KFA Consults\'s policy is to accrue profits on construction contracts based on a stage of completion given by the work certified as a percentage of the contract price.Noncurrent assets:KFA Consults decided to revalue its land and building, for the first time, onOctoberA qualified valuer determined the relevant revalued amounts to be $million for the land and $million for the building. The building\'s remaining life at the date of the revaluation wasyears. This revaluation has not yet been reflected in the trial balance figures. KFA Consults does not make a transfer from the revaluation reserve to retained earnings in respect of the realisation of the revaluation surplus. Deferred tax is applicable to the revaluation surplus atThe leased plant was acquired onOctoberunder a fiveyear finance lease which has an implicit interest rate ofper annum. The rentals are $million per annum payable onSeptember each year.Owned plant and equipment is depreciated atper annum using the reducing balance method.No depreciation has yet been charged on any noncurrent asset for the year endedSeptember

All depreciation is charged to cost of sales.OnOctoberKFA Consults received a renewal quote of $from the company\'s property insurer. The directors were surprised at how much it had increased and believed it would be less expensive for the company to \'selfinsure\'. Accordingly, they charged $to administrative expenses and credited the same amount to the insurance provision. During the year, the company incurred $of expenses relating to previously insured property damage which it has debited to the provision.A provision for income tax for the year endedSeptemberof $million is required. The balance on current tax represents the underover provision of the tax liability for the year endedSeptemberAtSeptemberthe tax base of KFA Consults\'s net assets was $million less than their carrying amounts. This does not include the effect of the revaluation in noteTheabove. The income tax rate of KFA Consults isThe $million loan note was issued at par onOctoberNo interest will be paid on the loan; however, it will be redeemed onSeptemberfor $which gives an effective finance cost offor a year

Required:

a Prepare the statement of profit or loss and other comprehensive income forKFA Consults for the year ended September

b Prepare the statement of financial position for KFA Consults as at SeptemberNote: A statement of changes in equity and notes to the financial statements are not required.The following mark allocation is provided as guidance for this question: