LIDIL LUI Question 2 (35 marks) You are provided with the following information about Kiddie Coop Plc, a leading producer of children's toys. The information is taken from the company's most recent financial statements for the year ended 31 December 2019. millions Extract from income statement for the year ended 31 December 2019 Revenue 13,736 Operating profit 1,390 Net interest payable (1,252) 137 Profit for the year attributable to ordinary shareholders Extract from statement of financial position at 31 December 2019 Non-current assets 11,036 Current assets 12,499 Shareholders' equity (6,831) Non-current liabilities (includes long term borrowings of 2,910 million) (8,152) (8,552) Current liabilities Additional information Enable Editing ontain viruses. Unless you need to edit, it's safer to stay in Protected View Shareholders' equity (6,831) Non-current liabilities (includes long term borrowings of 2,910 million) (8,152) Current liabilities (8,552) Additional information Number of ordinary shares in issue at 31 December 2019 1,631 million Market price of each ordinary share at 31 December 2019 1012 pence per share Requirement for question 2 IAS 1 (revised) Presentation of financial statements requires a company to produce on a regular basis detailed financial statements, including a statement of financial position. What is the purpose of the statement of financial position? With reference to Kiddie Coop Plc briefly explain any 4 reasons why the net assets figure in the statement of financial position differs to the company's market capitalisation calculated above. (8 marks) 9) The International Accounting Standards Board (ASB) framework provides guidance with regards to the preparation of financial statements. What are the four qualitative characteristics of accounting information outlined in the IASB framework? With reference to financial statements, briefly explain what each characteristic means. (10 marks)