Bonnie Ltd sells car batteries, with branches Rundu and Okahandja. The branch in Okahandja has incurred losses for the past two years. The board of Bonnie Ltd approved a formal plan for the discontinuance of the Rundu branch on the 31 July 2020. The board had approved a formal document for the piecemeal sale of the assets of the branch and redemption of liabilities on the same day. The branch closure has been published in the Namibian news papers on the 01 September 2021 and all assets placed for sale on marked prices. The board does expect the discontinuance of the Rundu branch to be completed by the 31 March 2021. 

The following information relates to the financial period ended 31 December 2020 before the discontinued operations :

a) Discuss whether the closure of the Rundu branch qualifies to be classified as non-current assets held for sale, as per requirements of IFRS 15 (10) 

b) Prepare the statement of profit and loss and other comprehensive income for Bonnie Ltd for the period ended 31 December 2020 (10) 

c) Prepare the notes to the financial statements for Bonnie Ltd for the period ended 31 December 2021. Notes should include the below: 

-Accounting policies (5) 

- Discontinued operations (10) 

-Non-current assets held for sale (5)

Revenue Cost of sales Other operating expenses Operating expenses Finance Costs Finance Income Dividends paid Additional Information: 1. Information in respect of the Rundu branch relating to the discontinued operations Direct costs of discontinued operations Severance pay to employees losing office Cost of sales Operating expenses Revenue Fines for breach of contracts Property Plant and Equipment Trade debtors Long term Liabilities Trade creditors Furnitures and Fittings Rundu Land Plant and equipment Additional information on the sale of assets and liabilities of the discontinued operations Rundu 01/01/2020-30/07/2020 Okahandja 500,000.00 300,000.00 70,000.00 150,000.00 50,000.00 50,000.00 01/01/2021-31/03/2021 Rundu 300,000.00 15,000.00 200,000.00 50,000.00 50,000.00 1,500,000.00 300,000.00 75,000.00 200,000.00 100,000.00 50,000.00 100,000.00 80,000.00 50,000.00 100,000.00 90,000.00 90,000.00 300,000.00 35,000.00 Okahandja 400,000.00 300,000.00 200,000.00 70,000.00 50,000.00 Carrying amount Price per catalogue 105,000.00 50,000.00 01/09/2020-31/12/2020 Okahandja Rundu 300,000.00 1,200,000.00 50,000.00 250,000.00 65,000.00 100,000.00 50,000.00 45,000.00 50,000.00 50,000.00 30,000.00 40,000.00 30,000.00 01/09/2020-31/12/2020 Rundu 25,000.00