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a b) The following item has arisen during the preparation of Bold company limited draft financial statements for the year ended 31 March 2022: On

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a b) The following item has arisen during the preparation of Bold company limited draft financial statements for the year ended 31 March 2022: On 1 April 2021, Bold company limited commenced the extraction of Titanium from sea coast of Kenya. The company was granted a 20-year license to extract the mineral by Kenya's government at a cost of Shs. 100 million. At the end of the extraction, although not legally bound to do so, Bold company limited intends to make good the damage the extraction has caused to the sea coast land. This intention has been communicated to parties external to Bold company limited. The cost of this will be in two parts: a fixed amount of Shs. 240 million and a variable amount of Shs. 2 per kilogram extracted. In the year to 31 March 2022 Bold company limited extracted 30 million kilogram of Titanium. The entity uses discount rate of 10%. Required: Present the financial statement extract of Bold Company Limited for the year ending 31 March 2022. (8 marks) a b) The following item has arisen during the preparation of Bold company limited draft financial statements for the year ended 31 March 2022: On 1 April 2021, Bold company limited commenced the extraction of Titanium from sea coast of Kenya. The company was granted a 20-year license to extract the mineral by Kenya's government at a cost of Shs. 100 million. At the end of the extraction, although not legally bound to do so, Bold company limited intends to make good the damage the extraction has caused to the sea coast land. This intention has been communicated to parties external to Bold company limited. The cost of this will be in two parts: a fixed amount of Shs. 240 million and a variable amount of Shs. 2 per kilogram extracted. In the year to 31 March 2022 Bold company limited extracted 30 million kilogram of Titanium. The entity uses discount rate of 10%. Required: Present the financial statement extract of Bold Company Limited for the year ending 31 March 2022. (8 marks)

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