Case Study Analysis Chrisha is a limited liability company. You have been employed as the Assistant Financial Controller and have been assigned to prepare the year-end financial statements, in particular the Statement of Comprehensive Income. After a detailed discussion with your supervisor, you were presented with the following trial balance as of 31 December 2019: Dr S000 Cr S000 250 126 1,180 88 9,427 290 166 27 130 6,248 610 311 58 Distribution costs Administrative expenses Salaries Discounts received Sales Property expenses Returns inward Cash Insurance Purchases Inventory at 1 January 2018 Bank Loan note interest Share premium account Retained earnings at 1 January 2018 Allowance for receivables at 1 January 2018 Trade payables Trade receivables 7% Loan notes Receivables expense $1 Ordinary shares Dividends paid: Final for year ended 31 December 2018 Land at cost Buildings at cost Motor vehicles at cost 350 875 70 507 1,700 822 260 2.850 200 1,295 2,640 420 800 625 Furniture and equipment at cost Accumulated depreciation at 1 January 2018 Buildings Motor vehicles Furniture and equipment 140 335 16,400 16,400 Further information relating to the company is as follows: i. The insurance includes $10,000 which relates to January 2020. ii. Buildings are depreciated at 5% of the cost. Building depreciation during the year is allocated 50% to distribution costs and 50% to administrative expenses. iii. On 31 December 2019 the buildings were professionally valued at $3,150,000 and the directors wish this valuation to be incorporated into the accounts. iv. Depreciation is to be charged as follows: a. Motor vehicles at 25% of written down valuc, allocated to distribution costs b. Furniture and equipment at 20% of the cost, allocated to administrative expenses. V. Inventory on 31 December 2019 was valued at $480,000 based on its original cost. vi. Based on past experience the allowance for receivables is to be increased to 5% of trade receivables and allocated to administrative expenses. vii. There are salaries outstanding of $60,000 for the year ended 31 December 2019, vii. The items listed below should be apportioned as indicated: ix. Cost of Sales Distribution Administrative Costs Expenses Property expenses 20% 30% 50% Insurance 20% 40% 40% Salaries 25% 40% Discounts received 100% X. Tax of $120,000 is to be provided for the year. 35% Required: A. Prepare the statement of comprehensive income for the year ended 31 December 2019 for Chrisha Ltd in accordance with IAS 1, Presentation of Financial Statements. B. The Accounting Clerk in your department overheard the conversation with your supervisor and would like you to explain the rationale behind the difference between the Income Statement and the Statement of Comprehensive Income. c. Prepare detailed workings to show the amount included as other comprehensive income. Case Study Analysis Chrisha is a limited liability company. You have been employed as the Assistant Financial Controller and have been assigned to prepare the year-end financial statements, in particular the Statement of Comprehensive Income. After a detailed discussion with your supervisor, you were presented with the following trial balance as of 31 December 2019: Dr S000 Cr S000 250 126 1,180 88 9,427 290 166 27 130 6,248 610 311 58 Distribution costs Administrative expenses Salaries Discounts received Sales Property expenses Returns inward Cash Insurance Purchases Inventory at 1 January 2018 Bank Loan note interest Share premium account Retained earnings at 1 January 2018 Allowance for receivables at 1 January 2018 Trade payables Trade receivables 7% Loan notes Receivables expense $1 Ordinary shares Dividends paid: Final for year ended 31 December 2018 Land at cost Buildings at cost Motor vehicles at cost 350 875 70 507 1,700 822 260 2.850 200 1,295 2,640 420 800 625 Furniture and equipment at cost Accumulated depreciation at 1 January 2018 Buildings Motor vehicles Furniture and equipment 140 335 16,400 16,400 Further information relating to the company is as follows: i. The insurance includes $10,000 which relates to January 2020. ii. Buildings are depreciated at 5% of the cost. Building depreciation during the year is allocated 50% to distribution costs and 50% to administrative expenses. iii. On 31 December 2019 the buildings were professionally valued at $3,150,000 and the directors wish this valuation to be incorporated into the accounts. iv. Depreciation is to be charged as follows: a. Motor vehicles at 25% of written down valuc, allocated to distribution costs b. Furniture and equipment at 20% of the cost, allocated to administrative expenses. V. Inventory on 31 December 2019 was valued at $480,000 based on its original cost. vi. Based on past experience the allowance for receivables is to be increased to 5% of trade receivables and allocated to administrative expenses. vii. There are salaries outstanding of $60,000 for the year ended 31 December 2019, vii. The items listed below should be apportioned as indicated: ix. Cost of Sales Distribution Administrative Costs Expenses Property expenses 20% 30% 50% Insurance 20% 40% 40% Salaries 25% 40% Discounts received 100% X. Tax of $120,000 is to be provided for the year. 35% Required: A. Prepare the statement of comprehensive income for the year ended 31 December 2019 for Chrisha Ltd in accordance with IAS 1, Presentation of Financial Statements. B. The Accounting Clerk in your department overheard the conversation with your supervisor and would like you to explain the rationale behind the difference between the Income Statement and the Statement of Comprehensive Income. c. Prepare detailed workings to show the amount included as other comprehensive income