Snake Limited

Notes to the financial statements

for the year ended 31 December 20x5

Investment Property Note

Investment
Property fair
Investment Property at cost value
Carrying amount at 1 Jan 20x5 3,500,000 3,000,000
Cost 5,000,000 3,000,000
Less Accumulated dep - 1,500,000

Movements for the year

Transfers to IP
Cape Town Building (From Inventory to IP) 800,000
Durban Building (Transfer from PPE to IP) 3,200,000
Transfers from IP
Joburg property (Transfer fro IP to PPE) - 4,000,000
Fair value adjustments (200000+500000+500000+1000000) 2,200,000
Depreciation - 500,000

Carrying amount at 31 Dec 20x5 3,000,000 5,200,000

Cost 5,000,000
Less Accumulated dep - 2,000,000

Journals
1 March 20x5 IP (SFP) 800,000
Inventory (SFP) 800,000

1 March 20x5 IP (SFP) (1000000-800000) 200,000

Fair value adjustment (SPL) 200,000

31 Dec 20x5 IP (SFP) (1500000-1000000) 500,000

Fair value adjustment (SPL) 500,000

Durban Property
30 Sep 20x5 IP (SFP) 3,200,000
PPE (SFP) 3,200,000

31 Dec 20x5 IP (SFP) (3700000-3200000) 500,000

Fair value adjustment (SPL) 500,000

Joburg
30 Sep 20x5 IP (SFP) (4000000-3000000)) 1,000,000
Fair value adjustment (SPL) 1,000,000

PPE 4,000,000
IP 4,000,000
Workings
Cape Town building
FV Adjustments (1500000-800000) 700000

Durban Building
FV Adjustments (3700000-320000) 500000

Joburg property
FV Adjustments (4000000-3000000)) 1000000
2200000
Bloemfontein
Depreciation
5000000/10 500000
Accumulated dep at 1 Jan 20x5 (500000*3) 1500000

1 Jan 20x2 - 31 Dec 20x2 500000

1 Jan 20x - 31 Dec 20x3 500000
1 Jan 20x2 - 31 Dec 20x4 500000

Durban
Depreciation
4000000/10 400000
Dec 20x3 (400000*3/12) 100000
Dec 20x4 400000
Sep 20x5 (400000*9/12) 300000

Cost 4000000
Acc dep -800000
CA 3200000