Mediples 1.tal which are to be prescnted to the entity's ausition: Property, plast and equipment Subscqucnt to a rcualuation cxercise whach took plase cen March 31, 20t2, the land had a fair value of $244 million, while the building had a fair value of 5837 mition. The huiking is ratio between administrative expenses and ced of ales. There hune beet as aljotritmes made for the revaluations in the curremt period, and their effects bave nor besn insladed in the accumulated temporary differences noted belew. The cayitul allew ances gratied on the builifing to date are equivalent to the accutielated deprociation chargod agaite it. Four moerhs into the finuncial year, the cedity bouptit a mveve velicle fiee 511.7 million, but inadvertently recurded the debit to miscellanenus expenses. Motor valbicles ane depreciated on a straight line baus over cight years to a nil residual valoc. All deprociatioe chayge on motoe vehicles are to be allocaled to distributive coits. financial your, which it is yet to rocond in the books. The system is onmprised ef twe componcths: ons of which has a useful tife of 25 ycan, while the oder conpoecnt has to be Fixtures and fittings and machincry are te be depreciated 12% t en the nodacing tulance and 9 : dewn to a retidual value of 10 of cons. The depeciation oe fittints and fittieps is ckargod to echer operatisg expenses, while for machinery as well as bevitent, Afpectution charges are albecated equally betwect cost of sales asd administratise evpenses. During the year, matagcmont commented proscoses be sell all of its ccistity maskincry to facilitale a major uperade projest. The sale was decmed hypldy probulle effoctive July 1, a021 when a buyer was identified. The tems have a ceentened fair valae of 59 minee, with dispieal in echer operating expetses. on April 1, 2021, and requires that a letal of five antual paymentiv of 59.4 million are made - an confident that the conspany should receive the iniended becefits froen the lesoed avet within the The 59.4 milison pryment dobicd io muscellancows cypenses is the oely nocend of the lerase transaction that has bocn made bo date. Alwe debitod to miscellasoves ceporacs a 50.9 millian for logal foes incurred we draft the lease agreement on Ageil 1, 201, whele a lease incentive of 5550,000 which was feceived by cheque bes yet lo be fecended. Dopreciation on the right of use asset is te be shared equally between west of salm, administrative expenies, and ether egerating expenses. The eritity perfers so show the leased asset sepurately within its peoperty, plant and equipenerit fix jeectitive perposes. Intangible assets expenses, while the trademark and copyright are boch amertised ever a 13-ycar period, with charges going to cost of sales. On February 28, 2022, the entity acquired a brand for 581 million, but the transaction has not yet been recorded or otherwise accounted for in the books. The brand should be fully amortised over a 22-year period, with charges going to cost of sales and time-apportioned as necessary. Of the total RRED cost on record, 60% relates to research cost, while the balance relates to development. Three-cighths of the amount recognised as developencit cost was incurred tetween 5 Sepermber 1, 2021 to November 30, 2021. The product achieved commereial fearibility on December 1, 2021. Any capitalised developenent cost is to be amortised over tweive years and charged to cost of sales, with time apportionment where necessary. Aay son-capitalised research and develogment cost should be charged to other operating expenses. Other liabilities The contingens liability reflested in the trial balance relanes to a customer lawsust for which the chance of payout has been deemed as pessible by the entity's attorneys. The amount was recorded in other operating expenses. The entity's atterncys have alse advised that anether lawsuit with which the company is currenaly faced has a probable chance of payout of 53.6 mithion. This amount has not been accounted fot. Simtilar transactions afe usually reconded in other operating expensex. Neither of these traasactions will have an effect on the accumulared iemperary differences noted below. Debt instruments On April 1, 2021, the cempany issued a 6% convertible debsture, a 0% loan note, and a 4\%, debenture with effective interes rates of 8%.3% and 6.5% respectively. The conventible debenture has a bominal value of $285 miltion and is redeemable at the end of the fourth year, while the loas note has a nomical value of $360 miltion, was issued at a 6.8% discount with issue costs of 53.243 million, and is redeemable after five years at a 7% premiam. The regular debeature has a nominal value of 5122 million and is redeemable afer 3 years at an 8.i. premium. Only the coupon paryment relating to the convettible debt instrument, which was incoerectly debited to miscellancous expenses, has been recorded so far, all other relevant joumal entries across the three debs issaes remain unrecerded. Additionally, there are interest sums for the existing debt coligations reflected in the trial balance that remain unaccounted for at the year end. Equity and reserves The par value of each ondinary share is $0.80. On the first day of the financial year, the entity decided to make a bonus issue of three new shares fot every ten existing shares held. Subsequently, there was a two for cleven rights issue on October 31, 2021 at $1.35 per share. The market price per shate at that date was $2.20. The bonus and rights issues have not yet been recorded. In the case of the bonus issue, management's preference is to preserve the retained carnings halance insofat as as porcible. Addicionally, the revalaitive tcierve may be used eelly io the extent that ocher reserves have been exhausted. Dividends on the preficrence shares are currently unguid and romain anaccounted for at the year end. An interim werfinary dividend amounting to 549 millive was puid en Jatwary 1, 2022, buif this ix yet to be recerded A further fial oedmary dnadead was declated on March 31. 2ex2 for 50.03 per thare beld as at that dane: this 100 is yet wo be acevoned fier. The dectured sublends were paid on Anged 1, 2022. A sum of 53 , mitlion is to be transferred froes accun lated profits to the gemerall reserves. Trade receivables Of the trade reccivables figure currectly reported, \$2.1 millive relates to a teceivables balance. that was already paid by the customet daring the price period, bet the payment was never aecounted foe as the monies wore slolen by an acoeutting delerk who lass poete intes hiding sinct: The tat effect on any adjustment io be made it to be igpered The provision for bad debt is ta be revined to 124 in the adfestad trade recervables bulance. Adjustments relating to roccivables arc oedinarly recended in ad-2 -stative copensex. Disceatinusd optrations Iscluded in administrative expenses is the net resah ef a drscoesieneld operatice. An entire division with assets certing 5542 millice and accum vilited depeeciative of 5375 million was wold for $101 million. In addition to the sale, the cotity alke incurred redunfancy costs of 529 arilison. The now discuntituod operativn mule prafits of 5126 misen befire acceunting for the eov of this segment were alleady accounted for. Inventery had not yet been receeded. Or that amceet, Thi, was fiend bo be desclete asd stweld be writter off. Ieventocy purchases are ordinarily recended in ceet of cales, but aey write-etts ane charget to wher operating expenses. Other incene Tasation Taxahle profits regorted for the curreat year of msesiesent a everprovinioa on the trial balasce above relates to peiar year taves shich have since been paid. the effoct of the revalaations on pooperty, plant and oyjipmente. The deferred tax asset currently reflected in the tral bulance anoss wildy freen transactices charged to the statement of peofit oe lose. REQUIRFD: a) Prepare the satemedt of profit in loss and other con growensive inceme foc the your cndod March 31, 2022 (9)it marks) Inventery A final inventory count on March 31, 2022 revealed that 56.8 million worth of inventory at cost had not yet been recorded. Of that amount, 7\%, was found to be obsolete and should be written off. Inventory purchases are ordinarily recorded in cost of sales, but any write-offs are charged to other operating expenses. Other income For interest income, the amount shown in the trial balance represents only a half of the amount earned for the year, while royalties eamed but not yet received amount to 522 million. 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 taves which have since becn paid. The entity has accumulated taxable tenaporary difference of $126 million, which does not iaclude 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 satement of profit or loss. The current corporatien cax rate is 30 . REQUIRED: a) Prepare the statement of profit os loss and other comprehensive income for the year ended March 31, 2022 (9\%/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_ (231/ marks) d) Calculate the basic eamings 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 iccued during the year. e) Prepare all relevant workings and explanations, including, but not limited to: - comprehensive listing of ald joumal entries - a fixed assets schedule - an intangible assets schedule - an expense schedule - all other appropriate supporting calculations (50 marks) Mediples 1.tal which are to be prescnted to the entity's ausition: Property, plast and equipment Subscqucnt to a rcualuation cxercise whach took plase cen March 31, 20t2, the land had a fair value of $244 million, while the building had a fair value of 5837 mition. The huiking is ratio between administrative expenses and ced of ales. There hune beet as aljotritmes made for the revaluations in the curremt period, and their effects bave nor besn insladed in the accumulated temporary differences noted belew. The cayitul allew ances gratied on the builifing to date are equivalent to the accutielated deprociation chargod agaite it. Four moerhs into the finuncial year, the cedity bouptit a mveve velicle fiee 511.7 million, but inadvertently recurded the debit to miscellanenus expenses. Motor valbicles ane depreciated on a straight line baus over cight years to a nil residual valoc. All deprociatioe chayge on motoe vehicles are to be allocaled to distributive coits. financial your, which it is yet to rocond in the books. The system is onmprised ef twe componcths: ons of which has a useful tife of 25 ycan, while the oder conpoecnt has to be Fixtures and fittings and machincry are te be depreciated 12% t en the nodacing tulance and 9 : dewn to a retidual value of 10 of cons. The depeciation oe fittints and fittieps is ckargod to echer operatisg expenses, while for machinery as well as bevitent, Afpectution charges are albecated equally betwect cost of sales asd administratise evpenses. During the year, matagcmont commented proscoses be sell all of its ccistity maskincry to facilitale a major uperade projest. The sale was decmed hypldy probulle effoctive July 1, a021 when a buyer was identified. The tems have a ceentened fair valae of 59 minee, with dispieal in echer operating expetses. on April 1, 2021, and requires that a letal of five antual paymentiv of 59.4 million are made - an confident that the conspany should receive the iniended becefits froen the lesoed avet within the The 59.4 milison pryment dobicd io muscellancows cypenses is the oely nocend of the lerase transaction that has bocn made bo date. Alwe debitod to miscellasoves ceporacs a 50.9 millian for logal foes incurred we draft the lease agreement on Ageil 1, 201, whele a lease incentive of 5550,000 which was feceived by cheque bes yet lo be fecended. Dopreciation on the right of use asset is te be shared equally between west of salm, administrative expenies, and ether egerating expenses. The eritity perfers so show the leased asset sepurately within its peoperty, plant and equipenerit fix jeectitive perposes. Intangible assets expenses, while the trademark and copyright are boch amertised ever a 13-ycar period, with charges going to cost of sales. On February 28, 2022, the entity acquired a brand for 581 million, but the transaction has not yet been recorded or otherwise accounted for in the books. The brand should be fully amortised over a 22-year period, with charges going to cost of sales and time-apportioned as necessary. Of the total RRED cost on record, 60% relates to research cost, while the balance relates to development. Three-cighths of the amount recognised as developencit cost was incurred tetween 5 Sepermber 1, 2021 to November 30, 2021. The product achieved commereial fearibility on December 1, 2021. Any capitalised developenent cost is to be amortised over tweive years and charged to cost of sales, with time apportionment where necessary. Aay son-capitalised research and develogment cost should be charged to other operating expenses. Other liabilities The contingens liability reflested in the trial balance relanes to a customer lawsust for which the chance of payout has been deemed as pessible by the entity's attorneys. The amount was recorded in other operating expenses. The entity's atterncys have alse advised that anether lawsuit with which the company is currenaly faced has a probable chance of payout of 53.6 mithion. This amount has not been accounted fot. Simtilar transactions afe usually reconded in other operating expensex. Neither of these traasactions will have an effect on the accumulared iemperary differences noted below. Debt instruments On April 1, 2021, the cempany issued a 6% convertible debsture, a 0% loan note, and a 4\%, debenture with effective interes rates of 8%.3% and 6.5% respectively. The conventible debenture has a bominal value of $285 miltion and is redeemable at the end of the fourth year, while the loas note has a nomical value of $360 miltion, was issued at a 6.8% discount with issue costs of 53.243 million, and is redeemable after five years at a 7% premiam. The regular debeature has a nominal value of 5122 million and is redeemable afer 3 years at an 8.i. premium. Only the coupon paryment relating to the convettible debt instrument, which was incoerectly debited to miscellancous expenses, has been recorded so far, all other relevant joumal entries across the three debs issaes remain unrecerded. Additionally, there are interest sums for the existing debt coligations reflected in the trial balance that remain unaccounted for at the year end. Equity and reserves The par value of each ondinary share is $0.80. On the first day of the financial year, the entity decided to make a bonus issue of three new shares fot every ten existing shares held. Subsequently, there was a two for cleven rights issue on October 31, 2021 at $1.35 per share. The market price per shate at that date was $2.20. The bonus and rights issues have not yet been recorded. In the case of the bonus issue, management's preference is to preserve the retained carnings halance insofat as as porcible. Addicionally, the revalaitive tcierve may be used eelly io the extent that ocher reserves have been exhausted. Dividends on the preficrence shares are currently unguid and romain anaccounted for at the year end. An interim werfinary dividend amounting to 549 millive was puid en Jatwary 1, 2022, buif this ix yet to be recerded A further fial oedmary dnadead was declated on March 31. 2ex2 for 50.03 per thare beld as at that dane: this 100 is yet wo be acevoned fier. The dectured sublends were paid on Anged 1, 2022. A sum of 53 , mitlion is to be transferred froes accun lated profits to the gemerall reserves. Trade receivables Of the trade reccivables figure currectly reported, \$2.1 millive relates to a teceivables balance. that was already paid by the customet daring the price period, bet the payment was never aecounted foe as the monies wore slolen by an acoeutting delerk who lass poete intes hiding sinct: The tat effect on any adjustment io be made it to be igpered The provision for bad debt is ta be revined to 124 in the adfestad trade recervables bulance. Adjustments relating to roccivables arc oedinarly recended in ad-2 -stative copensex. Disceatinusd optrations Iscluded in administrative expenses is the net resah ef a drscoesieneld operatice. An entire division with assets certing 5542 millice and accum vilited depeeciative of 5375 million was wold for $101 million. In addition to the sale, the cotity alke incurred redunfancy costs of 529 arilison. The now discuntituod operativn mule prafits of 5126 misen befire acceunting for the eov of this segment were alleady accounted for. Inventery had not yet been receeded. Or that amceet, Thi, was fiend bo be desclete asd stweld be writter off. Ieventocy purchases are ordinarily recended in ceet of cales, but aey write-etts ane charget to wher operating expenses. Other incene Tasation Taxahle profits regorted for the curreat year of msesiesent a everprovinioa on the trial balasce above relates to peiar year taves shich have since been paid. the effoct of the revalaations on pooperty, plant and oyjipmente. The deferred tax asset currently reflected in the tral bulance anoss wildy freen transactices charged to the statement of peofit oe lose. REQUIRFD: a) Prepare the satemedt of profit in loss and other con growensive inceme foc the your cndod March 31, 2022 (9)it marks) Inventery A final inventory count on March 31, 2022 revealed that 56.8 million worth of inventory at cost had not yet been recorded. Of that amount, 7\%, was found to be obsolete and should be written off. Inventory purchases are ordinarily recorded in cost of sales, but any write-offs are charged to other operating expenses. Other income For interest income, the amount shown in the trial balance represents only a half of the amount earned for the year, while royalties eamed but not yet received amount to 522 million. 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 taves which have since becn paid. The entity has accumulated taxable tenaporary difference of $126 million, which does not iaclude 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 satement of profit or loss. The current corporatien cax rate is 30 . REQUIRED: a) Prepare the statement of profit os loss and other comprehensive income for the year ended March 31, 2022 (9\%/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_ (231/ marks) d) Calculate the basic eamings 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 iccued during the year. e) Prepare all relevant workings and explanations, including, but not limited to: - comprehensive listing of ald joumal entries - a fixed assets schedule - an intangible assets schedule - an expense schedule - all other appropriate supporting calculations (50 marks)