Peep plc is a quoted company manufacturing sunglasses. The following balances have been extracted from the ledgers at 31 March 2021:

£000

Administrative expenses 17,080

Cash & cash equivalents 8,190

Deferred taxation provision: 1 April 2020    1,400

Distribution costs 14,336

Employee costs 44,982

Finance expense    1,372

Finance income 784

Financial assets: value at 1st April 2020 1,470

Inventory: at 1 April 2020 23,002

Land & buildings: cost at 31 March 2021 30,660

Land & buildings: accumulated depreciation at 31 March 2021 15,204

Plant & machinery: cost at 31 March 2021 81,200

Plant & machinery: accumulated depreciation at 31 March 2021 49,560

Purchases & processing costs 73,500

Retained earnings 34,300

Revenue 189,070

Share capital (£1 ordinary shares) 7,980

Share premium 1,680

Trade payables 12,236

Trade receivables 16,422

The following notes are relevant:

1) Inventory Inventory at 31st March 2021 is £16,340,000.

2) Financial Assets Financial assets relate to investments in shares in quoted companies. Peep plc holds these shares for short term trading purposes. At 31 March 2021 the market valuation of the shares held was £1,200,000.

3) Land & Buildings There were no additions to, or disposals of, land and buildings in the year. Land with a cost of £8.2 million is included in the cost of land & buildings at 31 March 2021. Depreciation is charged at a rate of 5% on cost of buildings. Depreciation on buildings is to be allocated 80% to Cost of Sales and 20% to Administrative Expenses.

4) Plant & Machinery Plant and machinery is depreciated at 18% on the reducing balance basis. There have been no additions or disposals of plant and machinery in the year. Depreciation on Plant & Machinery is to be allocated 60% to Cost of Sales, 25% to Administrative Expenses and 15% to Distribution Costs.

5) Employee costs Employee costs as shown in the ledger are to be allocated 60% to Cost of Sales, 25% to Administrative Expenses and 15% to Distribution Costs. All directors’ remuneration is classed as Administrative Expenses. On 1st November 2020 500,000 shares were issued to directors under the directors’ bonus scheme. At that time the shares had a market value of 300p per share. No accounting entries have been made for this transaction.

6) Provision for product repairs In order to live up to its reputation as a world-leading sunglasses manufacturer, Peep plc grants the repair of any faulty pair of sunglasses to customers free of charge. The company’s experience is that the costs for repairing faulty sunglasses amounts to 1.5% of the revenue. No amounts have yet been provided for in the financial statements. Costs for repairs are allocated to Cost of Sales.

7) Corporation tax The company’s estimated provision for corporation tax for the year is £1,090,000.

8) Deferred tax The deferred taxation provision is to be increased by £120,000 for the year ended 31st March 2021.

Required: 

Prepare a Statement of Profit and Loss and Other Comprehensive Income and a Statement of Financial Position for the year to 31 March 2021 for Peep plc in accordance with International Accounting Standards.