Panda Flooring (Pty) Ltd (‘Panda Flooring’ or ‘the company’) is a business based in Epping, Cape Town that specialises in the design, supply and installation of high-quality bamboo flooring. Panda Flooring targets the middle to high-end consumer market and has a financial year ending 31 March.
The financial accountant of Panda Flooring (Pty) Ltd (Panda Flooring) has recently left the finance team at Panda Flooring (Pty) Ltd and you have been appointed as an Assistant Financial Accountant to help with the preparation of the financial records and financial statements for the year ending 31 March (‘FY2023’). In this role, the Financial Manager of the finance team, Ms. Bingo Bluey (FM) of Panda Flooring will be your liaison and will communicate the tasks that require your attention.
You are required to watch the introductory video ‘Panda Flooring’ before commencing with this project.
This project consists of TWO parts (Part A and Part B) based on the tasks from the Financial Manager (FM). Your response to the two questions must be prepared on Microsoft Word and Microsoft Excel and you must submit using the instructions under the Vula Assignments tool on the ACC2012W 2023 site.
Additional Information
Please note the following:
1. All entities’ financial statements are prepared in accordance with IFRS.
2. All entities have a reporting date of 31 March.
3. A market-related interest rate of 7% per annum.
4. Revenue for FY2023 amounts to R24 000 000 (2022: R29 000 000).
5. Ignore all forms of tax.
6. Panda Flooring uses the First-In-First-Out cost formula to determine the cost of inventory and applies the absorption costing method for units produced.
7. All entities apply the cost model to items of Property, Plant, and Equipment and Intangible Assets.
8. Panda Flooring accounts for its investment in subsidiaries at cost in its separate financial statements.
9. Goodwill is tested for impairment annually and has never been impaired.
10. Investment in equity instruments that do not give rise to control are measured at fair value through other comprehensive income.

1. Refer to Email 1 – Query 1 and 2

Indicate whether you agree or disagree with the comments made by the Financial Manager and provide a reason for your response.
• Query 1 (3 marks)
• Query 2 (2 marks)

2. Refer to Email 2, Attachment A and Appendix A.

Prepare an email response to Ms. Bluey and critically evaluate1 the raw materials general ledger account prepared by Ms. Swashbuckle. You are required to indicate and include:

• Where there have been any omissions or errors in key principles contained in IAS 2 – Inventories.
• For each error or omission, indicate the correct application i.e., what should appear in the financial statements for FY 2023.
• Calculations which are labelled and referenced where applicable. (1 mark)
• Relevant references to IAS 2 – Inventories. (1 marks)
• Clarity of sentences, grammar and spelling (1 marks)

You are not required to consider the amount issued from raw material to work-in- progress nor closing balance of raw materials general ledger account in your response.

Refer to Email 1 and ‘Attachment A and B’.

Complete the Panda Flooring Group Consolidation File for FY 2023 as requested by the Financial Manager of Panda (Pty) Ltd. The consolidation file must be completed in the MS Excel workbook titled: Attachment B – Panda Flooring Group Consolidation File. Follow all the instructions provided in the workbook.
Refer to Email 2.

Discuss any ethical concerns with the dividend transaction between Panda Flooring (Pty) Ltd and Mr Khuphuka, the majority shareholder.
Require 3 below is a separate question not based on Panda Flooring (Pty) Ltd and the scenario above.
Refer to Annexure A.

Assume that you have recently started a blog where you share your thoughts on various accounting and business issues.

Write a blog post with the title: Lessons from the Woolworths-David Jones Saga in a Post-Covid-19 Environment. Your blog post must include a discussion of the following based on Woolworths Holdings Ltd:

• What did the goodwill relate to and why did the group have to impair the goodwill? (3 marks)
• What was the impact of the goodwill impairment on the group’s financial performance in the year ending 24 June 2018? (1 mark)
• What is the relevance of goodwill impairment in a post covid-19 environment? (2 mark)

Language and clarity of communication (1 mark)

Your response must be limited to a maximum of 350 words.

Answers to Above Questions on Panda Flooring Case Study

Answer 1: An analysis of query one indicates that the financial manager is of the opinion that the inventory carrying amount is higher in the books of account compared to its current selling price in the market, and this is mainly because the supplier has over charge for it. With respect to this, my opinion is that I do not agree with what financial managers believe because the higher prices charged by the supplier gives an indication that it is a fraudulent activity.

Get completed answers on the above questions on financial reporting as provided by the accounting assignment help South Africa experts of Student Life Saviour.


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