1.Prepare the journal entries to account for the changes in value of the equity instruments in Top Limited for the periods 31 March 2017 and 31 March 2018.

2. Prepare the statement of comprehensive income and statement of changes in equity for the period ending 31 March 2018. Comparative figures must be provided.

Change in Accounting Policy On 1 January 2017, Tip Limited purchased 1 000 000 equity instruments in Top Limited at $3.20 per share. On acquisition the management of Tip Limited classified this investment as 'available for sale'. At 31 March 2017, the fair value of these investments had increased to $4.10 per share. At 31 January 2018, the fair value of the equity instruments had increased to $6.80 at which time Tip Limited sold the investments. No dividends were declared on the instruments during the time they were held by Tip Limited. At 1 April 2016, the equity of Tip Limited was made up as follows: Contributed equity Revaluation surplus Available for sale financial asset Retained earnings Total NZ$ NZ$ NZ$ NZ$ NZ$ 1 000 000 400 000 670 000 950 500 2 980 500 Balance 1 April 2017 The abbreviated statement of comprehensive income for the reporting period ending 31 March 2018 is as follows: Tip Limited Statement of comprehensive income for the year ending 31 March 2018 2018 2017 NZ$ NZ$ Revenue 2 168 500 1 768 200 Expenses 776 500 789 500 1 392 000 978 700 Tax expense 419 600 294 820 Profit for the year 972 400 683 880 Profit before tax Other than detailed above there no other movements in 'Other comprehensive income' have occurred during the reporting period. The gain on the sale of the equity instruments is taxable in the hands of Tip Limited. The tax rate is 30 per cent. Required 1. 2. Prepare the journal entries to account for the changes in value of the equity instruments in Top Limited for the periods 31 March 2017 and 31 March 2018. Prepare the statement of comprehensive income and statement of changes in equity for the period ending 31 March 2018. Comparative figures must be provided