Fiter Plc is a pharmaceuticals company that is into the business of research and manufacture of new vaccines for rare and critical diseases. The company's financial year ended on 30 September 2019. The following information is provided to you and each case you are required to determine how the transactions would appear in Fiter's financial statements at the financial year end. You are required to prepare only one set of financial statements reflecting all the transactions. You are also required to provide necessary notes and disclosures referring to the specific reporting standards based on which you have reported the figures. a. Fiter. Plc reviewed its Property Plant and Equipment (PPE) on 31 March 2019 and found that one of its equipment was disoriented. As a result, the equipment is not able to function efficiently. The end of the year review shows that if the company continued using the equipment, it would generate future cash flows with present value of 20,000. However, selling the equipment would generate gross cash flow of 22,000. The company will have to spend 3,000 to sell this equipment. The equipment was historically purchased on 1 October 2016 for a price of 76,800. The company follows a standard policy of depreciating all its PPE at 30%, reducing balance method. Fiter's CFO has suggested that should the company replace this equipment, an equivalent of this will cost 112,000. The company's draft trial balance at 30 September 2019 shows a figure of 181,600 recorded at its net book value prior to any adjustment in respect of the disoriented equipment. Nor has company provided depreciation for the year 2018/19. The company records depreciation on plant and equipment under cost of goods sold. b. Fiter. Plc's draft trial balance had intangible assets worth 550,800 which was spent on Research & Development related activities as well as for Patents. Of the R&D costs, 52,000 was spent on research activities, while 373,000 was spent on development of two new products 'Alpha' and 'Beta'. Additionally, an amount of 19,200 was spent for pre-launch testing of Alpha and 11,800 on staff training. Both these costs were capitalised as Intangibles Out of the total development expenses, 236,000 was spent on product Alpha' which was declared commercially viable on 1 October 2018. The product was launched on 1 April 2019 and was considered to have a useful life of 2 years after which the product will become obsolete. The remaining of the development costs were incurred on product 'Beta', which the company is yet to launch. The Board feels that 'Beta' is not sufficiently ready generate future economic benefits. The patent acquired on 1 May 2018, costing 6,000 was sold just after holding it for one year, at its carrying amount. These patents had an estimated useful life of 2 years from the date of acquisition. Amount included in the intangibles of the draft trial balance is the carrying value of the patents worked out as cost (118,000) reduced by accumulated amortisation (23,200). The remaining patents are to be amortized at the rate of 50% on BUSI2150-1 3 BUSI2150-E1 cost. Neither the sale of the intangibles nor the amortisation for the year was recorded by the company. c. During the preparation of the financial statements for the year ended 30 September 2019, the chief accountant noticed that there was an error in the closing balance of the previous year receivables. The closing receivables figure at 30 September 2018 was recorded as 42,800 instead of 24,800 which had also overstated the revenues by 18,000 for the year ended 30 September 2018. The chief accountant believes that the figure is material. Explain with reference to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, how this error can be adjusted also providing the appropriate disclosures that may be required in this case