Requirement: Prepare the following for Prisca Ltd in accordance with the minimum requirements of the New Zealand equivalents to International Financial Reporting Standards and the Companies Act 1993: 1 Statement of Profit and loss and Comprehensive Income for the year ended 31st March 2021 Statement of Changes in Equity for the year ended 31st March 2021 2 Statement of Financial Position as at 31st March 2021 (Comparative figures are required) 4 Notes to the above financial statements 5 Show workings for Adjustments for Expenses 6 Marks are awarded for presentation Total 3 11 Accounts Payable Accounts Receivable Information: Prisca Ltd Prisca Ltd is a New Zealand owned company reporting under full IFRS. The company manufactures and supplies high-quality Garden tools and gardening equipment. It sells its own products and also sells on commission for other companies. You are presented with the trial balance for Prisca Ltd as at 31st March 2021, together with opening balances at 1st April 2020. Accumulated Depreciation Buildings Accumulated Depreciation-fixtures & Equipment Accumulated Depreciation- Machinery Accunslated Depreciation- Motur Alowance for Doutful Des From 2 Trial Balance as at 31st March 2021 DEBIT CREDIT 1000's $000's 594 3,592 44 285 686 12 marks 21 marks 45 marks 7 marks 3 Marks 100 marks 2marks Trial Balance as at 1st April 2020 DEBIT CREDIT 4000's 1000's 1,787 185 644 17C Rain showers ving For Pris x + ginfile.php/1168665/mod_resource/content/1/ACTY6201%20Group%20Assignment%20Ser Bank Buildings (At Cost) Cost of Sales Commission Income Directors' Fees Expenses-Distribution Expenses- Administration Expenses-Financial Fixtures and Equipment (At Cost) GST Payable Income Tax Expense Income Tax Payable Intangible Assets Interim Dividend (Paid on 15th March 2021) inventory Investments Investment Income Land (at Valuation) Lease Expenses Loan II Machinery (at Cost) Mortgage Motor Vehicles (at Cost) Other Income Other Reserve Revaluation of Investments Prepayments Provisional Tax Paid Betained Earnings Sales Share Capital Wages and Salaries Total 924 2,772 18,110 158 587 2,880 130 436 1322 726 528 5.562 933 3,960 119 1870 383 176 231 46,369 308 212 352 79 554 634 497 ng 3.982 30,534 2,772 436 3,467 933 780 3,960 +6,397 120 1.500 383 554 09 359 660 1981 342 5.380 3 17C Rain showers HI Additional Information: Ignore GST applications in relation to this additional information. Prisca Ltd recorded amounts are rounded to the nearest dollar. 1. a. b. C. d. . Depreciation has not been accounted for. Depreciation rates are: Buildings-2% p.a. (straight line) on cost or valuation Fixture and equipment -20% p.a. (straight line) on cost Machinery-30% diminishing value Motor vehicles -30% diminishing value 2. On 1st April 2020 Prisca Ltd commenced the construction are usuar the company. The warehouse was completed and ready for occupationen its Marchant Prisca Ltd did not need to borrow funds directly for the construct of the factory because it had existing long-term financing available of $400,000t8 per annumand $154,000 at 10% per annum which were used for the construction project Payments for the materials, labour, and services relating to the construction of the factory were as follows: 1 April 2020 30 June 2010 31 December 2020 1 March 2021 4. Above amounts spent during the period was charged to administrative expense. The capitalized cost of the construction for the year ended 31st March 2021 has not been accounted for. 3. An invoice for some repair work done on the machinery prior to the year-end has been received but not processed. The invoice total was $5,000. 60,000 60,000 60,000 190,000 370,000 Expenses-Administration, Include: Audit fees paid to ABC Associate Accounting fees paid to AACT & Co Donations to approved charities Expenses-Financial, include Interest paid-mortgage Interest paid-loans 143,000 $50,000 $21,000 $50,000 $47,400 7C Rain showers 6. Wages and Salaries include $200,000 related to sales staff and $300,000 for the director's remuneration. 7. Lease expenses are for computers and motor vehicles. $30,000 of the computer lease expenses related to computers for the sales staff. 8. Depreciation expense for Fixtures and Equipment in the year in tinch 2020, is overstated by $50,000. TI 9. The buildings comprise a production area, an office space, and operate packaging area. There is also a small shop next to the office for direct sales and customer pickups. Traditionally the company charges 10% of both its building and fixtures and equipment depreciation to distribution expenses. 10. One of the motor vehicles is a delivery truck which is recorded at the cost of $50,000 with accumulated depreciation to the beginning of the current year of $10,000 There were no disposals or additions of fixtures and equipment during the year. New machinery was purchased on 1st January 2021. 11. 12. 13. A machine was sold for $200,000 cash on 31st March 2021. The machine had an original cost of $400,000 and a carrying amount of $150,000. No record has been made of the sale. 14. On 31st March 2021, the land was revalued by New Lynn Registered Valuers, a firm of independent registered valuers who considered the land to have increased in value to $4,350,000. This revaluation has yet to be recorded. 15. On 31st March 2021, Prisca Ltd adopted the revaluation model to account for the class of Buildings. The fair value of Buildings was determined to be $3,310,000 by New Ly Registered Valuers. This has not been recorded. 16. intangible assets are brand names and trademarks. Intangible assets originally cast 1960,000, Impairment testing of the intangible assets indicates 130,000 impairment for the current year which has not been included in expenses 17. Other come vicludes interest income of $25,000 17C Rain showers . 18. As at 1st April 2020 there were 5,280,000 shares on issue at $1 each. On 10th March 2021, another 600,000 shares were issued at $1.50 each. The money has been received from the trust company handling the share issue on 31st March 2021. This issue and the proceeds from the issue has not been recorded in the information supplied. 19. The mortgage is secured over land and buildings and carries a flat interest rate of 10% per annum. A lump sum capital repayment was made on 31st March and has been recorded. This amount is the annual repayment required under the mortgage agreement. 20. On 31st March 2021, it is estimated that the position of allowance for out aleat was $135,000 based on analysis of previous debt collection history. istite se the Allowance method to account for doubtful debts. 21. Inventory is carried at the lower of cost (Weighted Average Cost andetalizle value. 25% of inventories are raw materials, 20% are work in progress and the balance comprises finished goods held for sale. The net realizable value of Inventory was $5,500,000. 22. recorded. Outstanding director's fees for the March 2021 meeting of $20,000 have not been 23. Included in the prepayments, there is a property insurance bill of $120,000 paid on 1st January 2021 and covering the period from 1st January 2021 to 31st December 2021. This has not been adjusted on the Balance Date. 24. Investments are shares of Tauranga Ltd purchased in February 2020. The fair value was $938,000 at the year-end. This revaluation has not been accounted for. Investments are classified as available for sale financial assets by the company. 26. 25. A contract has been entered into to extend the building. This work will be carried out during the next financial year and will cost $1,700,000, Commission Income, earned but not yet recognized, was $150,000 for this year. 27. Apart from the change in the measurement of buildings, there are no changes in the accounting policies from those applied last year. On 10th April 2021, the directors have authorized a final dividend of 20 cents per 28, 29 On 23rd May 2001, a production plant was destroyed by a fire resulting in damages of 1800,000. Insurance will cover $600,000 of the damages, but payment of the insurance 17C Rain showers 28. On 10th April 2021, the directors have authorized a final dividend of 20 cents per share. 29. On 23rd May 2021, a production plant was destroyed by a fire resulting in damages of $800,000. Insurance will cover $600,000 of the damages, but payment of the insurance Page 6 11 claim has been delayed by a police investigation. (Assume the date when finande statements are authorized for the issue is 31st May 2021) 30. A major debtor Northwing Ltd owing $150,000 to Prisca Ltd went into liquidation This information became available to Prisca Ltd on 7th May 2021. No adjustment to the allowance for doubtful debts has been made to reflect this fact. Correspondence has been received from the liquidator indicating that Prisca Ltd cannot collect anything from the liquidation. 31. Prisca Ltd has been involved in a dispute with a government environment agency relating to the release of noxious wastewater from its manufacturing plant in early February 2021. An expert investigation was conducted to determine if the company was at fault. The draft financial report already discloses contingent liability in the notes detailing the investigation and estimating the potential damages at $800,000. The investigator's report, released on 1st April 2021, found Prisca Ltd to be responsible for the release and damages amounting to $650,000 were payable by the company. 32. A purchase invoice amounted to $3,000 dated on 28 March 2021 was omitted from the books of accounts. The customer has delivered goods to the company on the same date. G 17C Rain showers