ACC201- Financial Accounting

(ii) Illustrate the accounting of the Property, Plant & Equipment (PPE) during the latest financial year by showing the T-accounts for the PPE cost and its Accumulated Depreciation. (11 marks)

*** Note, the amount of Property, Plant and Equipment in Balance Sheet includes accumulated depreciation

Censelidated Cash Flew Statement For the Financial Year Ended 31 March 2019 Note 2019 2018 $'000 $000 Operating activities Profit before tax 5,412 4,736 Adiustments for (Write back)/impairment loss on amount due from associate (11) 16 141 Impairment loss on trade and other receivables 19 59 23 Fair value adjustment/impairment loss for investment in unquoted shares 16 209 Amortisation of intangible assets 12 63 63 Depreciation of property, plant and equipment 11 5,262 5,031 (106) (179) Gain on disposal of property, plant and equipment Property, plant and equipment written off Interest expense 135 345 6 329 291 Interest income (64) (49) Share of results of joint venture 76 301 (195) Currency realignment 131 Operating profit before changes in working capital 11,527 10,492 (487) Decrease/(increase) in inventories 95 (118) Increase in trade and other receivables (47) Increase in amount due from joint venture (212) (120) Increase in amounts due from associates (141) (385) Decrease/(increase) in deposits 125 Decrease in prepayments 179 1,747 Decrease in trade and other payables (400) (361) Censelidated Cash Flew Statement For the Financial Year Ended 31 March 2019 2018 Note 2019 $'000 $'000 Cash flows from operations 10,995 10,660 Income taxes paid (530) (1,011) Net cash flows generated from operating activities 10,465 9,649 Investing activities Purchase of property, plant and equipment (2,144) (2) (8,524) 11 Purchase of intangible assets 12 Proceeds from disposal of property, plant and equipment 184 431 (537) Capital injection into joint venture Interest income received 64 49 Net cash flows used in investing activities (1,898) (8,581) Financing activities Proceeds from bank loans 6,436 Loan to joint venture (282) (224) (251) Repayment of finance lease liabilities Interest paid (329) (1,431) (291) (6,089) (3,641) (3,836) Repayment of bank loans (3,641) (5,907) Dividends paid 36 Net cash flows used in financing activities Property, plant and equipment (cont'd) 11. Machinery Freehold Construction and Motor vehicles Electrical Total land Buildings in progress equipment Renovation fittings $'000 Furniture Group Computers $'000 $'000 $000 $'000 $'000 $'000 $'000 $'000 $'000 Accumulated depreciation 1 April 2017 2,216 2,395 7,554 6,948 1,748 1,084 21,945 Depreciation charge for the year 311 1,375 521 1,553 463 494 314 5,031 (598) (598) (1,666) Disposals Written off (128) (894) (294) (329) (21) At 31 March 2018 and 1 April 2018 2,139 24,712 311 8,801 7,607 1,917 2,560 1,377 Depreciation charge for the year 5,262 353 1,484 540 1,605 495 516 269 Disposals (465) (465) (391) (829) (228) (328) (24) Written off (1,800) 8.383 2,184 At 31 March 2019 664 9,894 2214 2,748 1,622 27,709 Net carrying amount: At 1 April 2017 7,333 5,042 1,132 4,045 853 5,209 1,784 1,410 763 27,571 31,560 28,453 At 31 March 2018 916 11,611 7,958 1,823 4,457 2,730 1,342 723 At 31 March 2019 897 11,245 6,874 1,593 3,759 2,397 1.158 530 The cash outflow on acquisition of property, plant and equipment amounted to $2,144,000 (2018: $8,524,000) Assets held under finance leases During the year, the Group acquired motor vehicles with an aggregate cost of $310,000 (2018: $1,260,000) by means of finance leases. The net carrying amount of motor vehicles held under finance leases as at 31 March 2019 was $1,273,000 (2018: $1,233,000) Leased assets are pledged as security for the related finance lease liabilities (Note 26) 19 OLD CHANG KeE AnnuAL REPORT 2019 Balance Sheets As At 31 March 2019 Note Group Company 1 April 31 arch 1 April 2017 31 March 2019 31 March 2018 31 March 2019 2018 2017 $'000 S'000 $'000 $'000 $'000 $'000 Non-current assets Property, plant and equipment 28,453 31,560 11 27,571 Intangible assets 12 228 289 352 Investment in subsidiaries 5,640 5,640 13 5.640 Investment in unquoted shares 64 234 14 234 273 64 273 Investment in associates and joint venture 15 160 461 537 537 Long term deposits 17 2,568 2,434 2,024 31,643 34,808 30,220 6,411 6,241 5,913 Current assets Inventories 18 1,097 1,192 705 Trade and other receivables 19 336 277 253 1,015 Deposits 17 756 1,040 24 1,013 1,192 Prepayments 2,939 41 24 Amount due from joint venture Amounts due from associates 16 494 282 16 131 Censelidated Cash Flew Statement For the Financial Year Ended 31 March 2019 Note 2019 2018 $'000 $000 Operating activities Profit before tax 5,412 4,736 Adiustments for (Write back)/impairment loss on amount due from associate (11) 16 141 Impairment loss on trade and other receivables 19 59 23 Fair value adjustment/impairment loss for investment in unquoted shares 16 209 Amortisation of intangible assets 12 63 63 Depreciation of property, plant and equipment 11 5,262 5,031 (106) (179) Gain on disposal of property, plant and equipment Property, plant and equipment written off Interest expense 135 345 6 329 291 Interest income (64) (49) Share of results of joint venture 76 301 (195) Currency realignment 131 Operating profit before changes in working capital 11,527 10,492 (487) Decrease/(increase) in inventories 95 (118) Increase in trade and other receivables (47) Increase in amount due from joint venture (212) (120) Increase in amounts due from associates (141) (385) Decrease/(increase) in deposits 125 Decrease in prepayments 179 1,747 Decrease in trade and other payables (400) (361) Censelidated Cash Flew Statement For the Financial Year Ended 31 March 2019 2018 Note 2019 $'000 $'000 Cash flows from operations 10,995 10,660 Income taxes paid (530) (1,011) Net cash flows generated from operating activities 10,465 9,649 Investing activities Purchase of property, plant and equipment (2,144) (2) (8,524) 11 Purchase of intangible assets 12 Proceeds from disposal of property, plant and equipment 184 431 (537) Capital injection into joint venture Interest income received 64 49 Net cash flows used in investing activities (1,898) (8,581) Financing activities Proceeds from bank loans 6,436 Loan to joint venture (282) (224) (251) Repayment of finance lease liabilities Interest paid (329) (1,431) (291) (6,089) (3,641) (3,836) Repayment of bank loans (3,641) (5,907) Dividends paid 36 Net cash flows used in financing activities Property, plant and equipment (cont'd) 11. Machinery Freehold Construction and Motor vehicles Electrical Total land Buildings in progress equipment Renovation fittings $'000 Furniture Group Computers $'000 $'000 $000 $'000 $'000 $'000 $'000 $'000 $'000 Accumulated depreciation 1 April 2017 2,216 2,395 7,554 6,948 1,748 1,084 21,945 Depreciation charge for the year 311 1,375 521 1,553 463 494 314 5,031 (598) (598) (1,666) Disposals Written off (128) (894) (294) (329) (21) At 31 March 2018 and 1 April 2018 2,139 24,712 311 8,801 7,607 1,917 2,560 1,377 Depreciation charge for the year 5,262 353 1,484 540 1,605 495 516 269 Disposals (465) (465) (391) (829) (228) (328) (24) Written off (1,800) 8.383 2,184 At 31 March 2019 664 9,894 2214 2,748 1,622 27,709 Net carrying amount: At 1 April 2017 7,333 5,042 1,132 4,045 853 5,209 1,784 1,410 763 27,571 31,560 28,453 At 31 March 2018 916 11,611 7,958 1,823 4,457 2,730 1,342 723 At 31 March 2019 897 11,245 6,874 1,593 3,759 2,397 1.158 530 The cash outflow on acquisition of property, plant and equipment amounted to $2,144,000 (2018: $8,524,000) Assets held under finance leases During the year, the Group acquired motor vehicles with an aggregate cost of $310,000 (2018: $1,260,000) by means of finance leases. The net carrying amount of motor vehicles held under finance leases as at 31 March 2019 was $1,273,000 (2018: $1,233,000) Leased assets are pledged as security for the related finance lease liabilities (Note 26) 19 OLD CHANG KeE AnnuAL REPORT 2019 Balance Sheets As At 31 March 2019 Note Group Company 1 April 31 arch 1 April 2017 31 March 2019 31 March 2018 31 March 2019 2018 2017 $'000 S'000 $'000 $'000 $'000 $'000 Non-current assets Property, plant and equipment 28,453 31,560 11 27,571 Intangible assets 12 228 289 352 Investment in subsidiaries 5,640 5,640 13 5.640 Investment in unquoted shares 64 234 14 234 273 64 273 Investment in associates and joint venture 15 160 461 537 537 Long term deposits 17 2,568 2,434 2,024 31,643 34,808 30,220 6,411 6,241 5,913 Current assets Inventories 18 1,097 1,192 705 Trade and other receivables 19 336 277 253 1,015 Deposits 17 756 1,040 24 1,013 1,192 Prepayments 2,939 41 24 Amount due from joint venture Amounts due from associates 16 494 282 16 131