Accountancy Law
2013/10/22
AUE1601
Revision slides
Topics 1 – 8
Charlene Roets CA(SA)
M.Com
B.Compt (Hons)
012 429 6079 roetsc@unisa.ac.za Disclaimer
Kindly note that these slides are for extra revision purposes.
It should by no means replace your study material. All material covered in topics 1-8 of your study guide is examinable
(including all tutorial questions). Nothing in these slides are more important than the rest of your study material. Please note that these slides are only available in English.
1
Open Rubric
2013/10/22
Topic 2
Related parties and control
• Relationship between individual and individual
•
•
•
•
•
Married or living together as if married
Siblings
Parents and Children
Parents and Adopted Children
Grandparents and grandchildren
• Relationship between individual and juristic person (company)
•
•
•
•
Individual holds majority of shares in company (51% or more)
Individual together with related/inter related person holds majority of shares (e.g. John, his wife, and his brother together holds 51% or more)
Individual’s wife or brother or child or parents holds 51% or more (even though the individual may hold nothing)
Individual, although holding 0% or less than 50% of the shares, has the right to appoint or choose directors who controls the board.
Topic 2
• Relationship between juristic person and juristic person (company and company) • Company A holds 51% or more of the shares in Company B
• Company A is able to appoint or choose the directors that controls the board of Company B
• John and/or his wife together holds 51% or more of the shares in both Company A and
Company B
• Company A holds 51% in Company B and Company B holds 100% in Company C (all three are related and part of the same group).
2
2013/10/22
Topic 2
Solvency and Liquidity
Solvency test
•
Assets fairly valued =/> Liabilities fairly valued
Liquidity test
•
•
•
•
•
Company can pay its debts
As
AUE1601
Revision slides
Topics 1 – 8
Charlene Roets CA(SA)
M.Com
B.Compt (Hons)
012 429 6079 roetsc@unisa.ac.za Disclaimer
Kindly note that these slides are for extra revision purposes.
It should by no means replace your study material. All material covered in topics 1-8 of your study guide is examinable
(including all tutorial questions). Nothing in these slides are more important than the rest of your study material. Please note that these slides are only available in English.
1
Open Rubric
2013/10/22
Topic 2
Related parties and control
• Relationship between individual and individual
•
•
•
•
•
Married or living together as if married
Siblings
Parents and Children
Parents and Adopted Children
Grandparents and grandchildren
• Relationship between individual and juristic person (company)
•
•
•
•
Individual holds majority of shares in company (51% or more)
Individual together with related/inter related person holds majority of shares (e.g. John, his wife, and his brother together holds 51% or more)
Individual’s wife or brother or child or parents holds 51% or more (even though the individual may hold nothing)
Individual, although holding 0% or less than 50% of the shares, has the right to appoint or choose directors who controls the board.
Topic 2
• Relationship between juristic person and juristic person (company and company) • Company A holds 51% or more of the shares in Company B
• Company A is able to appoint or choose the directors that controls the board of Company B
• John and/or his wife together holds 51% or more of the shares in both Company A and
Company B
• Company A holds 51% in Company B and Company B holds 100% in Company C (all three are related and part of the same group).
2
2013/10/22
Topic 2
Solvency and Liquidity
Solvency test
•
Assets fairly valued =/> Liabilities fairly valued
Liquidity test
•
•
•
•
•
Company can pay its debts
As