QUESTION 1 Sonia Bhd is a manufacturer of electronic products in Kota Batu since 2017. The financial year of Sonia Bhd ends on 30 June each year. Given below is the trial balance of the company as of 30 June 2020. Revenue Cost of sales Administrative expenses Directors' remuneration Distribution cost Finance expenses Investment income Property, plant, and equipment at cost on 1 July 2019 Accumulated depreciation of property, plant, and equipment at 1 July 2019 Biological assets Investments Inventories Trade receivables Bank Trade payables Tax paid Ordinary share capital Retained earnings at 1 July 2019 General reserves Additional information: RM'000 430,000 100,000 580 45,500 2,730 480,000 20,000 160,000 45,000 53,000 65,690 5,000 RM'000 720,000 1. The directors authorised the financial statements for issue on 1 October 2020. 1,100 49,000 46,700 450,000 102,200 38,500 1,407,500 1,407,500 2. On 15 September 2020, the company discovered several fraudulent transactions committed by a senior account clerk who had resigned since May 2020 where he had divested receipts from several customers amounting to RM1,000,000. The former employee has yet to be contacted, and a police report has been lodged on 18 September 2020 in this regard. Of that amount, RM250,000 was stolen in the current year and the balance was stolen in previous years. 3. All items of property, plant and equipment are initially measured at cost. Subsequently, the land and building are measured using the revaluation model, and the other items of property, plant and equipment are measured using the cost model. The revaluation surplus (if any) of the building is to be transferred to retained earnings within its remaining useful life. 4. Land Building 5. Depreciation is calculated on the straight-line method. The details of property, plant, and equipment as of 1 July 2019 are as follows: 6. Plant and machinery i. ii. iii. Cost RM'000 150,000 250,000 80,000 Accumulated Depreciation RM'000 25,000 24,000 Remaining useful life/ Depreciation Rate 20 years 20% Basis of Depreciation Yearly Monthly During the year ended 30 June 2020, the land was revalued to RM180,000,000, and this change in value has not yet been recorded. On 1 July 2019, one of the buildings with the carrying amount of RM90,000,000 (cost of RM100,000,000) was revalued to RM108,000,000. The change in value has not yet been recorded. On 1 April 2020, the company purchased a new soldering machine costing RM10,000,000 on credit. This transaction is not yet recorded. On 30 June 2020, the company conducted an impairment test on the biological asset and discovered that its fair value less cost to sell was RM18,000,000 on that date. The company's inventories valued at RM300,000 was destroyed by fire on 15 May 2020. The company was able to recover RM30,000 from the insurance company and as at 30 June 2020, the amount is still outstanding from the insurance company. Both transactions have not yet been recorded. Waste from the company's production process contaminated the groundwater at the company's plant on 15 June 2020. The company is not required by law to restore the contaminated environment and there is no court case. However, the company has 7. made a public announcement that it would restore any environmental contamination caused by the company. The restoration cost is estimated to be RM1,500,000. The tax expense for the year is estimated to be RM4,200,000. Required: Prepare the following financial statements of Sonia Bhd in accordance with MFRS 101 Presentation of Financial Statements and other relevant Malaysian Financial Reporting Standards. a. Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020. b. Statement of Changes in Equity for the year ended 30 June 2020. (9 marks) (4 marks) c. Statement of Financial Position as at 30 June 2020. (A note on property, plant and equipment is also required) (17 marks) (Total: 30 marks) QUESTION 1 Sonia Bhd is a manufacturer of electronic products in Kota Batu since 2017. The financial year of Sonia Bhd ends on 30 June each year. Given below is the trial balance of the company as of 30 June 2020. Revenue Cost of sales Administrative expenses Directors' remuneration Distribution cost Finance expenses Investment income Property, plant, and equipment at cost on 1 July 2019 Accumulated depreciation of property, plant, and equipment at 1 July 2019 Biological assets Investments Inventories Trade receivables Bank Trade payables Tax paid Ordinary share capital Retained earnings at 1 July 2019 General reserves Additional information: RM'000 430,000 100,000 580 45,500 2,730 480,000 20,000 160,000 45,000 53,000 65,690 5,000 RM'000 720,000 1. The directors authorised the financial statements for issue on 1 October 2020. 1,100 49,000 46,700 450,000 102,200 38,500 1,407,500 1,407,500 2. On 15 September 2020, the company discovered several fraudulent transactions committed by a senior account clerk who had resigned since May 2020 where he had divested receipts from several customers amounting to RM1,000,000. The former employee has yet to be contacted, and a police report has been lodged on 18 September 2020 in this regard. Of that amount, RM250,000 was stolen in the current year and the balance was stolen in previous years. 3. All items of property, plant and equipment are initially measured at cost. Subsequently, the land and building are measured using the revaluation model, and the other items of property, plant and equipment are measured using the cost model. The revaluation surplus (if any) of the building is to be transferred to retained earnings within its remaining useful life. 4. Land Building 5. Depreciation is calculated on the straight-line method. The details of property, plant, and equipment as of 1 July 2019 are as follows: 6. Plant and machinery i. ii. iii. Cost RM'000 150,000 250,000 80,000 Accumulated Depreciation RM'000 25,000 24,000 Remaining useful life/ Depreciation Rate 20 years 20% Basis of Depreciation Yearly Monthly During the year ended 30 June 2020, the land was revalued to RM180,000,000, and this change in value has not yet been recorded. On 1 July 2019, one of the buildings with the carrying amount of RM90,000,000 (cost of RM100,000,000) was revalued to RM108,000,000. The change in value has not yet been recorded. On 1 April 2020, the company purchased a new soldering machine costing RM10,000,000 on credit. This transaction is not yet recorded. On 30 June 2020, the company conducted an impairment test on the biological asset and discovered that its fair value less cost to sell was RM18,000,000 on that date. The company's inventories valued at RM300,000 was destroyed by fire on 15 May 2020. The company was able to recover RM30,000 from the insurance company and as at 30 June 2020, the amount is still outstanding from the insurance company. Both transactions have not yet been recorded. Waste from the company's production process contaminated the groundwater at the company's plant on 15 June 2020. The company is not required by law to restore the contaminated environment and there is no court case. However, the company has 7. made a public announcement that it would restore any environmental contamination caused by the company. The restoration cost is estimated to be RM1,500,000. The tax expense for the year is estimated to be RM4,200,000. Required: Prepare the following financial statements of Sonia Bhd in accordance with MFRS 101 Presentation of Financial Statements and other relevant Malaysian Financial Reporting Standards. a. Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020. b. Statement of Changes in Equity for the year ended 30 June 2020. (9 marks) (4 marks) c. Statement of Financial Position as at 30 June 2020. (A note on property, plant and equipment is also required) (17 marks) (Total: 30 marks)