MER of 11 | Case study 4: Fittorage Pageview A read sound RCC Company SAOG ("the Company") is a joint stock company registered, with the Ministry of Commerce and Industry on 1 March 2001, in accordance with the provisions of the Commercial Companies Law 1974, as amended, of the Sultanate of Oman. The Company's principal activity is the manufacturing of construction material. The Company's principal place of business is located at Ibri, Sultanate of Oman. Given below are the details of the balances as at the end of the year 2019: Share capital: The authorized share capital of the Company consists of 250,000,000 shares of Rial 0.100 each. The issued and paid-up share capital of the Company consists of 246,844,730 shares. Trade and other payables include the following: Trade payables RO 2,241,975. Other accrued expenses RO 1.174,546, Accrued employee benefits RO 238,805, Advances from customers RO 51.260. Creditors for capital expenditure RO 33,338, Retentions payable RO 31.783, Social security taxes payables RO 10,163. Directors' remuneration payables RO 100,000. Cost of turnover for the year includes: Cost of raw materials and consumables RO 6,982.970, Fuel and electricity RO 1,852.712, Direct wages RO 1.930.298, Repairs and maintenance RO 1.163.662 Other factory overheads RO 89.717 Provision for obsolete and slow-moving inventories RO 50.000 Other income has the following: Foreign exchange gains RO 33.312. Sale of scrap RO 43.150. Profit on sale of property, plant and equipment RO 11.615 Salaries and other related staff costs includes: Salaries RO 808.912. Other related staff costs RO . O file/C/Users/DELLS20112/Desktop/CAM 2018.upload.pdf of 11 to page Page View All teadow . on sale of property, plant and equipment RO 11,615 Salaries and other related staff costs includes: Salaries RO 808,912, Other related staff costs RO 1,364,604 General and administrative expenses have the following expenditures: Vehicle maintenance RO 64,300, Travelling and conveyance RO 16,132, Insurance RO 49,975, Office rent RO 28,980, Registration and renewals RO 31,928, Communication expenses RO 27,800, Repairs and maintenance RO 31,238, Directors' remuneration and sitting fees RO 107,400, Miscellaneous expenses RO 56,539 Selling and distribution expense are Outward freight charges RO 2,417,057, Advertising expenses RO 576,327, Travelling expenses RO 175,833 Tax related expenses: The total Income tax expense for the year amounted to 1,285,184, current tax liability is 1,214,997 and deferred tax liability RO 377,595 The turnover for the year amounted to RO 30,828,916 The finance cost for the year totaled to RO 34,711 For the year there was unrealized fair value loss on available for sale investments of RO 656,062 Property plant and equipment includes the following assets as given below with their respective amounts of cost and accumulated depreciation as at the year-end: Cost RO Accumulated Depreciation RO Plant and Machinery 25.349.257 9.766,881 Type here to search . . . CA2 V1 upload pdf X -> 0 C 9 of 11 A O file:///C/Users/DELLX20112/Desktop/CA2%20V1.20upload pdf + to page A Read woud Adidas vv vvv v vvvv aw of cost and accumulated depreciation as at the year-end: Cost RO Accumulated Depreciation RO 9,766,881 25,349,257 7,097,183 2,404,891 Plant and Machinery Buildings Freehold land Tools and Instruments 185,412 241,426 221,112 Furniture and fixtures 637,459 503.889 Office equipment 353,949 303,716 Motor vehicles 663,647 318,098 Other equipment 639.110 374.851 Type here to search Vi upload.pl file//C:/Users/DELLS20112/Desktop/CA220V1N2Dupload pdt o At Rondo Led The depreciation was charged for the year as follows: RO Depreciation on plant and machinery, Plant and Machinery 1,420,795 building, Tools and instruments, Fumiture Buildings 325,541 and fixtures is to be included in cost of Freehold land Nil turnover and the remaining depreciation Tools and Instruments 10,109 will be allocated to office and Furniture and fixtures 56,698 administration expenses. Office equipment 73,167 Motor vehicles 89,554 Other equipment 28,778 Inventories includes Raw materials RO 1,775,280, Engineering stores and spares RO 859,783, Work- in-progress RO 46,375, Finished goods RO 1,638,044, Packing materials RO 149,211, Goods-in-transit RO 336,253. Cash and Bank balance as of the year end was RO 1.922,806 Trade and other receivables for the year end accounted to trade receivables RO 7,983,673, Other receivables and advances RO 251,470, Accrued Income RO 72,825. Pre-payments RO 112,617, Advances towards capital purchases RO 16,704. The balances of the reserves and surplus are as follows: legal reserve RO 4,639,567, Retained earnings . Type here to search Et CA2 V1 upload.pdf X 10 to page A doul . . O fiel/C/Users/DELL 20112/Desktop/CAR 2017.upload.pdf of 11 lo Advances towards capital purchases RO 16,704. The balances of the reserves and surplus are as follows: legal reserve RO 4,639,567, Retained earnings balance before adjusting the net profit for the year RO 2,371,900 The company also had at the end of the year the balance of Available-for-sale investments - Long term RO 2,116,946, Non-current portion of held-to-maturity investments 4,459,679, current portion of held- to-maturity investments RO 5,000,000, Employee end of service benefits RO 644,207, Loan from Bank RO 435,000, Basic earnings per share is calculated by dividing the net profit for the year by the number of shares outstanding during the year. Net assets per share is calculated by dividing the Net assets or Total Equity at the end of the reporting period by the number of shares outstanding. You are required to prepare Statement of Comprehensive Income and Statement of Financial position for the year ended 2019 in accordance with IFRS and other governing laws and practices followed in Oman. Also do show the necessary working notes. (15 marks) Type here to search MER of 11 | Case study 4: Fittorage Pageview A read sound RCC Company SAOG ("the Company") is a joint stock company registered, with the Ministry of Commerce and Industry on 1 March 2001, in accordance with the provisions of the Commercial Companies Law 1974, as amended, of the Sultanate of Oman. The Company's principal activity is the manufacturing of construction material. The Company's principal place of business is located at Ibri, Sultanate of Oman. Given below are the details of the balances as at the end of the year 2019: Share capital: The authorized share capital of the Company consists of 250,000,000 shares of Rial 0.100 each. The issued and paid-up share capital of the Company consists of 246,844,730 shares. Trade and other payables include the following: Trade payables RO 2,241,975. Other accrued expenses RO 1.174,546, Accrued employee benefits RO 238,805, Advances from customers RO 51.260. Creditors for capital expenditure RO 33,338, Retentions payable RO 31.783, Social security taxes payables RO 10,163. Directors' remuneration payables RO 100,000. Cost of turnover for the year includes: Cost of raw materials and consumables RO 6,982.970, Fuel and electricity RO 1,852.712, Direct wages RO 1.930.298, Repairs and maintenance RO 1.163.662 Other factory overheads RO 89.717 Provision for obsolete and slow-moving inventories RO 50.000 Other income has the following: Foreign exchange gains RO 33.312. Sale of scrap RO 43.150. Profit on sale of property, plant and equipment RO 11.615 Salaries and other related staff costs includes: Salaries RO 808.912. Other related staff costs RO . O file/C/Users/DELLS20112/Desktop/CAM 2018.upload.pdf of 11 to page Page View All teadow . on sale of property, plant and equipment RO 11,615 Salaries and other related staff costs includes: Salaries RO 808,912, Other related staff costs RO 1,364,604 General and administrative expenses have the following expenditures: Vehicle maintenance RO 64,300, Travelling and conveyance RO 16,132, Insurance RO 49,975, Office rent RO 28,980, Registration and renewals RO 31,928, Communication expenses RO 27,800, Repairs and maintenance RO 31,238, Directors' remuneration and sitting fees RO 107,400, Miscellaneous expenses RO 56,539 Selling and distribution expense are Outward freight charges RO 2,417,057, Advertising expenses RO 576,327, Travelling expenses RO 175,833 Tax related expenses: The total Income tax expense for the year amounted to 1,285,184, current tax liability is 1,214,997 and deferred tax liability RO 377,595 The turnover for the year amounted to RO 30,828,916 The finance cost for the year totaled to RO 34,711 For the year there was unrealized fair value loss on available for sale investments of RO 656,062 Property plant and equipment includes the following assets as given below with their respective amounts of cost and accumulated depreciation as at the year-end: Cost RO Accumulated Depreciation RO Plant and Machinery 25.349.257 9.766,881 Type here to search . . . CA2 V1 upload pdf X -> 0 C 9 of 11 A O file:///C/Users/DELLX20112/Desktop/CA2%20V1.20upload pdf + to page A Read woud Adidas vv vvv v vvvv aw of cost and accumulated depreciation as at the year-end: Cost RO Accumulated Depreciation RO 9,766,881 25,349,257 7,097,183 2,404,891 Plant and Machinery Buildings Freehold land Tools and Instruments 185,412 241,426 221,112 Furniture and fixtures 637,459 503.889 Office equipment 353,949 303,716 Motor vehicles 663,647 318,098 Other equipment 639.110 374.851 Type here to search Vi upload.pl file//C:/Users/DELLS20112/Desktop/CA220V1N2Dupload pdt o At Rondo Led The depreciation was charged for the year as follows: RO Depreciation on plant and machinery, Plant and Machinery 1,420,795 building, Tools and instruments, Fumiture Buildings 325,541 and fixtures is to be included in cost of Freehold land Nil turnover and the remaining depreciation Tools and Instruments 10,109 will be allocated to office and Furniture and fixtures 56,698 administration expenses. Office equipment 73,167 Motor vehicles 89,554 Other equipment 28,778 Inventories includes Raw materials RO 1,775,280, Engineering stores and spares RO 859,783, Work- in-progress RO 46,375, Finished goods RO 1,638,044, Packing materials RO 149,211, Goods-in-transit RO 336,253. Cash and Bank balance as of the year end was RO 1.922,806 Trade and other receivables for the year end accounted to trade receivables RO 7,983,673, Other receivables and advances RO 251,470, Accrued Income RO 72,825. Pre-payments RO 112,617, Advances towards capital purchases RO 16,704. The balances of the reserves and surplus are as follows: legal reserve RO 4,639,567, Retained earnings . Type here to search Et CA2 V1 upload.pdf X 10 to page A doul . . O fiel/C/Users/DELL 20112/Desktop/CAR 2017.upload.pdf of 11 lo Advances towards capital purchases RO 16,704. The balances of the reserves and surplus are as follows: legal reserve RO 4,639,567, Retained earnings balance before adjusting the net profit for the year RO 2,371,900 The company also had at the end of the year the balance of Available-for-sale investments - Long term RO 2,116,946, Non-current portion of held-to-maturity investments 4,459,679, current portion of held- to-maturity investments RO 5,000,000, Employee end of service benefits RO 644,207, Loan from Bank RO 435,000, Basic earnings per share is calculated by dividing the net profit for the year by the number of shares outstanding during the year. Net assets per share is calculated by dividing the Net assets or Total Equity at the end of the reporting period by the number of shares outstanding. You are required to prepare Statement of Comprehensive Income and Statement of Financial position for the year ended 2019 in accordance with IFRS and other governing laws and practices followed in Oman. Also do show the necessary working notes. (15 marks) Type here to search
