Disclose the property, plant and equipment note in the financial statements of Mountaineers (Pty) Ltd the year ended 31 December 2025.

To disclose the property, plant and equipment note for Mountaineers (Pty) Ltd for the year ended 31 December 2025, we need to calculate the cost, accumulated depreciation, and carrying amounts for each asset category, as well as the movements during 2025. Step 1: Calculate initial balances (Cost and Accumulated Depreciation) at 1 January 2025. Land: Cost: R1 500 000 (total) - R1 000 000 (buildings) = R500 000 Accumulated Depreciation: R0 (Land is not depreciated) Carrying Amount: R500 000 Buildings: Cost: R1 000 000 Depreciation rate: 2% per annum (straight-line) Depreciation per year: R1 000 000 × 2% = R20 000 Accumulated Depreciation at 1 Jan 2025 (for 2022, 2023, 2024): R20 000 × 3 years = R60 000 Carrying Amount: R1 000 000 - R60 000 = R940 000 Motor Vehicles: No motor vehicles were owned at 1 January 2025. Cost: R0 Accumulated Depreciation: R0 Carrying Amount: R0 Equipment (Original): Cost: R50 000 (acquired 1 January 2022) Depreciation rate: 1/4 years = 25% per annum (straight-line) Depreciation per year: R50 000 × 25% = R12 500 Accumulated Depreciation at 1 Jan 2025 (for 2022, 2023, 2024): R12 500 × 3 years = R37 500 Carrying Amount: R50 000 - R37 500 = R12 500 Step 2: Calculate movements during 2025. Additions: Motor Vehicles (1 August 2025): R250 000 New Equipment (1 July 2025): R75 000 Disposals (Original Equipment on 1 July 2025): Cost of disposed equipment: R50 000 Depreciation for 2025 on disposed equipment (6 months): R50 000 × 25% × (6/12) = R6 250 Total Accumulated Depreciation on disposed equipment: R37 500 (at 1 Jan 2025) + R6 250 (2025) = R43 750 Carrying amount of disposed equipment: R50 000 - R43 750 = R6 250 Depreciation for 2025: Buildings: R1 000 000 × 2% = R20 000 Motor Vehicles: Acquired 1 August 2025, 5 months of depreciation. Diminishing balance rate: Assuming double the straight-line rate (1/5 years = 20%), so 20% × 2 = 40%. Depreciation: R250 000 × 40% × (5/12) = R41 667 Equipment: Original equipment (6 months): R6 250 (calculated above) New equipment (acquired 1 July 2025, 6 months): R75 000 × 25% × (6/12) = R9 375 Total Equipment Depreciation: R6 250 + R9 375 = R15 625 Step 3: Prepare the Property, Plant and Equipment Note. Mountaineers (Pty) Ltd \\ Notes to the Financial Statements \\ For the year ended 31 December 2025 Property, Plant and Equipment | | Land (R) | Buildings (R) | Motor Vehicles (R) | Equipment (R) | Total (R) | | :---------------------------------- | :----------- | :------------ | :----------------- | :------------ | :----------- | | Carrying amount at 1 January 2025 | 500 000 | 940 000 | 0 | 12 500 | 1 452 500 | | Movements for 2025 | | | | | | | Additions | 0 | 0 | 250 000 | 75 000 | 325 000 | | Disposals | 0 | 0 | 0 | (6 250) | (6 250) | | Depreciation | 0 | (20 000) | (41 667) | (15 625) | (77 292) | | Carrying amount at 31 December 2025| 500 000 | 920 000 | 208 333 | 65 625 | 1 693 958 | | | | | | | | | Cost | | | | | | | At 1 January 2025 | 500 000 | 1 000 000 | 0 | 50 000 | 1 550 000 | | Additions | 0 | 0 | 250 000 | 75 000 | 325 000 | | Disposals | 0 | 0 | 0 | (50 000) | (50 000) | | At 31 December 2025 | 500 000 | 1 000 000 | 250 000 | 75 000 | 1 825 000 | | | | | | | | | Accumulated Depreciation | | | | | | | At 1 January 2025 | 0 | 60 000 | 0 | 37 500 | 97 500 | | Disposals | 0 | 0 | 0 | (43 750) | (43 750) | | Depreciation for the year | 0 | 20 000 | 41 667 | 15 625 | 77 292 | | At 31 December 2025 | 0 | 80 000 | 41 667 | 9 375 | 131 042 | Accounting Policies • Land is not depreciated as it is considered to have an indefinite useful life. • Buildings are depreciated on the straight-line method over their estimated useful life of 50 years (2% per annum). • Motor vehicles are depreciated using the diminishing-balance method at 40% per annum. The residual value is estimated at 15% of cost. • Equipment is depreciated on the straight-line method over its estimated useful life of 4 years (25% per annum). Drop the next question! 📸