Intermediate Financial Accouting, i really dont understand please help me

The following details are decmed relevant to the propuratied of the diraft fiesancial statements which are is be presered ae the cerity's aradern: Which are to be presented to the exaity's auditors: Property, plant and equipmeat Sabsequent to a revaluatioe exercise which took place on March 31, 2022, the land had a fair value of 5244 million, while the building had a fair value of 58.37 millice. The building is depreciated evenly over forty years to a nill residual value, with the charges allecated in a 3:1 ratio between administrative expenves and coss of sales. There have becn no adfustments made for the revaluations in the curred period, asd their effects have not been included in the accumulaled semporary differences noted below. The capital allewances granled on the bexilding to date ase equivalent to the accumulaied depreciation charged agaizst it. Four months into the financial year, the entity bought a motor vehicle for 511.7 millien, bur inadvertenily recorded the debit to misectlancous expenses. Motor velaicles are depreciated on a straight line basis over eight years to a nil residual value. All depecciation charges on motor vehicles are to be allocated to distribution conts. Additionally, managenscat bought a conveyor system costing 513,9 million halfuay thaugh the financial year, which it is yet to record in the books. The system is compeised of two components: one of which has a useful life of 25 years, whille the other coenpoecent has to be replaced every eight years. The latter coenponexh acceants for 12\% of the toeal cost of the system. Associated depreciation charges are allocated in full to distribution conts. Fixtures and fittings and machinery are to be depecciated I2\% on the reducing balance and 95 . an cost respectively, while equipment is to be depreciated over cight years on a straight line busis down to a residual valoe of 10se of cost. The deprectation on fixtures and fittings is charged to other eperating expenses, while for machinery as well as equipenent, depecciation charges are allocated equally betwoen cost of sales and administrative expenses. During the year, managcment commenced processes fo sell all of its cxisting machinery to factlitate a major upgrade project. The sale was decmed highly prohable effective July 1. 2021 when a buycr was identified. The items have a combinod fair value of 599 million, with disposal corsts amodinting to 56.2 mallion. Aay impaisment or gain on the trankaction whould be recognived in other operating expensex. Included in miscellancous expenses is a icase payment which relates lo the rental of manufacturing equipmeat with a femaining useful life of theee years. The agrecment coenmenced on April 1, 2021, and requires that a fotal of five annual poyments of $9.4 millioe are made - an cighth of which relates to maintenance expenses, and another 5% of which is atributable to insurance expezses. Maintenance and insurance cypenses are ordinarily classificd as cether operating expenses. The lease agreement also speaks to a guaranteed revidual value of $6 million, and permits the cutension of the lease by an additional two ycan. Managcment is ccufident that the conmpany should receive the intended benefits firom the leased aset within the agreed period, which would negate the need to exiend the contract. The incresnental borrewing rate is 6 *. while the interest rate implicit in the lease is 200 basis peints higher. The 59,4 million payment debited to mivecllancous expetses is the caly second of the lease transaction that has becn made to date. Alwo dehited to miscellancous expenses is 50.9 mallion for legal fees incurred to draft the lease agreement on April 1, 2021, whalle a lease incentive of $550,000 which was received by cheque has yet te be recorded. Depreciation on the right of use asset is 10 be shared equally hetwect cos af uales, administrative expenses, and other openatiag expenses. The entity prefers to show the leased asset separately within its property, plant and cquipenent for prevemiatich purposes. Goodwill is to be impairod by I8\%, with the ingairment ctarped to other operating cypenses. The paters is to be armortesed over 18 yeats to a nil residual valuc, charged so ether operating expenses, while the tradematk and coprright are boeh artortived over a 13-year period, widh charges going to cost of salex. On February 28, 2022, the entity acquired a brand for $81 million, but the transaction has sod yer been recoeded or otherwise accounted for in the books. The brand should be fully amortived ever a 22-ycar period, with charges going to cost of ales and time-apportioned as necessary. Of the iotal R\&D cost on record, thife relates to rescarch cost, while the balance relates to development. Three-cighths of the amonant recopaised as develupenent cost was incarred between 5 Scplenher 1, 2021 to November 30, 2021. The product achicved commercial feasibility an December 1. 2021. Any capialised elechopmeat coel is to be amoqtived ever twelve years and charged to cest of sales, with time apportientent where nesessary. Any nath-capitalised sesearat and devefopenent cost shosld be charged to othet operating experives. Orher liahilities The contingent liabilisy reflected in the tral balance relates to a cuscener lauseri for which the chance of payout has been decmed as persible by the entity's atwencys. The ameunt was recoeded in other operatizg experaes. The cratity"s attorneys bave also advised that another laxsyit with which the company is currenthy faced has a probabie chance of paycest of 53.6 million. This amovant has not been accounted foct. Similar transactions are wsually recorded in other operating expenses. Neither of these transactions will have an effect on the accumulated tenipoeary diffetchces noted helow; Debt iestruments On April 1. 2021, the company issued a 6. convertible debeature, a oneloan note, and a 4, debenture with effective interest rates of 36,3% and 6.5% respectively. The convertible debenture has a nominal value of $2k5 million and is redecmable at the cnd of the fourth year, while the loan note has a nominal value of 5360 million, was issocd at a 6.8% tisceunt with issac coust of 53.243 million, and is redecmable atict five years at a 75 pecmium. The regular debenture has a noeminal value of 5122 miltion and ss redcemable after 3 years al an $ - prexnium. Ohly the coupon pryment relating to the coevertible dets instrument, which was incuerecthy debited to miscellancoeas expenses, has been secorded wo far, all other relevaet journal entries acress the three debt isvues remain unrecorded. Additionally, there are interest sams for the existing debt obligations reflected in the trial balance that remain unaccosoted for at the year cnd. Eqaity and reserves The par \&alue of each ordinary share is 50.80. On the first day of the fizancial year, the entity decided to make a boceas tssue of thee new shares for every tee existing shares held. Subsequently, there was a two for eleven rights issae on Oetoher 31,2021 a 51.35 per share. The market price per share at that dase was 52.20. The bens and rights issues have ace yet beea receeded. In the case of the bonus issue, managenent s preference is to peeserve the retained eansings balance insofar as is possible. Additieedlly, the revaluative reserve may be used enly to the extent that ether reserves have been exhaused. Dividends on the peeference shares are currently unpaid and remain unaccounted for at the year end. An imterien ordinary dividend amounting to $4.9 miltion was paid on heanry 1,2022 , but this is yet to be reconsed. A further final sedisary dividend was deelared en March 31,2022 for 50.05 per share held as at that date; this too is yet to be ascounted for. The decleded dividends were paid on August 1, 2022 A sum of 53.4 million is to be transferred from accumulated peofits to the general reserves. Trade receivables Of the trade receivables figure currently reported, $2.1 million relates to a receivables tulance that was already paid by the cuastomer during the prior period, but the payment was never accounted for as the monies were stolea by an accounting clerk who has gone into hiding since. The tax effect on asy adjustiment to be made is to be ignored. The provision for bad debt is to be revised wo 12% of the adjused trade receivables balance. Adjastments relating to receivables are ondinarily recorded in administrative expenses. Discentinucd operations Included in administrative expenses is the net result of a fiscoekinued operation. An entire division with assets costing $542 million and accurmalated depreciation of $378 million was sold for $101 miltion. In additien to the sale, the entity also incurred redandancy costs of $29 million. The now discoetinued operation make profits of $126 million before accountiog for the cost of redundancies and the sale of its assets as cutlined above. The approgriate taxes on the profits for this segment were already accounted for. Inventary A final invertory count on March 31,2022 revealed that 56.8 million worth of inventory at cost had not yet been reconded Of that amoent, 7% was found to be obsolete and sould be written off. Inventory purchases are ordinanily recorded in cost of sales, but any write-offs are charged to othar operating expenues. Other inceme For intereg income, the amount showa in the trial balance repesenes only a half of the amoan earsed for the year, while foyalties earned but not yet received amount so $2.2 millice. Taxation Taxable profits reperted for the curent year of assessment amoumted to $477 miltion. The overprovision on the trial balance above relates to prior year taxes which bave since then paid. The entity has accumulated tacable temporary difference of $126 million, which does not include the effect of the revaluations on property. plant and equipenent. The defered tax asset currently seflected in the trial balance arose solely froen trascactions charged to the stanement of profit or lass. The current corporation tax rate is 30% Taxation Taxable profits reported for the current year of assessment amounted to $477 million. The overprovision on the trial balance above relates to priot year taxes which have since been paid. The entity has accumulated taxable temporary difference of $126 million, which does not include the effect of the revaluations on property, plant and equipment. The deferred tax asset currently reflected in the trial balance arose solely from transactions charged to the statement of profit or loss. The current corporation tax rate is 30%. REQUIRED: a) Prepare the statement of profit or loss and other comprehensive income for the year ended March 31, 2022 ( 91/2 marks) b) Prepare the statement of changes in equity for the year ended March 31, 2022 (14 marks) c) Prepare the statement of financial position as at March 31, 2022 (23 1/2 marks) d) Calculate the basic earnings per share for the year ended March 31, 2022 (3 marks) NB. The EPS calculations should take into account the impact of any additional shares issued during the year. e) Prepare all relevant workings and explanations, including, but not limited to: - comprehensive listing of AL.L journal entries - a fixed assets schedule - an intangible assets schedule - an expense schedule - all other appropriate supporting calculations (50 marks) NB. As there are well over 100 individual journal entries to be recorded, these are heavily weighted and so must be thoroughly and accurately done if maximum marks are to be achieved. Please note that you MUST cross-reference all composite figures presented in the financial statements to their associated workings though the use of note numbers. Additionally, workings must be presented in the same order as the note numbers to which they are assigned. Failure to comply with these instructions will result in marks being deducted. Below is the trial balance for Mediplex 1.td, a pharmaccuticals maswfactaring compang: Mediples Lad The following details are decmed relevant bo the pecparation of the draft financial statements aluich ate to be presented to the centity's atditore: Preperty, plase and equipotsat value of $244 million, while the tuilding tad a fair value of $k37 miltion. The bailding is depectiated everuly over foety yean 10 a nill revitudl valuc, with the charges allocated in a 3:1 ratis between almitistrative evpetmes and ont of alec. Thete have been no adjeitments made for the revalurions in the curemt period, and their effects tave not been included in the accumelated terepecary differecess noted below. The capital allowances graited on the builing to date are oquivalkat to the accumulated dogreciaticn chargod againat it inadecrently roceeded the deter to misecllanocus sopreses. Motor vehicles are depreciated on a velicker are bo be allecated to ditribution cuse. Addsonally, eanspanent boapht a convey of syster cosing 513.9 milison halfuay through the fizancial year, which is is yet to pecued in the tooks. The rystem is coerprised of two fepiscod every eieht years. The lanter coerponces accurats foe 12% of the betal cent of the syexcat. Avociated depecciation charges are allesaned in fall to distritution costs. Fixtares and fitinge and matinery ate to be depreciated 124 en the refucing balanse anal 4. dewa to a residual valoe of 100 of cosc. The depreciatica en fiveures and fitings is charged to other epeating expenses, while for machincry as welt as equipmast, dipreciation charged are allacated equally bete cen coet of sales and adminatratine copenves. During the ytar, matagement coemencad peoceses 15 well all of its evisting mathinery to facilitate a major eperade project. The sale was decesed bighly probuble effective July 1, 2021 when a buger was ideatified. The items have a cembined fair value of $99 millices with depoul in eher operatiat expetsect. mamestaring cquipmeat with a remaining aseful life of three years. The agreetnerit ectumenced ot April 1, 2021, asd teqaires that a total of five annual payments of 99.4 millien ate made - in inwrasce expenses. Maintenance and inserance expesses are endinanly clasiftad as ether opcrating evpenves. The lease agrosmont alwe speaks to a guaramed residual value of $1.6 millisn, and permits the evterivish of the leave by an aditional twe yean. Management ia confident tha the cempuny should teceive the intended benefits frum the leased asset wahin the rate is 6%. while the inserest rate inplicit is the lowe is 200 bais poirits highor. The 59.4 million payment debited to miseclanovus expentes is the only stcond of the kne iransaction that has fect made to date. Alro debided to miseellanoous expenses is 50.9 millate boe lozal fees incereed to draft the lose agremere (n Aprit 1, 2021, while a lease ieccntive of $540000 which was noceived by choque has yet to be recended Depreciaticn en the right of ase asser is wo be shard equally betw een cest ef wales, administrative evpenaes, and erher eperating cupesses. The cutity peefers to ahow the kased asset sroecately within its prepsity. plant and equipenen for presentation purposes. Intangible ancts The patent is to be anoctived ever is yean to a rell recifual value, charged to other eperating expenses, while the tralemark and oopyright ace beth amortined ever a 13-ycat periad, with charges soine to soet of sales On Fedrary 25, 2022, the ertity asquird a brand fer 581 million hut the trancaction has not yet been recoeded se otherwise accuented for in the bode. The brand shoeld be fully ancetived ever development. Throe-cighth of the anount pocvernied as developencrat ecnt was incurred between Other liabaities recerded in ether eperating ayensice. Selem: Debe iastramest 3n preniem. and Equity and revert wre paid on Aagint t, 2002. Trade reseitables earnings balance insofar as is possible. Addiriveally, the tevaluation reserve may be used cely to the exient that ocher reserves have been exhasested. Dividensts on the preference shares are cumenthy angoid and remain unaccounted for at the year end. An interim ordinary dividend anouaring te 54.9 withise was paid eo fanuary 1, 2022, but tavis is yet to be recerded. A further final eetinary drvidend was declared ua March 31, 2022 for 50 a3 per share beld as at that date; this loe is yet lo be asecunted for. Toe declared sividends were paid an August 1, 20122. A sam of 53.4millon is la be tramifered troen aceumulasod profits to the gencral reserves. Trade receivables Of the trade recivables figure curretely roperted, 52.1 milian relates lo a receivables balance that was already paid by the customer during the prive period, tat the payment was newer accounted for as the meeies were wolen by an accoceting clerk who has goee inte Aling since. The tax effect sea amy adjuctment to be made is te be aparet. The provision foe bad debe is to be revised to 125, of the adjusted trade receivables balance. Adjustments relatiog to roccivables are ontinarily recoeded in administrative expenses. Discontiaued operations Included in administrative expenses is the net rewelt of a discuatinuod eperation. An cntire division with assets cossing \$\$42 millaan asd accumvlated depecciative of \$378 miltion was sold for 5101 millien. In addition to the sale, the extry alwo iacurned redundlancy costs of $29 million. The nerw discontinued operation made profits of 5126 mition befoce accounting for the cost of redundancies and the sale of its assets as cerlined abeve. The appeupriate taxes on the profits for this segment were already acecunted for: Inventery A final inventory count on March 31, 2022 revealed that 56.5 million worth of itvernlory at cost had ned yet becn reconded. Of that amoum. 74. was foend wo be obsolete and should be written off. Inventory purchases are endinarily recoeded in cost of sales, but any write-offs ane charged to ocher operating expettees: Other income camed for the year, while royaltics camed but not yot roceived amount to 52.2 million. Taxation Taxable peofits reported foe the curreri year of awscssment amounted to 5477 millien. The overprovision ce the trial balance above relates to prior year taxes which have since beca paid. The entity has accumulated tasable termporary defference of $126 million, whoch does not include the effect of the revaluations on property, plant and oepintont. The deferred tax aseet cuncenty eeflected in the trial balance arose welely freen transactions charged to the statement of protit of lows. The current corporation tax rate is 3004. Taxation Taxable profits reported for the current year of assessment amounted to $477 million. The overprovision on the trial balance above relates to prior year taxes which have since been paid. The entity has accumulated taxable temporary difference of $126 million, which does not include the effect of the revaluations on property. plant and equipment. The deferred tax asset currently reflected in the trial balance arose solely from transactions charged to the statement of profit or loss. The current corporation tax rate is 30%. REQUIRED: a) Prepare the statement of profit or loss and other comprehensive income for the year ended March 31, 2022 ( 91/2 marks) b) Prepare the statement of changes in equity for the year ended March 31, 2022 (14 marks) c) Prepare the statement of financial position as at March 31, 2022 d) Calculate the basic eamings per share for the year ended March 31, 2022 NB. The EPS calculations should take into account the impact of any additional shares issued during the year. e) Prepare all relevant workings and explanations, including, but not limited to: - comprehensive listing of AL.L journal entries - a fixed assets schedule - an intangible assets schedule - an expense schedule - all other appropriate supporting calculations (50 marks) NB. As there are well over 100 individual journal entries to be recorded, these are heavily weighted and so must be thoroughly and accurately done if maximum marks are to be achieved. Please note that you MUST cross-reference all composite figures presented in the financial statements to their associated workings though the use of note numbers. Additionally, workings must be presented in the same order as the note numbers to which they are assigned. Failure to comply with these instructions will result in marks being deducted. The following details are decmed relevant to the propuratied of the diraft fiesancial statements which are is be presered ae the cerity's aradern: Which are to be presented to the exaity's auditors: Property, plant and equipmeat Sabsequent to a revaluatioe exercise which took place on March 31, 2022, the land had a fair value of 5244 million, while the building had a fair value of 58.37 millice. The building is depreciated evenly over forty years to a nill residual value, with the charges allecated in a 3:1 ratio between administrative expenves and coss of sales. There have becn no adfustments made for the revaluations in the curred period, asd their effects have not been included in the accumulaled semporary differences noted below. The capital allewances granled on the bexilding to date ase equivalent to the accumulaied depreciation charged agaizst it. Four months into the financial year, the entity bought a motor vehicle for 511.7 millien, bur inadvertenily recorded the debit to misectlancous expenses. Motor velaicles are depreciated on a straight line basis over eight years to a nil residual value. All depecciation charges on motor vehicles are to be allocated to distribution conts. Additionally, managenscat bought a conveyor system costing 513,9 million halfuay thaugh the financial year, which it is yet to record in the books. The system is compeised of two components: one of which has a useful life of 25 years, whille the other coenpoecent has to be replaced every eight years. The latter coenponexh acceants for 12\% of the toeal cost of the system. Associated depreciation charges are allocated in full to distribution conts. Fixtures and fittings and machinery are to be depecciated I2\% on the reducing balance and 95 . an cost respectively, while equipment is to be depreciated over cight years on a straight line busis down to a residual valoe of 10se of cost. The deprectation on fixtures and fittings is charged to other eperating expenses, while for machinery as well as equipenent, depecciation charges are allocated equally betwoen cost of sales and administrative expenses. During the year, managcment commenced processes fo sell all of its cxisting machinery to factlitate a major upgrade project. The sale was decmed highly prohable effective July 1. 2021 when a buycr was identified. The items have a combinod fair value of 599 million, with disposal corsts amodinting to 56.2 mallion. Aay impaisment or gain on the trankaction whould be recognived in other operating expensex. Included in miscellancous expenses is a icase payment which relates lo the rental of manufacturing equipmeat with a femaining useful life of theee years. The agrecment coenmenced on April 1, 2021, and requires that a fotal of five annual poyments of $9.4 millioe are made - an cighth of which relates to maintenance expenses, and another 5% of which is atributable to insurance expezses. Maintenance and insurance cypenses are ordinarily classificd as cether operating expenses. The lease agreement also speaks to a guaranteed revidual value of $6 million, and permits the cutension of the lease by an additional two ycan. Managcment is ccufident that the conmpany should receive the intended benefits firom the leased aset within the agreed period, which would negate the need to exiend the contract. The incresnental borrewing rate is 6 *. while the interest rate implicit in the lease is 200 basis peints higher. The 59,4 million payment debited to mivecllancous expetses is the caly second of the lease transaction that has becn made to date. Alwo dehited to miscellancous expenses is 50.9 mallion for legal fees incurred to draft the lease agreement on April 1, 2021, whalle a lease incentive of $550,000 which was received by cheque has yet te be recorded. Depreciation on the right of use asset is 10 be shared equally hetwect cos af uales, administrative expenses, and other openatiag expenses. The entity prefers to show the leased asset separately within its property, plant and cquipenent for prevemiatich purposes. Goodwill is to be impairod by I8\%, with the ingairment ctarped to other operating cypenses. The paters is to be armortesed over 18 yeats to a nil residual valuc, charged so ether operating expenses, while the tradematk and coprright are boeh artortived over a 13-year period, widh charges going to cost of salex. On February 28, 2022, the entity acquired a brand for $81 million, but the transaction has sod yer been recoeded or otherwise accounted for in the books. The brand should be fully amortived ever a 22-ycar period, with charges going to cost of ales and time-apportioned as necessary. Of the iotal R\&D cost on record, thife relates to rescarch cost, while the balance relates to development. Three-cighths of the amonant recopaised as develupenent cost was incarred between 5 Scplenher 1, 2021 to November 30, 2021. The product achicved commercial feasibility an December 1. 2021. Any capialised elechopmeat coel is to be amoqtived ever twelve years and charged to cest of sales, with time apportientent where nesessary. Any nath-capitalised sesearat and devefopenent cost shosld be charged to othet operating experives. Orher liahilities The contingent liabilisy reflected in the tral balance relates to a cuscener lauseri for which the chance of payout has been decmed as persible by the entity's atwencys. The ameunt was recoeded in other operatizg experaes. The cratity"s attorneys bave also advised that another laxsyit with which the company is currenthy faced has a probabie chance of paycest of 53.6 million. This amovant has not been accounted foct. Similar transactions are wsually recorded in other operating expenses. Neither of these transactions will have an effect on the accumulated tenipoeary diffetchces noted helow; Debt iestruments On April 1. 2021, the company issued a 6. convertible debeature, a oneloan note, and a 4, debenture with effective interest rates of 36,3% and 6.5% respectively. The convertible debenture has a nominal value of $2k5 million and is redecmable at the cnd of the fourth year, while the loan note has a nominal value of 5360 million, was issocd at a 6.8% tisceunt with issac coust of 53.243 million, and is redecmable atict five years at a 75 pecmium. The regular debenture has a noeminal value of 5122 miltion and ss redcemable after 3 years al an $ - prexnium. Ohly the coupon pryment relating to the coevertible dets instrument, which was incuerecthy debited to miscellancoeas expenses, has been secorded wo far, all other relevaet journal entries acress the three debt isvues remain unrecorded. Additionally, there are interest sams for the existing debt obligations reflected in the trial balance that remain unaccosoted for at the year cnd. Eqaity and reserves The par \&alue of each ordinary share is 50.80. On the first day of the fizancial year, the entity decided to make a boceas tssue of thee new shares for every tee existing shares held. Subsequently, there was a two for eleven rights issae on Oetoher 31,2021 a 51.35 per share. The market price per share at that dase was 52.20. The bens and rights issues have ace yet beea receeded. In the case of the bonus issue, managenent s preference is to peeserve the retained eansings balance insofar as is possible. Additieedlly, the revaluative reserve may be used enly to the extent that ether reserves have been exhaused. Dividends on the peeference shares are currently unpaid and remain unaccounted for at the year end. An imterien ordinary dividend amounting to $4.9 miltion was paid on heanry 1,2022 , but this is yet to be reconsed. A further final sedisary dividend was deelared en March 31,2022 for 50.05 per share held as at that date; this too is yet to be ascounted for. The decleded dividends were paid on August 1, 2022 A sum of 53.4 million is to be transferred from accumulated peofits to the general reserves. Trade receivables Of the trade receivables figure currently reported, $2.1 million relates to a receivables tulance that was already paid by the cuastomer during the prior period, but the payment was never accounted for as the monies were stolea by an accounting clerk who has gone into hiding since. The tax effect on asy adjustiment to be made is to be ignored. The provision for bad debt is to be revised wo 12% of the adjused trade receivables balance. Adjastments relating to receivables are ondinarily recorded in administrative expenses. Discentinucd operations Included in administrative expenses is the net result of a fiscoekinued operation. An entire division with assets costing $542 million and accurmalated depreciation of $378 million was sold for $101 miltion. In additien to the sale, the entity also incurred redandancy costs of $29 million. The now discoetinued operation make profits of $126 million before accountiog for the cost of redundancies and the sale of its assets as cutlined above. The approgriate taxes on the profits for this segment were already accounted for. Inventary A final invertory count on March 31,2022 revealed that 56.8 million worth of inventory at cost had not yet been reconded Of that amoent, 7% was found to be obsolete and sould be written off. Inventory purchases are ordinanily recorded in cost of sales, but any write-offs are charged to othar operating expenues. Other inceme For intereg income, the amount showa in the trial balance repesenes only a half of the amoan earsed for the year, while foyalties earned but not yet received amount so $2.2 millice. Taxation Taxable profits reperted for the curent year of assessment amoumted to $477 miltion. The overprovision on the trial balance above relates to prior year taxes which bave since then paid. The entity has accumulated tacable temporary difference of $126 million, which does not include the effect of the revaluations on property. plant and equipenent. The defered tax asset currently seflected in the trial balance arose solely froen trascactions charged to the stanement of profit or lass. The current corporation tax rate is 30% Taxation Taxable profits reported for the current year of assessment amounted to $477 million. The overprovision on the trial balance above relates to priot year taxes which have since been paid. The entity has accumulated taxable temporary difference of $126 million, which does not include the effect of the revaluations on property, plant and equipment. The deferred tax asset currently reflected in the trial balance arose solely from transactions charged to the statement of profit or loss. The current corporation tax rate is 30%. REQUIRED: a) Prepare the statement of profit or loss and other comprehensive income for the year ended March 31, 2022 ( 91/2 marks) b) Prepare the statement of changes in equity for the year ended March 31, 2022 (14 marks) c) Prepare the statement of financial position as at March 31, 2022 (23 1/2 marks) d) Calculate the basic earnings per share for the year ended March 31, 2022 (3 marks) NB. The EPS calculations should take into account the impact of any additional shares issued during the year. e) Prepare all relevant workings and explanations, including, but not limited to: - comprehensive listing of AL.L journal entries - a fixed assets schedule - an intangible assets schedule - an expense schedule - all other appropriate supporting calculations (50 marks) NB. As there are well over 100 individual journal entries to be recorded, these are heavily weighted and so must be thoroughly and accurately done if maximum marks are to be achieved. Please note that you MUST cross-reference all composite figures presented in the financial statements to their associated workings though the use of note numbers. Additionally, workings must be presented in the same order as the note numbers to which they are assigned. Failure to comply with these instructions will result in marks being deducted. Below is the trial balance for Mediplex 1.td, a pharmaccuticals maswfactaring compang: Mediples Lad The following details are decmed relevant bo the pecparation of the draft financial statements aluich ate to be presented to the centity's atditore: Preperty, plase and equipotsat value of $244 million, while the tuilding tad a fair value of $k37 miltion. The bailding is depectiated everuly over foety yean 10 a nill revitudl valuc, with the charges allocated in a 3:1 ratis between almitistrative evpetmes and ont of alec. Thete have been no adjeitments made for the revalurions in the curemt period, and their effects tave not been included in the accumelated terepecary differecess noted below. The capital allowances graited on the builing to date are oquivalkat to the accumulated dogreciaticn chargod againat it inadecrently roceeded the deter to misecllanocus sopreses. Motor vehicles are depreciated on a velicker are bo be allecated to ditribution cuse. Addsonally, eanspanent boapht a convey of syster cosing 513.9 milison halfuay through the fizancial year, which is is yet to pecued in the tooks. The rystem is coerprised of two fepiscod every eieht years. The lanter coerponces accurats foe 12% of the betal cent of the syexcat. Avociated depecciation charges are allesaned in fall to distritution costs. Fixtares and fitinge and matinery ate to be depreciated 124 en the refucing balanse anal 4. dewa to a residual valoe of 100 of cosc. The depreciatica en fiveures and fitings is charged to other epeating expenses, while for machincry as welt as equipmast, dipreciation charged are allacated equally bete cen coet of sales and adminatratine copenves. During the ytar, matagement coemencad peoceses 15 well all of its evisting mathinery to facilitate a major eperade project. The sale was decesed bighly probuble effective July 1, 2021 when a buger was ideatified. The items have a cembined fair value of $99 millices with depoul in eher operatiat expetsect. mamestaring cquipmeat with a remaining aseful life of three years. The agreetnerit ectumenced ot April 1, 2021, asd teqaires that a total of five annual payments of 99.4 millien ate made - in inwrasce expenses. Maintenance and inserance expesses are endinanly clasiftad as ether opcrating evpenves. The lease agrosmont alwe speaks to a guaramed residual value of $1.6 millisn, and permits the evterivish of the leave by an aditional twe yean. Management ia confident tha the cempuny should teceive the intended benefits frum the leased asset wahin the rate is 6%. while the inserest rate inplicit is the lowe is 200 bais poirits highor. The 59.4 million payment debited to miseclanovus expentes is the only stcond of the kne iransaction that has fect made to date. Alro debided to miseellanoous expenses is 50.9 millate boe lozal fees incereed to draft the lose agremere (n Aprit 1, 2021, while a lease ieccntive of $540000 which was noceived by choque has yet to be recended Depreciaticn en the right of ase asser is wo be shard equally betw een cest ef wales, administrative evpenaes, and erher eperating cupesses. The cutity peefers to ahow the kased asset sroecately within its prepsity. plant and equipenen for presentation purposes. Intangible ancts The patent is to be anoctived ever is yean to a rell recifual value, charged to other eperating expenses, while the tralemark and oopyright ace beth amortined ever a 13-ycat periad, with charges soine to soet of sales On Fedrary 25, 2022, the ertity asquird a brand fer 581 million hut the trancaction has not yet been recoeded se otherwise accuented for in the bode. The brand shoeld be fully ancetived ever development. Throe-cighth of the anount pocvernied as developencrat ecnt was incurred between Other liabaities recerded in ether eperating ayensice. Selem: Debe iastramest 3n preniem. and Equity and revert wre paid on Aagint t, 2002. Trade reseitables earnings balance insofar as is possible. Addiriveally, the tevaluation reserve may be used cely to the exient that ocher reserves have been exhasested. Dividensts on the preference shares are cumenthy angoid and remain unaccounted for at the year end. An interim ordinary dividend anouaring te 54.9 withise was paid eo fanuary 1, 2022, but tavis is yet to be recerded. A further final eetinary drvidend was declared ua March 31, 2022 for 50 a3 per share beld as at that date; this loe is yet lo be asecunted for. Toe declared sividends were paid an August 1, 20122. A sam of 53.4millon is la be tramifered troen aceumulasod profits to the gencral reserves. Trade receivables Of the trade recivables figure curretely roperted, 52.1 milian relates lo a receivables balance that was already paid by the customer during the prive period, tat the payment was newer accounted for as the meeies were wolen by an accoceting clerk who has goee inte Aling since. The tax effect sea amy adjuctment to be made is te be aparet. The provision foe bad debe is to be revised to 125, of the adjusted trade receivables balance. Adjustments relatiog to roccivables are ontinarily recoeded in administrative expenses. Discontiaued operations Included in administrative expenses is the net rewelt of a discuatinuod eperation. An cntire division with assets cossing \$\$42 millaan asd accumvlated depecciative of \$378 miltion was sold for 5101 millien. In addition to the sale, the extry alwo iacurned redundlancy costs of $29 million. The nerw discontinued operation made profits of 5126 mition befoce accounting for the cost of redundancies and the sale of its assets as cerlined abeve. The appeupriate taxes on the profits for this segment were already acecunted for: Inventery A final inventory count on March 31, 2022 revealed that 56.5 million worth of itvernlory at cost had ned yet becn reconded. Of that amoum. 74. was foend wo be obsolete and should be written off. Inventory purchases are endinarily recoeded in cost of sales, but any write-offs ane charged to ocher operating expettees: Other income camed for the year, while royaltics camed but not yot roceived amount to 52.2 million. Taxation Taxable peofits reported foe the curreri year of awscssment amounted to 5477 millien. The overprovision ce the trial balance above relates to prior year taxes which have since beca paid. The entity has accumulated tasable termporary defference of $126 million, whoch does not include the effect of the revaluations on property, plant and oepintont. The deferred tax aseet cuncenty eeflected in the trial balance arose welely freen transactions charged to the statement of protit of lows. The current corporation tax rate is 3004. Taxation Taxable profits reported for the current year of assessment amounted to $477 million. The overprovision on the trial balance above relates to prior year taxes which have since been paid. The entity has accumulated taxable temporary difference of $126 million, which does not include the effect of the revaluations on property. plant and equipment. The deferred tax asset currently reflected in the trial balance arose solely from transactions charged to the statement of profit or loss. The current corporation tax rate is 30%. REQUIRED: a) Prepare the statement of profit or loss and other comprehensive income for the year ended March 31, 2022 ( 91/2 marks) b) Prepare the statement of changes in equity for the year ended March 31, 2022 (14 marks) c) Prepare the statement of financial position as at March 31, 2022 d) Calculate the basic eamings per share for the year ended March 31, 2022 NB. The EPS calculations should take into account the impact of any additional shares issued during the year. e) Prepare all relevant workings and explanations, including, but not limited to: - comprehensive listing of AL.L journal entries - a fixed assets schedule - an intangible assets schedule - an expense schedule - all other appropriate supporting calculations (50 marks) NB. As there are well over 100 individual journal entries to be recorded, these are heavily weighted and so must be thoroughly and accurately done if maximum marks are to be achieved. Please note that you MUST cross-reference all composite figures presented in the financial statements to their associated workings though the use of note numbers. Additionally, workings must be presented in the same order as the note numbers to which they are assigned. Failure to comply with these instructions will result in marks being deducted