As the financial controller of SEAS Ltd, you are responsible for preparing the company’s financial statements and are at present finalising these for the year ended 31 March 20X8 for presentation to the board of directors. The following items are material:
(i) Costs of £250,000 arose from the closure of the company’s factor y in Garratt, which manufactured coffins. Owing to a declining market, the company has withdrawn from this type of business prior to the year-end.
(ii) You discover that during February 20X8, whilst you were away skiing, the cashier took advantage of the weakness in internal control to defraud the company of £30,000.
(iii) During the year ended 31 March 20X8, inventories of obsolete electrical components had to be written down by £250,000 owing to foreign competitors producing them more cheaply.
(iv) At a board meeting held on 30 April 20X8, the directors signed an agreement to purchase the business of Mr Hacker (a small computer manufacturer) for the sum of £100,000.
(v) £300,000 of development expenditure, which had been capitalised in previous years, was written off during the year ended 31 March 20X8. This became necessary due to foreign competitors’ price cutting, which cast doubt on the recovery of costs from future revenue.
(vi) Dynatron Ltd, a customer, owed the company £50,000 on 31 March 20X8. However, on 15 May 20X8 it went into creditors’ voluntary liquidation. Of the £50,000, £40,000 is still outstanding and the liquidator of Dynatron is expected to pay approximately 25p in the pound to unsecured creditors.
(vii) On 30 April 20X8, the company made a 1 for 4 rights issue to the ordinary shareholders, which involved the issue of 50,000 £1 ordinary shares for a sum of £62,500.

Required:
Explain how you will treat the above financial statements, and give a brief explanation of why you are adopting your proposed treatment.