Frireque Ltd is a registered company in Botswana according to the Botswana Act . The company manufactures ladies purses and also sells football jerseys. Due to challenges in business because of vovid 19 challenges, the company faced importation difficulties and they decided to close down the ladies purses business at the middle of their year end. Their year end is 31 December 2021. During that time, the management agreed to sale all the non current assets relating to the purse business and they incurred losses on disposal of P152,000 and P74,000 redundancy costs. A plan to restructure the football jerseys business was put on emotion at a cost of P196,000.

Football jersey Ladies purses

BWP '000 BWP '000

Revenue 1,300 640

Cost of sales 640 300

Distribution 120 180

Administration 240 220

Additional trading financial information: The additional costs have to be allocated to continuous operations) Finance costs were P34 000 and Tax was P62,000.

Required

(a) Prepare income statement for Frireque Ltd the year ended 31 December 2021

(b) Describe and explain how IFRS 5 discontinued operations presentation will help provide financial information to the users of financial statements to make informed decisions . NOTE: . Show all your workings.

(c) Illustrate why Conceptual Framework is critical in financial reporting