Mawar Foods Bhd. has been listed on the Bursa Malaysia since year x8. The following balances relate to Mawar Foods Bhd. at 31 December x18: Debit RM'000 Credit RM'000 1,100,000 600,000 110,000 124,000 400 2,240 200,000 380,000 157,600 Revenue Cost of sales Administrative expenses Distribution costs Finance expenses Dividend income Non-current assets-at cost Land Building Plant and machinery Accumulated depreciation at 31 Dec. x17 Building Plant and machinery Financial assets Inventory Trade receivables Bank Trade payables Bank overdraft (unsecured) Tax paid Ordinary share capital 10% Redeemable preference shares Retained profits at 31 Dec. x17 Deferred tax liability 50,000 72,000 8,400 30,000 38,000 18,200 24,000 12,000 20,000 260,000 40,000 122,360 4,000 1,686,600 1,686,600 The following notes are relevant: a. Revenue includes sales of RM30 million of maturing inventory to Sunflower Enterprise on 1 July x18. The cost of goods at the date of sale was RM20 million and Mawar Foods Bhd. has an option to repurchase these goods at any time within three years of the sale at a price of RM30 million plus accrued interest from the date of sale of 10% per annum. At 31 December 18, the option has not been exercised, but it is highly likely that it will be before the date lapses. b. At 31 December x18, a provision is required for directors' bonuses equal to 1% of revenue for the year. c. The tax paid account related to the tax paid during the year for the current year and under provision of previous year of RM2 million. The current year's tax expense was estimated to be RM38 million inclusive of an increase to deferred tax liability of RM6 million. d. On January x18, the directors of Mawar Foods Bhd decided land and building should reflect their market values. At that date, an independent valuer valued the land at RM300 million and the buildings at RM500 million and these valuations were expected by directors. The remaining life of buildings at that date was 25 years. Plant and machinery is depreciated at 20% per annum using the reducing balance method and time apportioned as appropriate. Depreciation is charged to cost of sales and no depreciation has been charged for the year ended 31 December x18. Required: Prepare the following financial statements for Mawar Foods Bhd in accordance to the MFRS101 Presentation of Financial Statements. a) Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December x18. (12.5 marks) b) Statement of Financial Position as at 31 December x18. (12.5 marks) Mawar Foods Bhd. has been listed on the Bursa Malaysia since year x8. The following balances relate to Mawar Foods Bhd. at 31 December x18: Debit RM'000 Credit RM'000 1,100,000 600,000 110,000 124,000 400 2,240 200,000 380,000 157,600 Revenue Cost of sales Administrative expenses Distribution costs Finance expenses Dividend income Non-current assets-at cost Land Building Plant and machinery Accumulated depreciation at 31 Dec. x17 Building Plant and machinery Financial assets Inventory Trade receivables Bank Trade payables Bank overdraft (unsecured) Tax paid Ordinary share capital 10% Redeemable preference shares Retained profits at 31 Dec. x17 Deferred tax liability 50,000 72,000 8,400 30,000 38,000 18,200 24,000 12,000 20,000 260,000 40,000 122,360 4,000 1,686,600 1,686,600 The following notes are relevant: a. Revenue includes sales of RM30 million of maturing inventory to Sunflower Enterprise on 1 July x18. The cost of goods at the date of sale was RM20 million and Mawar Foods Bhd. has an option to repurchase these goods at any time within three years of the sale at a price of RM30 million plus accrued interest from the date of sale of 10% per annum. At 31 December 18, the option has not been exercised, but it is highly likely that it will be before the date lapses. b. At 31 December x18, a provision is required for directors' bonuses equal to 1% of revenue for the year. c. The tax paid account related to the tax paid during the year for the current year and under provision of previous year of RM2 million. The current year's tax expense was estimated to be RM38 million inclusive of an increase to deferred tax liability of RM6 million. d. On January x18, the directors of Mawar Foods Bhd decided land and building should reflect their market values. At that date, an independent valuer valued the land at RM300 million and the buildings at RM500 million and these valuations were expected by directors. The remaining life of buildings at that date was 25 years. Plant and machinery is depreciated at 20% per annum using the reducing balance method and time apportioned as appropriate. Depreciation is charged to cost of sales and no depreciation has been charged for the year ended 31 December x18. Required: Prepare the following financial statements for Mawar Foods Bhd in accordance to the MFRS101 Presentation of Financial Statements. a) Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December x18. (12.5 marks) b) Statement of Financial Position as at 31 December x18. (12.5 marks)
