How often Statement of comprehensive income is asked

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The questions

1. May/Jun 2012, Q333 marks

   The books of Polo Limited, a listed company, reflect the following balances for the financial year ended 30 June 2010: loan to Prada Ltd (note 9) R165 000; investments at cost (note 8) R202 000; 11% long-term loan from Levi Ltd (note 2) R90 000; land at cost R100 000; buildings at cost R1 654 000; plant and machinery at carrying amount as at 01/07/2009 R1 457 500; furniture and equipment at carrying amount as at 01/07/2009 R310 000; accumulated depreciation on plant and machinery as at 01/07/2009 R1 192 500; accumulated depreciation on furniture and equipment as at 01/07/2009 R110 000; income/revenue (including VAT at 14%) R3 306 000; other income (note 3) R41 575; administrative expenses (notes 4 and 5) R772 600; other expenses (note 6) R68 700; and income tax expense (assume this figure is correct) R4 800. Additional information is as follows. (1) Polo Limited maintains an annual gross profit percentage of 35%. (2) The 11% long-term loan from Levi Limited originated on 1 July 2005; the capital is repayable in 8 equal annual instalments starting 30 November 2007, and interest on the loan is payable bi-annually on 30 November and 30 June each year. (3) 'Other income' already includes interest received of an unstated (to be calculated) amount from Prada Limited, R6 500 from the bank account and R1 750 from trade and other receivables, as well as dividends received of R4 700 from Armani Limited and an unstated (to be calculated) amount from Guess Limited (see note 8); Guess Limited declared and paid a dividend of 10c per share during the year. (4) 'Administrative expenses' consists of salaries and wages R750 000, stationery R1 100, telephone R2 700, auditors' remuneration for travelling expenses R3 100, auditors' remuneration for audit fees R11 500, and water and electricity R4 200. (5) The key personnel of Polo Limited and its subsidiary are: chairman of the board - Mr C for Polo Ltd and Mr A for the subsidiary; marketing manager - Mr B for Polo Ltd and no equivalent position in the subsidiary; executive director - Mr A for Polo Ltd and Mr C for the subsidiary; financial director - no equivalent position in Polo Ltd and Mr B for the subsidiary. (5.1) The salaries and wages of Polo Limited include the following remuneration paid to senior key personnel: Mr A R300 000, Mr B R250 000, and Mr C R200 000; each director also received a total compensation of R3 200 for meetings attended during the year. (5.2) The subsidiary of Polo Limited paid the following directors' remuneration: Mr A R230 000, Mr B R200 000, and Mr C R180 000. (5.3) A pension of R75 000 was paid to Mrs H, the widow of a former executive director of Polo Limited. (6) 'Other expenses' already includes interest paid on the long-term loan (note 2) of an unstated (to be calculated) amount, sundry expenses of R1 900, credit losses written off of R3 100, and interest paid on the bank overdraft of R4 200. (7) The following depreciation must still be accounted for. (7.1) All the machinery was purchased on 31 March 2008 for R2 500 000, with installation costs of R150 000; the company depreciates machinery at 20% per annum on the straight-line method. During the current financial year all the machinery was withdrawn from the production process for a period of 9 months and used in constructing the buildings; no machinery was bought or sold during the year. The following direct costs relating to the buildings were debited to the buildings account: labour R554 000 and material R1 100 000. (7.2) Buildings are written off over 25 years on the straight-line method; construction of the buildings was completed during the year and the buildings were brought into use on 1 April 2010. (7.3) On 31 March 2010, furniture and equipment with a cost price of R80 000 and accumulated depreciation of R35 000 at the beginning of the financial year was traded in at a loss of R4 500 as part payment for new equipment costing R75 000; furniture and equipment are depreciated at 10% per annum on the straight-line method. Depreciation must be calculated to the nearest Rand. (8) Investments consist of the following. (8.1) 10 000 ordinary shares in Armani Limited were purchased at a cost of R42 000; the total issued share capital of Armani Limited consists of 70 000 ordinary shares; Armani Limited's shares traded on the Johannesburg Securities Exchange at R5,50 each on 30 June 2010; these shares form part of Polo Ltd's share trading portfolio. (8.2) 80 000 ordinary shares in Guess Limited were purchased at R2 each; the total issued share capital of Guess Limited consists of 750 000 ordinary shares; Guess Limited's shares traded on the Johannesburg Securities Exchange at R2,70 each on 30 June 2010; this investment was designated as not-held-for-trading. (8.3) No entry has yet been made in respect of the revaluation of the investments described above. (9) The 15% long-term loan was made to Prada Ltd on 1 September 2009, and no capital had been repaid by year end; Polo Ltd owns 5 000 of the total issued share capital of 7 000 shares of Prada Ltd. Required: Prepare the Statement of Comprehensive Income and the profit before tax note of Polo Limited for the year ended 30 June 2010, complying with the requirements of the Companies Act and Generally Accepted Accounting Practice. Ignore comparative figures and the note on accounting policies. Show all calculations.

2. May/Jun 2011, Q143 marks

   This question relates to One Shot Limited and uses the following information extracted from its accounting records for the year ended 28 February 2011 (all amounts in R unless stated otherwise). Trial balance extract: land at cost (see note 3) 200 000; buildings at cost (see note 3) 1 800 000; long-term loans owing to Lost it (Pty) Ltd (see note 5) 200 000 and to Abe Limited 60 000; trade and other receivables 172 000; inventory of raw materials 16 000, finished goods 484 000 and work-in-progress 40 000; machinery and equipment at cost (see note 9) 320 000; delivery vehicles at cost (see note 8) 340 000; proceeds from the sale of a delivery vehicle during the year 76 000; accumulated depreciation at 28 February 2011 on delivery vehicles (see note 8) unknown (must be calculated), on machinery and equipment (see note 9) 160 000, and on buildings (see note 3) unknown (must be calculated); short-term interest-free, uninsured loans to personnel 18 000; cash in bank 33 000; investments (see note 4) 344 000; provisional tax payments 32 400; 12% debentures of R100 each issued during the year, secured by a first mortgage over land and buildings and redeemable on 31 March 2014, 400 000; dividends received from Babe Limited 3 600 and from Cringe (Pty) Ltd 1 600; interest received from Abe Limited 5 000; ordinary share capital (see notes 1 and 2) 2 000 000; 10% non-cumulative preference share capital 220 000; 12% cumulative preference share capital 180 000; proceeds from 10 000 10% non-cumulative preference shares issued at par value on 31 August 2010 (amount not given, must be calculated); proceeds from 200 000 ordinary par-value shares issued on 31 May 2010, 420 000; share issue expenses relating to the above share issues 12 000; preliminary expenses 6 000; debenture issue expenses 8 000; trade and other payables 143 000; retained earnings at 1 March 2010, 787 600; income (VAT included at 14%) 20 520 000; VAT on income paid to SARS (see note 11) 2 020 000; distribution costs 107 200; and administrative expenses before adjustments (see note 6) 6 776 400. Additional information is as follows. (1) One Shot Limited was incorporated with an authorised share capital of 1 600 000 ordinary shares of R2 each, 200 000 10% non-cumulative preference shares of R5 each, and 100 000 12% cumulative preference shares of R4 each. (2) On 1 March 2010 the directors resolved on the following, which must still be accounted for, in this order: (2.1) a capitalisation issue to ordinary shareholders of one share for every ten shares held, funded out of retained earnings; and (2.2) the writing off of all share issue costs, preliminary expenses and debenture issue expenses with the minimum effect on distributable reserves at 28 February 2011. (3.1) The existing land, which is owner-occupied and situated at erf 90, Riviera, was purchased on 1 March 2007 for R200 000; the buildings, costing R1 800 000, were completed on 2 March 2010. On 31 August 2010 a sworn appraiser, Mr Smit, revalued the land and buildings to R400 000 and R2 400 000 respectively on the gross replacement basis, with the buildings' remaining economic life unchanged. (3.2) Buildings are depreciated at 2% per annum on the straight-line basis and this still needs to be accounted for. (4) The investments of R344 000 comprise: (4.1) Abe Limited - 40 000 ordinary shares of R3 each costing R120 000; Abe Limited's authorised share capital is 100 000 shares, of which 60 000 have been issued; the directors valued this investment at R120 000 on 28 February 2011. (4.2) Babe Limited, listed on the Johannesburg Securities Exchange and held for speculative purposes - 4 000 ordinary shares of R40 each costing R160 000; the market value on 28 February 2011 was R50 per share. (4.3) Cringe (Pty) Ltd, designated as not available-for-sale - 800 ordinary shares of R80 each costing R64 000; the directors valued this investment at R80 000 on 28 February 2011. (4.4) In previous years the fair value of these investments equalled their cost price, and no entries relating to the current valuations have yet been recorded. (5) The unsecured long-term loan from Lost it (Pty) Ltd originated on 1 March 2010 and is repayable in five equal annual instalments starting 31 August 2010; interest at the current rate of 10% for the current year must still be provided for and is payable on 5 March 2011; One Shot Limited applies settlement date accounting for its financial instruments. (6) Administrative expenses (before adjustments) include: auditors' remuneration of 9 000 (including R4 200 of travelling costs); a travelling and entertainment allowance for the managing director of 13 600; directors' remuneration for attending meetings of 7 200 for the managing director and 7 200 for the non-executive director (a further R8 000 was paid to the managing director by the subsidiary for attending meetings); salaries of 800 000 (including R280 000 paid to the managing director, and the company's pension fund contributions of 5% on gross salaries); bank charges of 2 800; interest on overdraft of 27 600; interest on debentures of 32 000; and depreciation on machinery and equipment, amount not given (must be calculated). (7) Normal company tax of R76 000 must still be provided for. On 28 February 2011 the directors declared a dividend of 5c per ordinary share that must still be provided for; no dividends were declared or paid in the previous year. (8) One Shot Limited sold its only delivery vehicle on 31 May 2010; its original cost was R140 000 and it was purchased on 1 September 2007; it was replaced on the same date with a new delivery vehicle; depreciation on delivery vehicles is written off at 20% per annum on the straight-line method, and the current year's depreciation must still be provided for. (9) Depreciation on machinery and equipment is written off at 20% per annum on the diminishing-balance method; there were no purchases or sales of machinery during the year. (10) One Shot Limited maintained a gross profit percentage of 40% during the year. (11) VAT on income for January and February 2011 has not yet been paid to SARS; input VAT must be ignored for purposes of this question. Using all the information given about One Shot Limited above, prepare the company's Statement of Comprehensive Income together with the relevant supporting notes for the year ended 28 February 2011, in compliance with the requirements of the Companies Act and Generally Accepted Accounting Practice. Accounting policy notes and comparative figures may be ignored, but all supporting calculations must be shown.

3. Oct/Nov 2010, Q1.118 marks

   For the financial year ended 30 September 2010, Games Manufacturers Limited's books show the following (amongst other things). Income comprised: sale of toy trains on credit (including 14% VAT) R798 000 (note 1); sale of toy trains for cash (including 14% VAT) R1 140 000 (note 1); services rendered to clients (including 14% VAT) R456 000 (note 1); rental income from machinery (including 14% VAT) R399 000; interest received on the bank account R8 360; and interest received on the loan to Chris Limited R11 540 (note 2). Expenses comprised: cost of sales (note 3) – amount not given, to be calculated; administrative expenses R4 300; audit fees R13 400 (note 4); salaries and wages R596 000 (note 5); depreciation on machinery R36 500 (note 6); distribution cost R17 530; interest paid (note 8) – amount not given, to be calculated; and income tax expense R72 742. Additional information: (1) Income – (1.1) the inexperienced accountant neglected to reverse the VAT on the sales figures above; (1.2) the main business activity of Games Manufacturers Limited is the sale and servicing of toy trains; (1.3) Merch Games, a debtor owing R34 200 to Games Manufacturers Limited, qualified for a 10% settlement discount if she paid before 15 October 2010, and she paid the full outstanding amount on 29 September 2010, with the discount still to be accounted for; (1.4) on 15 October 2010 a contract worth R1 million was awarded to Games Manufacturers Limited for manufacturing a range of toy trains. (2) The issued share capital of Chris Limited is R50 000, made up of shares with a par value of R2,50 each; Games Manufacturers Limited owns 13 000 of these shares, bought for R48 750, and the directors believe the fair value of these shares was still R48 750 at year end. (3) The company's gross profit is 25% of turnover. (4) Auditors' remuneration of R13 400 consists of auditors' remuneration R2 000, fees for advice given to management R7 820, and travelling costs of the auditor R3 580. (5) Salaries and wages of R596 000 include: salary of Mr Nel, the managing director, R140 000; salaries of Mr Smit and Mr Els, two non-executive directors, totalling R230 000; salaries and wages of workers R125 000; salary of Mr Ben, the marketing manager, R60 000; pension fund contributions of 7,5% of directors' salaries amounting to R27 750; directors' fees for attending directors' meetings (non-executive directors) R4 000; entertainment allowance for the managing director R6 000; and travelling cost for Mr Nel R3 250. Mr Ben is also managing director of Games Manufacturers Limited's subsidiary, from which he received a separate salary of R180 000. (6) Additional machinery costing R75 000 was bought on 1 March 2010 and its depreciation still needs to be accounted for; machinery is depreciated at 20% per annum on the straight-line basis, and there were no other machinery purchases or disposals during the year. (7) Any expense not classified as administrative or distribution cost must be treated as another operating expense. (8) A long-term loan of R90 000 was taken out on 1 January 2008, with the capital portion repayable in five equal annual instalments starting 1 September 2008; interest is calculated at 15% per annum, payable annually on 1 October, and must still be provided for. (9) Games Manufacturers Limited owns 120 000 of the 2 500 000 issued shares in Train Limited, bought for R302 000; these JSE-traded shares had a market value of R2,60 each on 30 September 2009 and R3,00 each on 30 September 2010, with no adjustment yet made for the increase, and they are designated as available-for-sale. (10) Games Manufacturers Limited owns 100 000 of the 2 400 000 issued shares in Jet Limited, bought for R250 000; these JSE-traded shares had a market value of R2,50 each on 30 September 2009 and R3,00 each on 30 September 2010, with no adjustment yet made, and they were acquired for speculative purposes. (11) Land with a cost price of R1 million was revalued to a replacement value of R1,5 million on 1 December 2009 by Mr Suid, a sworn appraiser, but no entry has yet been made in the books to record this. Using all the information given about Games Manufacturers Limited for the financial year ended 30 September 2010, prepare the company's Statement of comprehensive income in compliance with the Companies Act and Generally Accepted Accounting Practice. Comparative figures and notes may be ignored, but all calculations must be shown.

4. Oct/Nov 2010, Q1.211 marks

   For the financial year ended 30 September 2010, Games Manufacturers Limited's books show the following (amongst other things). Income comprised: sale of toy trains on credit (including 14% VAT) R798 000 (note 1); sale of toy trains for cash (including 14% VAT) R1 140 000 (note 1); services rendered to clients (including 14% VAT) R456 000 (note 1); rental income from machinery (including 14% VAT) R399 000; interest received on the bank account R8 360; and interest received on the loan to Chris Limited R11 540 (note 2). Expenses comprised: cost of sales (note 3) – amount not given, to be calculated; administrative expenses R4 300; audit fees R13 400 (note 4); salaries and wages R596 000 (note 5); depreciation on machinery R36 500 (note 6); distribution cost R17 530; interest paid (note 8) – amount not given, to be calculated; and income tax expense R72 742. Additional information: (1) Income – (1.1) the inexperienced accountant neglected to reverse the VAT on the sales figures above; (1.2) the main business activity of Games Manufacturers Limited is the sale and servicing of toy trains; (1.3) Merch Games, a debtor owing R34 200 to Games Manufacturers Limited, qualified for a 10% settlement discount if she paid before 15 October 2010, and she paid the full outstanding amount on 29 September 2010, with the discount still to be accounted for; (1.4) on 15 October 2010 a contract worth R1 million was awarded to Games Manufacturers Limited for manufacturing a range of toy trains. (2) The issued share capital of Chris Limited is R50 000, made up of shares with a par value of R2,50 each; Games Manufacturers Limited owns 13 000 of these shares, bought for R48 750, and the directors believe the fair value of these shares was still R48 750 at year end. (3) The company's gross profit is 25% of turnover. (4) Auditors' remuneration of R13 400 consists of auditors' remuneration R2 000, fees for advice given to management R7 820, and travelling costs of the auditor R3 580. (5) Salaries and wages of R596 000 include: salary of Mr Nel, the managing director, R140 000; salaries of Mr Smit and Mr Els, two non-executive directors, totalling R230 000; salaries and wages of workers R125 000; salary of Mr Ben, the marketing manager, R60 000; pension fund contributions of 7,5% of directors' salaries amounting to R27 750; directors' fees for attending directors' meetings (non-executive directors) R4 000; entertainment allowance for the managing director R6 000; and travelling cost for Mr Nel R3 250. Mr Ben is also managing director of Games Manufacturers Limited's subsidiary, from which he received a separate salary of R180 000. (6) Additional machinery costing R75 000 was bought on 1 March 2010 and its depreciation still needs to be accounted for; machinery is depreciated at 20% per annum on the straight-line basis, and there were no other machinery purchases or disposals during the year. (7) Any expense not classified as administrative or distribution cost must be treated as another operating expense. (8) A long-term loan of R90 000 was taken out on 1 January 2008, with the capital portion repayable in five equal annual instalments starting 1 September 2008; interest is calculated at 15% per annum, payable annually on 1 October, and must still be provided for. (9) Games Manufacturers Limited owns 120 000 of the 2 500 000 issued shares in Train Limited, bought for R302 000; these JSE-traded shares had a market value of R2,60 each on 30 September 2009 and R3,00 each on 30 September 2010, with no adjustment yet made for the increase, and they are designated as available-for-sale. (10) Games Manufacturers Limited owns 100 000 of the 2 400 000 issued shares in Jet Limited, bought for R250 000; these JSE-traded shares had a market value of R2,50 each on 30 September 2009 and R3,00 each on 30 September 2010, with no adjustment yet made, and they were acquired for speculative purposes. (11) Land with a cost price of R1 million was revalued to a replacement value of R1,5 million on 1 December 2009 by Mr Suid, a sworn appraiser, but no entry has yet been made in the books to record this. Based on the same information for Games Manufacturers Limited for the financial year ended 30 September 2010, present the note on profit before tax that would accompany the Statement of comprehensive income, in accordance with the Companies Act and Generally Accepted Accounting Practice.

5. Oct/Nov 2010, Q1.3.12 marks

   For the financial year ended 30 September 2010, Games Manufacturers Limited's books show the following (amongst other things). Income comprised: sale of toy trains on credit (including 14% VAT) R798 000 (note 1); sale of toy trains for cash (including 14% VAT) R1 140 000 (note 1); services rendered to clients (including 14% VAT) R456 000 (note 1); rental income from machinery (including 14% VAT) R399 000; interest received on the bank account R8 360; and interest received on the loan to Chris Limited R11 540 (note 2). Expenses comprised: cost of sales (note 3) – amount not given, to be calculated; administrative expenses R4 300; audit fees R13 400 (note 4); salaries and wages R596 000 (note 5); depreciation on machinery R36 500 (note 6); distribution cost R17 530; interest paid (note 8) – amount not given, to be calculated; and income tax expense R72 742. Additional information: (1) Income – (1.1) the inexperienced accountant neglected to reverse the VAT on the sales figures above; (1.2) the main business activity of Games Manufacturers Limited is the sale and servicing of toy trains; (1.3) Merch Games, a debtor owing R34 200 to Games Manufacturers Limited, qualified for a 10% settlement discount if she paid before 15 October 2010, and she paid the full outstanding amount on 29 September 2010, with the discount still to be accounted for; (1.4) on 15 October 2010 a contract worth R1 million was awarded to Games Manufacturers Limited for manufacturing a range of toy trains. (2) The issued share capital of Chris Limited is R50 000, made up of shares with a par value of R2,50 each; Games Manufacturers Limited owns 13 000 of these shares, bought for R48 750, and the directors believe the fair value of these shares was still R48 750 at year end. (3) The company's gross profit is 25% of turnover. (4) Auditors' remuneration of R13 400 consists of auditors' remuneration R2 000, fees for advice given to management R7 820, and travelling costs of the auditor R3 580. (5) Salaries and wages of R596 000 include: salary of Mr Nel, the managing director, R140 000; salaries of Mr Smit and Mr Els, two non-executive directors, totalling R230 000; salaries and wages of workers R125 000; salary of Mr Ben, the marketing manager, R60 000; pension fund contributions of 7,5% of directors' salaries amounting to R27 750; directors' fees for attending directors' meetings (non-executive directors) R4 000; entertainment allowance for the managing director R6 000; and travelling cost for Mr Nel R3 250. Mr Ben is also managing director of Games Manufacturers Limited's subsidiary, from which he received a separate salary of R180 000. (6) Additional machinery costing R75 000 was bought on 1 March 2010 and its depreciation still needs to be accounted for; machinery is depreciated at 20% per annum on the straight-line basis, and there were no other machinery purchases or disposals during the year. (7) Any expense not classified as administrative or distribution cost must be treated as another operating expense. (8) A long-term loan of R90 000 was taken out on 1 January 2008, with the capital portion repayable in five equal annual instalments starting 1 September 2008; interest is calculated at 15% per annum, payable annually on 1 October, and must still be provided for. (9) Games Manufacturers Limited owns 120 000 of the 2 500 000 issued shares in Train Limited, bought for R302 000; these JSE-traded shares had a market value of R2,60 each on 30 September 2009 and R3,00 each on 30 September 2010, with no adjustment yet made for the increase, and they are designated as available-for-sale. (10) Games Manufacturers Limited owns 100 000 of the 2 400 000 issued shares in Jet Limited, bought for R250 000; these JSE-traded shares had a market value of R2,50 each on 30 September 2009 and R3,00 each on 30 September 2010, with no adjustment yet made, and they were acquired for speculative purposes. (11) Land with a cost price of R1 million was revalued to a replacement value of R1,5 million on 1 December 2009 by Mr Suid, a sworn appraiser, but no entry has yet been made in the books to record this. State the two categories of events after the reporting date recognised under IAS10 (AC107).

6. Oct/Nov 2010, Q1.3.21 mark

   For the financial year ended 30 September 2010, Games Manufacturers Limited's books show the following (amongst other things). Income comprised: sale of toy trains on credit (including 14% VAT) R798 000 (note 1); sale of toy trains for cash (including 14% VAT) R1 140 000 (note 1); services rendered to clients (including 14% VAT) R456 000 (note 1); rental income from machinery (including 14% VAT) R399 000; interest received on the bank account R8 360; and interest received on the loan to Chris Limited R11 540 (note 2). Expenses comprised: cost of sales (note 3) – amount not given, to be calculated; administrative expenses R4 300; audit fees R13 400 (note 4); salaries and wages R596 000 (note 5); depreciation on machinery R36 500 (note 6); distribution cost R17 530; interest paid (note 8) – amount not given, to be calculated; and income tax expense R72 742. Additional information: (1) Income – (1.1) the inexperienced accountant neglected to reverse the VAT on the sales figures above; (1.2) the main business activity of Games Manufacturers Limited is the sale and servicing of toy trains; (1.3) Merch Games, a debtor owing R34 200 to Games Manufacturers Limited, qualified for a 10% settlement discount if she paid before 15 October 2010, and she paid the full outstanding amount on 29 September 2010, with the discount still to be accounted for; (1.4) on 15 October 2010 a contract worth R1 million was awarded to Games Manufacturers Limited for manufacturing a range of toy trains. (2) The issued share capital of Chris Limited is R50 000, made up of shares with a par value of R2,50 each; Games Manufacturers Limited owns 13 000 of these shares, bought for R48 750, and the directors believe the fair value of these shares was still R48 750 at year end. (3) The company's gross profit is 25% of turnover. (4) Auditors' remuneration of R13 400 consists of auditors' remuneration R2 000, fees for advice given to management R7 820, and travelling costs of the auditor R3 580. (5) Salaries and wages of R596 000 include: salary of Mr Nel, the managing director, R140 000; salaries of Mr Smit and Mr Els, two non-executive directors, totalling R230 000; salaries and wages of workers R125 000; salary of Mr Ben, the marketing manager, R60 000; pension fund contributions of 7,5% of directors' salaries amounting to R27 750; directors' fees for attending directors' meetings (non-executive directors) R4 000; entertainment allowance for the managing director R6 000; and travelling cost for Mr Nel R3 250. Mr Ben is also managing director of Games Manufacturers Limited's subsidiary, from which he received a separate salary of R180 000. (6) Additional machinery costing R75 000 was bought on 1 March 2010 and its depreciation still needs to be accounted for; machinery is depreciated at 20% per annum on the straight-line basis, and there were no other machinery purchases or disposals during the year. (7) Any expense not classified as administrative or distribution cost must be treated as another operating expense. (8) A long-term loan of R90 000 was taken out on 1 January 2008, with the capital portion repayable in five equal annual instalments starting 1 September 2008; interest is calculated at 15% per annum, payable annually on 1 October, and must still be provided for. (9) Games Manufacturers Limited owns 120 000 of the 2 500 000 issued shares in Train Limited, bought for R302 000; these JSE-traded shares had a market value of R2,60 each on 30 September 2009 and R3,00 each on 30 September 2010, with no adjustment yet made for the increase, and they are designated as available-for-sale. (10) Games Manufacturers Limited owns 100 000 of the 2 400 000 issued shares in Jet Limited, bought for R250 000; these JSE-traded shares had a market value of R2,50 each on 30 September 2009 and R3,00 each on 30 September 2010, with no adjustment yet made, and they were acquired for speculative purposes. (11) Land with a cost price of R1 million was revalued to a replacement value of R1,5 million on 1 December 2009 by Mr Suid, a sworn appraiser, but no entry has yet been made in the books to record this. With reference to additional information point 1.4 (the R1 million manufacturing contract awarded to Games Manufacturers Limited on 15 October 2010), identify which category of event after the reporting date this represents under IAS10 (AC107).