Your firm has been engaged to examine the financial statements of Almaden Corporation for the year 2015. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2010. The client provides you with the following information.

The supplementary information below is also provided.
1. On May 1, 2015, the corporation issued at par €750,000 of bonds to finance plant expansion. The longterm bond agreement provided for the annual payment of interest every May 1. The existing plant was pledged as security for the loan.
2. The bookkeeper made the following mistakes.

(a) In 2013, the ending inventory was overstated by €183,000. The ending inventories for 2014 and 2015 were correctly computed.

(b) In 2015, accrued wages in the amount of €225,000 were omitted from the statement of financial position, and these expenses were not charged on the income statement.

(c) In 2015, a gain of €175,000 (net of tax) on the sale of certain plant assets was credited directly to retained earnings.
3. A major competitor has introduced a line of products that will compete directly with Almaden’s primary line, now being produced in a specially designed new plant. Because of manufacturing innovations, the competitor’s line will be of comparable quality but priced 50% below Almaden’s line. The competitor announced its new line on January 14, 2016. Almaden indicates that the company will meet the lower prices that are high enough to cover variable manufacturing and selling expenses, but permit recovery of only a portion of fixed costs.
4. You learned on January 28, 2016, prior to completion of the audit, of heavy damage because of a recent fire to one of Almaden’s two plants; the loss will not be reimbursed by insurance. The newspapers described the event in detail.
Instructions Analyze the preceding information to prepare a corrected statement of financial position for Almaden in accordance with IFRS. Prepare a description of any notes that might need to be prepared. The books are closed, and adjustments to income are to be made through retained earnings.

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Other assets Current assets Assets ALMADEN CORPORATION STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2015 Equity 5,171,400 Non-current liabilities Liabilities 4,650,600 1,439,500 1,881,100 Current liabilities 962,400 7,052,500 7,052,500