asset. A further loan of N$20 000 had to then be raised to buy an extra 3 tons of material X, because the original load of material X (also having cost N$20 000) was completely destroyed in a freak storm.

(Choose one correct option only)