INTERIM ASSESSMENT 2022-FINANCIAL REPORTING BUSINESS ADMINISTRATION LEVEL 300 QUESTION 1 The following additional information is relevant: i. The closing inventories at 3151 December, 2019 were valued at a cost of GHc750.000. due to some slow moving products the company intends to offer a discount of 10% on the cost resulting in a net realizable value of GHc675,000. ii. The balance of the corporation tax account represents an under provision of tax for the previous year. Corporate tax applicable to the firm is 25%. iii. The company decided to change it accounting policy svith respect to its investment property from "Cost model "to fair value model" as per IAS 40 Investment property. On 31st December 2019 a qualified surveyor valued the Investment property up by GHe188,000. This decision is yet to be accounted for in the books of the company. iv. Non Current Assets: - Depreciation of property, plant and equipment is to be provided on the following basis Plant and equipment 10% on cost- Cost of sales Computer equipment 25% on cost - Administrative expenses Motor v0ehicle 20% on cost - Distribution cost - No depreciation has yet been charged on any non-current asset for the year ended 31st December 2019 - Washawasay Limited revalues its building at the end of each accounting year. At 31st December, 2019 , the relevant value to be incorporated into the financial statement is GHC2,500.000 - The buildings remaining life at the beginning of the current year ( 1st January, 2019) was 50 years. Washawasay limited does not make an annual transfer from the revaluation reserve to retained earnings in respect of the realization of the revaluation surplus. Ignore deferred tax on the revaluation surplus. v. The company paid ordinary dividend of GHe371,200 on 31st December, 2019. The dividend payments are included in the administration expenses in the trial balance. vi. The balance in the suspense account represents the cash proceeds from the issue of 50,000 ordinary share at GH\&2.00 each. Required In compliance with the company's code provision and in conformity with relevant International Financial Reporting Standard, prepare for publication. A. Statement of Profit or Loss and other Comprehensive income for the year ended 31st December, 2019 B. Statement of changes in equity for the year ended 31st December, 2019 C. Statement of Financial position as at 31st December, 2019 ; Show clearly all relevant workings (Note: Accounting policy notes are required) INTERIM ASSESSMENT 2022-FINANCIAL REPORTING BUSINESS ADMINISTRATION LEVEL 300 QUESTION 1 The following additional information is relevant: i. The closing inventories at 3151 December, 2019 were valued at a cost of GHc750.000. due to some slow moving products the company intends to offer a discount of 10% on the cost resulting in a net realizable value of GHc675,000. ii. The balance of the corporation tax account represents an under provision of tax for the previous year. Corporate tax applicable to the firm is 25%. iii. The company decided to change it accounting policy svith respect to its investment property from "Cost model "to fair value model" as per IAS 40 Investment property. On 31st December 2019 a qualified surveyor valued the Investment property up by GHe188,000. This decision is yet to be accounted for in the books of the company. iv. Non Current Assets: - Depreciation of property, plant and equipment is to be provided on the following basis Plant and equipment 10% on cost- Cost of sales Computer equipment 25% on cost - Administrative expenses Motor v0ehicle 20% on cost - Distribution cost - No depreciation has yet been charged on any non-current asset for the year ended 31st December 2019 - Washawasay Limited revalues its building at the end of each accounting year. At 31st December, 2019 , the relevant value to be incorporated into the financial statement is GHC2,500.000 - The buildings remaining life at the beginning of the current year ( 1st January, 2019) was 50 years. Washawasay limited does not make an annual transfer from the revaluation reserve to retained earnings in respect of the realization of the revaluation surplus. Ignore deferred tax on the revaluation surplus. v. The company paid ordinary dividend of GHe371,200 on 31st December, 2019. The dividend payments are included in the administration expenses in the trial balance. vi. The balance in the suspense account represents the cash proceeds from the issue of 50,000 ordinary share at GH\&2.00 each. Required In compliance with the company's code provision and in conformity with relevant International Financial Reporting Standard, prepare for publication. A. Statement of Profit or Loss and other Comprehensive income for the year ended 31st December, 2019 B. Statement of changes in equity for the year ended 31st December, 2019 C. Statement of Financial position as at 31st December, 2019 ; Show clearly all relevant workings (Note: Accounting policy notes are required)