Question 1 [15 marks] Financial statement presentation You are a senior financial accountant at Thunder Ltd. One of the new graduate accountants has prepared the following statement of financial position as at 30 June 2016, after its first year of operations: Thunder Ltd Statement of financial position as at 30 June 2016 $000 Assets Cash at bank 124 Receivables and inventory 190 Raw materials 6 Work in progress 14 Prepaid rent 18 Shares in listed companies (at cost) 57 Share issue costs 12 Property, plant, equipment and intangibles (at cost) 597 Research costs 28 Cash management account 50 Other assets 4 Total assets 1 100 Liabilities Accounts payable and provisions 83 Allowance for doubtful debts 2 Accumulated depreciation - property, plant and equipment 59 Borrowings 56 Debentures 200 Current and deferred tax liabilities 36 Unsecured notes 100 Share capital - ordinary shares 400 Retained earnings 120 Dividends payable 44 Total liabilities 1 100 Net assets 2 200 Additional information: Share issue costs relate to the ordinary shares issued by Thunder Ltd. Research costs relate to a new research and development project being undertaken, and the directors strongly believe that the project will be successful. Where AASB 101 requires entities to disclose further sub-classifications of the minimum line items either on the face of the statement or in the notes, the directors of Thunder Ltd have advised you that they wish to disclose these sub-classifications in the notes and only report the minimum line items on the face of the statement. Required: Review the statement of financial position prepared by the graduate accountant. Discuss what corrections / changes need to be made to the statement of financial position, to ensure that it complies with the requirements of AASB 101. Provide references to relevant paragraphs in the accounting standards where appropriate to support your answers. Note: You are not required to discuss any note disclosures that are needed, or prepare a revised statement of financial position. Question 1 Max. marks awarded Discuss corrections / changes needed 12 References 3 Total 15