Topaz Ltd makes up its financial statements regularly to 31 December each year. The company has operated for some years with four divisions; A, B, C and D, but on 30 June 20X9 Division B was sold for £8m, realizing a profit of £2.5m. During 20X9 there was a fundamental reorganization of Division C, the costs of which were £1.8m. 

The trial balance of the company at 31 December 20X9 included the following balances:

A final dividend of £4m is proposed.
The balance on the revaluation reserve relates to the company’s freehold property and arose as follows:

Required
a. Prepare the statement of comprehensive income of Topaz Ltd for the year ended 31 December 20X9, complying as far as possible with the provisions of the Companies Act 2006, IFRS 5 and IAS 1 – Presentation of Financial Statements.
b. Explain why the disclosures in the statement of comprehensive income required by IFRS 5 and IAS 1 improve the quality of information available to users of the financial statements.

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Sales revenue Costs of sales Distribution costs (including a bad debt of £1.9m - Division D) Administrative expenses Profit on sale of Division B Reorganization costs, Division C Interest on £10m (10% debenture stock) issued in 20X3 Taxation Interim dividend paid Revaluation reserve Division B Debit £m 8 1 2 Credit £m 13 2.5 Divisions A, C and D combined Debit £m 41 6 4 1.8 1 4.8 2 Credit £m 68 10