Newcastle Ltd, has been manufacturing and selling swimming suits for men and women for the last two years. The company commenced its operations on 1 July 2018 by issuing 350 000, $5 shares fully paid. There was no other cost related to the share issue.

For the year ending 30 June 2020, the company recorded the following aggregate transactions:

Sales (90 % credit and 10 % cash sales) 6 395 000 , Cost of Sales 4 419 000 , Interest income 6 000 , Rent Revenue 8000, Gain on sale of plant 22000 , Employee benefit expenses Admin 100000 , Utilities expenses (1/3 selling & 2/3 admin) 36000 ,Depreciation expense- Admin 54000, Selling & Distribution Expenses 932000, Insurance expense - Admin 58000, Doubtful debts expense 7000, Interest expense 30000, Other borrowing expenses 12000 , Income tax expense 268000

The following additional information was noted during the preparation of financial statements for the year ended 30 June 2020:

5. Additional 80 000 @ $5 fully paid shares were issued On 1 July 2019.
6. A cash dividend of $180 000 was declared and paid during the 2020 financial year and a final dividend for 2020 of $75 000 was proposed but not recognised in the financial statements.
7. Inventory was measured at the lower of cost and net realizable value.
8. Buildings, plant and equipment were measured at cost. The benefits were expected to be received evenly over the useful life of the asset.
9. Land was revalued upward by $100 000 (related income tax for this transaction was $30 000). The revaluation gain will not be reclassified and has been recorded in the 'Land Revaluation Surplus'. The valuation was conducted by the registered valuer, Abbey Valuations Pty Ltd.
10. Financial assets held for trading are equity investments that are held for the purpose of selling and short-term profit taking.
11. $127 000 of other loans are repayable within six months. The remaining amount is payable in full at the end of 2022
12. $30 000 of bank loans are repayable within one year. The remaining amount is payable in full at the end of 2024.
13. The provision for employee benefits includes $47 000 payable within one year.
14. The warranty provision is in respect of a 12-month warranty given on certain goods

sold.

5. The bank loan is for 5 years and repayable in full at the end of the term. The interest rate is 9% and it is secured over the land.
6. Newcastle Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement.

Summarised account balances are provided below:

Year-end balances, 30 June 2020

Cash on Hand 22000,Bank 450000, Bank overdraft 86000, Trade receivable 969000, Allowance for doubtful debts 12000, other receivable 70000, inventories 900000, Prepaid insurance 2000, Financial assets held for trading 215000, Plant and equipment 1350000, Accumulated depreciation plant and equipment 495000, land 416000, building 132000, Accumulated depreciation buildings 40000, patents 46000, Accumulated amortisation of patent 5000, Furniture 33000, Accumulated depreciation furniture 10000, Goodwill 910000, trade payable 535000, provision for employee benefits 88000, provision for warranty 67000, Bank loans 110000,other loans 527000, share capital 2150000, Retained earnings, 30 June 2019 796000, dividend paid 180000, Land revaluation surplus 228000, Current tax liability 65000, Deferred tax asset 34000

Required: For the year ending 30 June 2020 (Note: comparative financial statements are not required),

1. Using the pro forma table supplied in appendix B, prepare a preliminary trial balance for Newcastle Ltd;
2. Prepare a statement of comprehensive income for Newcastle Ltd in accordance with the requirements of AASB 101. Newcastle Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement;
3. Prepare a statement of changes in equity for Newcastle Ltd in accordance with the requirements of AASB 101;
4. Prepare a statement of financial position for Newcastle Ltd in accordance with AASB

101. Use the current/non-current presentation format;

5. Prepare appropriate notes to the accounts. (You do not need to prepare notes related to income taxes. Include the following note as note 1. You may optionally add accounting policies to this note):

"1. Summary of significant accounting policies

Basis of accounting

The financial report is a general-purpose financial report which has been prepared on the historical cost basis, except where stated otherwise.

Statement of Compliance

The financial statements have been prepared in accordance with the requirements of the Corporations Act, Australian Accounting Standards which include Australian equivalents to International Financial Reporting Standards (AIFRSs) and AASB Interpretations. Compliance with AIFRSs ensures the financial statements and notes comply with International Financial Reporting Standards"

6. After preparing and analysing the Newcastle Ltd.'s financial statements, prepare a brief report (no more than 500 words) for the CEO explaining the company's financial performance and position.
7. Many investors as well as public are now concerned about organisation's social and environmental impacts. Therefore, more and more organisations are now providing various social and environmental information. Tahlia has asked you to identify what types of social and environmental information Newcastle ltd should provide to their stakeholders? Identify five important types of social and environment information/indicators (such as "Total amount of GHG emissions") related Newcastle Ltd and explain briefly the reason for selecting each of them (no more than 500 words