Case study 4: XYZ Company SAOG("the Company") is a joint stock company registered with the Ministry of Commerce and Industry on 4 April 1999, in accordance with the provisions of the Commercial Companies Law 1974, as amended, of the Sultanate of Oman. The Company's principal activity is the manufacturing of construction material. The Company's principal place of business is located at Salalah, Sultanate of Oman. The given below are the details of the balances as at the end of the year 2019: Property plant and equipment includes the following assets as given below with their respective amounts of cost and accumulated depreciation as at the year-end: Cost RO Accumulated Depreciation RO Land and Buildings 5,864,280 2.079,350 Plant and Machinery 12.103.651 846.091 Engineering equipment Furniture and fixtures 543,384 447,191 Office equipment Motor vans 508,697 274,210 215,001 211,003 890,243 596.327 The depreciation was charged for the year as follows: Land and Buildings Plant and Machinery Engineering equipment Furniture and fixtures Office equipment Motor vans RO 311,985 1,266.636 10,508 68,034 97,930 74,284 Depreciation on Land and buildings, Plant and Machinery, Engineering equipment are included in cost of sales. Depreciation on furniture and fixtures and office equipment to be included in Office expenses and Depreciation on Motor van to be included in selling and distribution expenses Other income has the following: Loss on sale of Equipment's RO 326, Rent received RO 26,688 and Interest and dividend income RO 31,981 Salaries and other related staff costs includes: Salaries RO 718,865, Other related staff costs RO 1,178,085 Share capital: The authorised share capital of the Company consists of 125,000,000 shares of Rial 0.200 each. The issued and paid-up share capital of the Company consists of 117,545,110 shares. General and administrative expenses has the following expenditures: Vehicle maintenance and insurance RO 105,178, Travelling and conveyance RO 42,271, Office rent RO 29,038, Registration and License fees RO 47,284, Repairs and maintenance RO 20,029, Directors' remuneration RO 107,350, other general expenses RO 45,120 Trade and other payables include the following: Trade payables RO 1,434,185, Other accrued expenses RO 1,235,979, Advances from customers RO 47,426, Other creditors RO 2,041,167, Other payables RO 39,969. Other taxes payables RO 5,635, Directors' remuneration payables RO 100,000. Inventories includes Raw materials RO 1,215,530, Stores and spares RO 735,826, Work-in-progress RO 45,073, Finished goods RO 958,761, Packing materials RO 104,498. Cash and Bank balance as of the year end includes cash in hand RO 2,000 and Current account balances with banks RO 2.052,196. Trade and other receivables for the year end accounted to trade receivables RO 5,489,884, Other receivables and advances RO 317,686, Accrued Income RO 302,183, Pre-payments RO 86,611, Advances RO 55,142. Cost of Sales for the year includes: Cost of raw materials and consumables RO 8,631,263, Direct wages RO 1,686,118, Repairs and maintenance RO 1,059,959 Other factory overheads RO 160,205 Staff end of service benefits amounted to RO 564,998, and the balance of Loan from Bank was RO 267,000 Tax related expenses: The total Income tax expense for the year amounted to 1,068,913, Provision for tax 1,080,417 and deferred tax liability RO 306,509 The turnover for the year amounted to RO 27,199,417. The balances of the reserves and surplus are as follows: legal reserve RO 4,319,008, Retained earings balance before adjusting the net profit for the year RO 1,340,742 Selling and distribution expense are Carriage outward charges RO 2,032,501, Advertising expenses RO 434,564, Salesman commission RO 158,943 The Interest expenses for the year totaled to RO 17,713 For the year there was unrealized gain on Fair value changes on available for sale investments RO 69,904 The company also had at the end of the year the balance of Available-for-sale investments - Long term RO 7,651,000, Non-current portion of held-to-maturity investments 4,939,902, current portion of held- to-maturity investments RO 4,549,755. Basic earnings per share is calculated by dividing the net profit for the year by the number of shares outstanding during the year Net assets per share is calculated by dividing the net assets or total equity at the end of the reporting period by the number of shares outstanding. You are required to prepare Statement of Comprehensive Income and Statement of Financial position for the year ended 2019 in accordance with IFRS and other governing laws and practices followed in Oman. (15 marks)