Question 1

Ruta Co Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2017. K000 2017 K000 2016 Revenue 700 550 Cost of sales (300) (260) Gross profit 400 290 Distribution costs (100) (70) Administrative expenses (70) (60) Profit from operations 230 160 During the year the entity ran down a material business operation with all activities ceasing on 30 March 2017. The results of the operation for 2017 and 2016 were as follows: K000 2017 K000 2016 Revenue 60 70 Cost of sales (40) (45) Distribution costs (13) (14) Administrative expenses (10) (12) Loss from operations (3) (1) The entity made gains of K7,000 on the disposal of non-current assets of the discontinued operation. These have been netted off against administrative expenses.

Required

Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December, 2017 for Ruta Co, complying with the provisions of IFRS 5, disclosing the information on the face of the Statement of Profit or Loss and Other Comprehensive Income. Ignore taxation.