Asetrapa Ltd is a listed company reporting under IFRS. During the year ended 31 December, 2012, the company changed its accounting policy with respect to property valuation. There are also a number of other issues that need to be finalized before the financial statement can be published. Asetrapa Lid's trial balance from the general ledger at 31st December, 2012 showed the following balances: GH 000 GH'000 2.648 3 1,669 514 345 6 444 545 Inventories 434 Crade payable 28 Revenue Loan note interest paid Purchases Distribution cost Administrative expenses Interim dividend paid at 1st January, 2012 Trade receivable Cash and cash equivalent Stated capital (ordinary shares issued at 50p) Capital surplus Retained eamings at 1st January, 2012 4% loan note repayable 2018 (issued 2010) Land and buildings: cost (including GHC120m land, Accumulated depreciation at 1st January, 2012 Plant and equipment: cost, Accumulated depreciation at 1st January, 2012 Investment property at 1st January, 2012 Rental income Proceeds from sale of equipment 100 314 849 150 380 64 258 126 548 48 7 4,740 4,740 Further information to be taken into account: (a) Closing inventories were counted and amounted to GHC388m at cost. However, shortly after the year end out-of-date inventories with a cost of GHC15m were sold for GHC8m. b) The company decided to change its accounting policy with respect to its 10 year old land and buildings from the cost model to the revaluation model. The revaluation amounts at 1st January, 2012 were GHC800m (including GHC100m for the land). No further revaluation was necessary a 31st December, 2012. The company wishes to treat the revaluation surplus as being realized over the life of the assets. (c) Due to a change in the company's product portfolio plans, an item of plant with a carrying value GHC22m at 31st December, 2011 (after adjusting for depreciation for the year) may be impaired due to change in use. An impaiment test conducted at 31st December, 2012, revealed 2 its fair value less costs to sell to be GHC16m. The asset is now expected to generate an annual net income stream of GHC3.8m for the next 5 years at which point the asset would be disposed for GHC4.2m. An appropriate discount rate is 8%. 5 year discount factors at 8% are: Simple Cumulative 0.677 3.993 (d) The income tax liability for the year is estimated at GHC27m. Ignore deferred tax. (e) An interim dividend of 3p per share was paid on 30th June, 2012. A final dividend of 1.5p per share was declared by the directors on 28th January, 2013. (1) During the year, Asetrapa Co. disposed of some malfunctioning equipment for GHC7m. The equipment had cost GHC15m and had accumulated depreciation brought forward at Ist January 2012 of GHC3m. There were no other additions or disposal to property, plant and equipment in the year. (a) Closing inventories were counted and amounted to GHC388m at cost. However, shortly after the year end out-of-date inventories with a cost of GHC15m were sold for GHC8m. (b) The company decided to change its accounting policy with respect to its 10 year old land and buildings from the cost model to the revaluation model. The revaluation amounts at 1st January, 2012 were GHC800m (including GHC100m for the land). No further revaluation was necessary at 31st December, 2012. The company wishes to treat the revaluation surplus as being realized over the life of the assets. (c) Due to a change in the company's product portfolio plans, an item of plant with a carrying value GHC22m at 31st December, 2011 (after adjusting for depreciation for the year) may be impaired due to change in use. An impairment test conducted at 31st December, 2012, revealed 2 its fair value less costs to sell to be GHC16m. The asset is now expected to generate an annual net income stream of GHC3.8m for the next 5 years at which point the asset would be disposed for GHC4.2m. An appropriate discount rate is 8%.5 year discount factors at 8% are: Simple Cumulative 0.677 3.993 (d) The income tax liability for the year is estimated at GHC27m. Ignore deferred tax. (e) An interim dividend of 3p per share was paid on 30th June, 2012. A final dividend of 1.5p per share was declared by the directors on 28th January, 2013. (1) During the year, Asetrapa Co. disposed of some malfunctioning equipment for GHC7m. The equipment had cost GHC15m and had accumulated depreciation brought forward at 1st January 2012 of GHC3m. There were no other additions or disposal to property, plant and equipment in the year. (g) The company treats depreciation on plant and equipment as a cost of sale and on land and buildings as an administration cost. Depreciation rates as per the company's accounting policy notes are as follows: Buildings Straight line over 50 years Plant and equipment 20% reducing balance Asetrapa Ltd's accounting policy is to charge a full years depreciation in the year of an asset's purchase and none in the year of disposal. (h) On 1st July 2012, Asetrapa Ltd made a bonus issue of 1 share for every 4 held capitalizing its retained earings. This transaction has not yet been accounted for. The fair value of the company's shares on the date of the bonus issue was GHC7.50 each. 1) Asetrapa Ltd uses the fair value model of IAS 40. The fair value of the investment property at 31st December, 2012 was GHC586m. Required: (a) Prepare Statement of profit or loss and other comprehensive income for the year ended 31st December 2012; (b)Prepare Statement of changes in equity for the year ended 31st December 2012 (c) Prepare Statement of financial position as at 31st December 2012 (Work to nearest 1 million Ghana Cedis)