GREAT ZIMBABWE UNIVERSITY

MUNHUMUTAPA SCHOOL OF COMMERCE

DEPARTMENT OF ACCOUNTING & INFORMATION SYSTEMS

PROGRAMME: B. COMMERCE (HONS) DEGREE IN ACCOUNTING, LEVEL 2.2

HACC221: FINANCIAL ACCOUNTING IIB: IN-CLASS TEST: 29/03/2022

Question 1

The following consolidated segment information is available:

Operating segments A B C
$ $ $
Revenue 400 000 300 000 200 000
Expenses (300 000) (150 000) (50 000)
The following items must still be accounted for:
$
Interest received (relating to segment A) 20 000
Interest paid in the ratio of segment A:B:C = 3:2:1 30 000
Income tax expense (not reviewed by the chief operating decision maker) 200 000
Share of profit of associate (relating to segment C) 150 000
Required:
Which of the above segments are reportable segments in accordance with IFRS 8? (13 marks)

Question 2
H Ltd has a 60% interest in S Ltd, who in turn has a 40% interest in C Ltd and 100%
interest in D Ltd. S Ltd has one director, Zezai, whose wife owns a 30% interest in G
Ltd. H Ltd has one director, Munya, whose son, owns a 25% interest in J Ltd. C Ltd has
one director, Panganai, who owns a 60% interest in K Ltd. D Ltd also has one director,
Revai.

Required

i. Identify the related parties of S Ltd. (7 marks)

ii. Which of the above parties are not related to S Ltd (5 marks)

TOTAL (25 MARKS)