QUESTION 1:

Provide some examples of items that would be adjusted directly against equity, rather than being included as part of profit or loss.

QUESTION 4:

What is non-IFRS financial information? Discuss how ASIC's RG230 could be applied to minimise the provision of non-IFRS financial information that could be misleading to investors.

QUESTION 5

During 2020, Point Addis Ltd commenced the construction of a windfarm for its own use. During the reporting period ending 30 June 2023, a change in accounting standards means that the directors are required to change the company's treatment of borrowing costs incurred in the construction of assets for its own use. In previous periods Point Addis Ltd expensed such costs, but must now capitalise them as part of the construction cost in line with the requirement of AASB 123. The unadjusted statement of profit or loss and other comprehensive income and statement of changes in equity for the reporting period ended 30 June 2023 are detailed below.

Point Addis Ltd 2023 2022 2021 Statement of financial position (5) (extract) ot 30 June 2023 Qualifying asset under construction 10 700 6 650 4 400 Other assets 23 610 21 140 16 150 34 310 27 790 20 550 Share capital 12 500 12 500 12 500 Retained earnings 21 810 15 290 8 050 34 310 27 790 20 550Point Addis Lid Abridged statement of profit or loss and other comprehensive income for the 2023 2022 Year ended 30 June 2023 (5) (5) Profit before tax 14 600 14 200 Income tax expense (4 380) (4 260] Profit for the year 10 220 9 940 Other comprehensive income Total comprehensive income 10 220 9 940 Point Addis Ltd Share Retained Abridged statement of changes in equity for the year ended capital earnings Total 30 June 2023 (5) Balance at 1 July 2021 12 500 8 050 20 550 Profit for the year ended 30 June 2022 9 940 9 940 Distributions to shareholders (2 700) (2 700] Balance at 30 June 2022 12 500 15 290 27 790 Profit for the year ended 30 June 2023 10 220 10 220 Distributions to shareholders (3 700) (3 700] Balance at 30 June 2023 12 500 21 810 34 310