3. Furniture and vehicles were purchased on 01 July 2016 at N$80 000 and $300 000...

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3. Furniture and vehicles were purchased on 01 July 2016 at N$80 000 and $300 000 respectively. Depreciation is written off on furniture at 12,5% per year on cost and on vehicles at 20% per year on the diminishing balance method. The necessary write-offs for the current year have been done. 4. The investments were acquired on 01 May 2017 and consist of the following: 10 000 ordinary shares in a listed company, Cheetah Ltd N$24 000 6000 ordinary shares in Lion (Pty) Ltd N$10 000 On 30 June 2018 the values of the shares in Cheetah Ltd and Lion (Pty) were N$28 000 and N$14 000 respectively. 5. Inventories consist of the following as at 30 June 2018: Trading goods N$18 000 Insurance paid in advance N$1000 Inventories are measured at lower of cost (FIFO) and net realizable value. 6. The authorized share capital of Zama Medical Ltd consist of 400 000 ordinary shares of N$1.10 each and 200 000 8% preference shares of N$1.75 each. On the 01 July 2016, the company issued 250 000 ordinary shares and 160 000 preference shares. No shares were issued during the current year. Preference share capital form part of equity. 7. The reserves consist of the following: Retained earnings (balance at 30 June 2017, N$7 000) Replacement reserve (balance at 30 June 2017, N$3 000) N$14 000 N$6 000 Ordinary dividends declared are still owing to the shareholders, while the preference dividends of N$19 200 have been paid. 8. The loan was entered into 01 July 2016 at an interest rate of 10% per annum. The loan is secured by a mortgage bond on land and buildings and is repayable in annual installments of N$20 000 from 31 December 2018. 9. Payables consist of the following: Trade payables N$6 000 Namibian current tax payable N$3000 Shareholder for dividends N$5 000 Required: 1) Write a report critically evaluating the presentation of the Statement of Financial position of Zama Medical Ltd as at 30 June 2018 above according to the requirements of IAS. (5 Marks) 2) Use your knowledge of IAS 1 and the requirements of the Namibian Companies Act 28 of 2004 Section 294 and prepare the corrected Statement of Financial position for Zama Medical Ltd as at 30 June 2018. (15 Marks) 3) Use your knowledge of IAS 1 and the requirements of the Companies Act 28 and prepare the corrected Statement of Changes in Equity of Zama Medical Ltd for the year ended 30 June 2018. (10 Marks) 3. Furniture and vehicles were purchased on 01 July 2016 at N$80 000 and $300 000 respectively. Depreciation is written off on furniture at 12,5% per year on cost and on vehicles at 20% per year on the diminishing balance method. The necessary write-offs for the current year have been done. 4. The investments were acquired on 01 May 2017 and consist of the following: 10 000 ordinary shares in a listed company, Cheetah Ltd N$24 000 6000 ordinary shares in Lion (Pty) Ltd N$10 000 On 30 June 2018 the values of the shares in Cheetah Ltd and Lion (Pty) were N$28 000 and N$14 000 respectively. 5. Inventories consist of the following as at 30 June 2018: Trading goods N$18 000 Insurance paid in advance N$1000 Inventories are measured at lower of cost (FIFO) and net realizable value. 6. The authorized share capital of Zama Medical Ltd consist of 400 000 ordinary shares of N$1.10 each and 200 000 8% preference shares of N$1.75 each. On the 01 July 2016, the company issued 250 000 ordinary shares and 160 000 preference shares. No shares were issued during the current year. Preference share capital form part of equity. 7. The reserves consist of the following: Retained earnings (balance at 30 June 2017, N$7 000) Replacement reserve (balance at 30 June 2017, N$3 000) N$14 000 N$6 000 Ordinary dividends declared are still owing to the shareholders, while the preference dividends of N$19 200 have been paid. 8. The loan was entered into 01 July 2016 at an interest rate of 10% per annum. The loan is secured by a mortgage bond on land and buildings and is repayable in annual installments of N$20 000 from 31 December 2018. 9. Payables consist of the following: Trade payables N$6 000 Namibian current tax payable N$3000 Shareholder for dividends N$5 000 Required: 1) Write a report critically evaluating the presentation of the Statement of Financial position of Zama Medical Ltd as at 30 June 2018 above according to the requirements of IAS. (5 Marks) 2) Use your knowledge of IAS 1 and the requirements of the Namibian Companies Act 28 of 2004 Section 294 and prepare the corrected Statement of Financial position for Zama Medical Ltd as at 30 June 2018. (15 Marks) 3) Use your knowledge of IAS 1 and the requirements of the Companies Act 28 and prepare the corrected Statement of Changes in Equity of Zama Medical Ltd for the year ended 30 June 2018. (10 Marks)