Below are extracts from the financial statements of Thai Thai Ltd:

Statement of profit or loss for the year ended 31 March 2020

P

Revenue 30,650

Cost of sales (26,000)

Gross profit 4,650

Distribution costs (900)

Administrative expenses (500)

Profit from operations 3,250

Investment income 680

Finance costs (400)

Profit before tax 3,530

Income tax expense (300)

Profit for the period 3,230

Statements of financial position

31 March 2020 31 March 2019

P P P P

Assets

Non-current assets

Property, plant and equipment 2,280 850

Investments 2,500 2,500

4,780 3,350

Current assets

Inventories 1,000 1,950

Trade and other receivables 1,900 1,200

Cash and cash equivalents 410 160

3,310 3,310

Total assets 8,090 6,660

Equity and liabilities

Capital and reserves

Share capital 1,000 900

Share premium 500 350

Retained earnings 3,410 1,300

4,910 2,630

Non-current liabilities

Long term borrowings (including leases) 2,300 1,040

Trade and other payables Interest payable Taxation 250 230 400 1,890 100 1,000 880 2,990 Total equity and liabilities 8,090 6,660 Additional information: Profit from operations is after charging depreciation on the property, plant and equipment of P450. . During the year ended 31 March 2020, plant and machinery costing P80 and with accumulated depreciation of P60, was sold for P20 . During the year ended 31 March 2020, the company acquired property, plant and equipment costing P1.900, of which P900 was acquired by means of lease. Cash payments of P1,000 were made to purchase property, plant and equipment.. P90 was paid under the lease, . The receivables at the end of 2020 includes P100 of interest receivable. There was no equivalent balance at the beginning of the year Investment income of P680 is made up of P300 interest receivable and P380 dividends received. Dividends paid during the year were P1,200. Required: Prepare a statement of cash flows for Poochie Ltd for the year ended 31 March 2020 in compliance with LAS 7 Statement of Cash Flows. Question 2 (20) a) On Dec year 4, entity H is half way through an eight year operating lease on its factory when it moves to the new factory. Amnual lease payments are M60,000. It can not cancel the lease or sub-lease the factory. Required: Consider whether or not the conditions for making provision are met, and at what amount if any provision should be made? (10) b) Entity G has a financial year ending on December. On 15 December year 1, an employee was injured in the work place and has sued the entity under the current health and safety legislation. Entity G solicitors believe that the employee claim has a 60% chance of success. And the solicitors estimate that if successful, the claim should be M20,000 Required: Consider whether or not entity G should provide for the claim at 31 December year 1, and if so, what amount? (10) Ett Date: 16-03-2021 QP - ASM-001 Rev 005 II Page 3 of 3