Question 2 25 marks Company S owns sheep and the end of its reporting period is 30 June. The sheep are held to produce wool. At 1 July 2010 Company S had 1000 sheep and 200 lambs, with a feir value (less point-of-sale costs) of $200 per sheep and $50 per lamb. During the year ended 30 June 2011 the following occurred: 100 new sheep were purchased at $210 each 20 lambs matured into sheep 3 lambs died 1. 2. 3. 4. 5. 6. 15 lambs were bom 100 sheep were sold for $240 each Salaries and other operating costs were $34,000 Company S owns the farmland which was purchased for $1.5 million. The land is measured at fair value using the revaluation model under IAS 16. As at 30 June 2011 the fair value of the land was assessed at $5.6 million ($4.7 million as at 30 June 2010). Company S also has plant and equipment which was purchased for $1 million and is depreciated over its expected useful life of 10 years. As at 1 July 2010 the plant and equipment was 2 years old. As at 30 June 2011 the fair value (less point-of-sale costs) is determined as $250 per sheep and $55 per lamb. Company S has determined that these are the appropriate fair values to use for the purposes of transfers, births and deaths of lambs. The price change between a lamb and a sheep at the time of maturity during the year was estimated to be $195. During the year company S produced wool with a fair value less point-of-sale costs of $387 000. Required Preform the appropriate reconciliation and prepare the relevant extracts of statement of comprehensive income and statement of financial performance and the necessary disclosure notes for Company S in accordance with IAS 41 for the year ended 30 June 2011