key to the study guide - Name

ACTIVITY
Provide a summary of the steps to be taken to calculate the accrual of a
spouse's estate as well as the steps needed to calculate the accrual claim.
FEEDBACK
Thestepstobetakentocalculatetheaccrual of a spouse's estate, can be
summarised as follows:
Net value on dissolution (also called net end value)
minus net commencement value (also called net initial value)
minus assets which do not form part of the estate's accrual
= ACCRUAL
The steps to be taken thereafter to calculate any accrual claim, can be
summarised as follows:
Accrual claim = (larger accrual 7 smaller accrual)
You can now carefully study the example of an accrual calculation on page
103 of the textbook.
HINTS: When you are asked to do a calculation of accrual in the
examination or in an assignment, you should always explain
what you are doing. You therefore have to SUBSTANTIATE
each step CLEARLY, as you obtain marks for this explanation in
your assignment and in the examination. For example, you have
to explain why you exclude or do not exclude a specific amount
from the accrual. When doing an accrual calculation, you must
keep in mind that we are not only interested in the calculations.
We also want so see your explanation of why you follow certain
steps. Please note that although you have to explain the
different steps, you need not provide authority for it Ð you
therefore need not refer to the relevant section of the Act at each
step.
You may use the abbreviation CPI for the ``consumer price
index'' in order to save time.
If you still do not know exactly what to do when calculating an
accrual, study the feedback on the following activity.
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