Hi

How will my

a) Statement of financial position look like?

b) how will i draw the statement of profit and loss

Following information has been ext actod from the dratt financial statements of Marvebus Limited (ML.) for the year ended 30 June 2022: Statement of financial position Statement of profit or loss The following matters are under consideration of the management: It was identified that ML's obligation to incur decommissioning cost related to a plant has not been recognised. The plant was acquired on 1 July 2019 and had been depreciated on straight line basis over a useful life of four years. The expected cost of decommissioning at the end of the life is R50 000. Applicable discount rate is 8%. In view of significant change in the expected pattern of economic benefits from an item of the equipment, it has been decided to change the depreciation method from reducing balance to straight line. The equipment was purchased on 1 July 2020 at a cost of R80 000 having estimated useful life of 5 years and residual value of R16 000 . The depreciabon at the rate of 27.5% on reducing balance method is included in the above draft financial statements. The following balances pertain to ML's statement of financial position as on 30 June 2020: Applicable tax rate is 30%. Tax authorities consider decommissioning cost as an expense when pala. (30 MARKS) QUESTION 1 Required: Prepare extracts from the following (including comparative figures) for the year ended 30 June 2022: (a) Statement of financial position (b) Correction of error note and changes in estimate