Compuware (Pty) Ltd is an established company within the technology industry specialising in the design, manufacture, and retail of electronic devices such as computers, computer accessories, and software. You have been provided with draft extracts from the entity's Statement of Profit or Loss and Other Comprehensive Income and the Statement of Financial Position for the financial year ended 31 December 2023. COMPUWARE (PTY) LTD DRAFT EXTRACT FROM THE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023 COMPUWARE (PTY) LTD DRAFT EXTRACT FROM THE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 The following additional information has been provided which has not yet been considered during the preparation of the draft financial statements: - During December 2023, it was discovered that the cost of an item of inventory sold on 30 June 2021 costing R400 000, had been incorrectly debited to the equipment account at the time it was sold. - The taxable profit and tax base of equipment were correctly computed in all the financial years affected. - Compuware (Pty) Ltd depreciates all equipment at 20% per annum on a straightline basis. The equipment has a Rnil residual value. The carrying value and tax base of the equipment are the same. Additional information: - The opening retained earnings balance on 1 January 2022 was R900 000. There were no dividends declared or paid as well as no transfers to or from retained earnings during 2022 and 2023. - There were no other movements in property, plant, and equipment other than that which is evident from the information provided. Other than the incorrect debit of inventory to the equipment account, all movements in the carrying amount of equipment since its date of acquisition are depreciation. - Consider all amounts to be material. - The income tax rate applicable for all three financial years ending on 31 March 2023 is 28%. 2.1) Calculate the effect of the prior period error on the statement of profit or loss and other comprehensive income and the statement of financial position for the financial year ending 31 December 2021 (i.e. the year in which the error occurred). (16 marks) 2.2) Disclose the prior period error in the notes to the annual financial statements of Compuware (Pty) Ltd for the year ended 31 December 2023 so as to comply with the IAS 8 of the International Financial Reporting Standards. (21 marks) 2.3) Prepare all the necessary general journal adjustments to account for the prior period error in the 31 December 2023 financial statements of Compuware (Pty) Ltd. Journal dates and narrations are not required. (10 marks) Note: - All amounts should be rounded to the nearest Rand. Show all calculations clearly. - Your answer must comply with International Financial Reporting Standards (IFRS)