Question 2

The extracts from the trial balance of Tall Ltd as at 31 December 2019 are: K000 K000 Land (K5 million) and buildings at cost 55,000 Plant and equipment at cost 58,500 Accumulated depreciation at 1 January 2018 : buildings 20,000 : plant and equipment 34,500 The following notes are relevant: Non-current assets: The price of property has increased significantly in recent years and on 1 January 2019, the directors decided to revalue the land and buildings. The directors accepted the report of an independent surveyor who valued the land at K8 million and the buildings at K39 million on that date. The remaining life of the buildings at 1 January 2019 was 15 years. Tall Ltd does not make an annual transfer to retained profits to reflect the realisation of the revaluation gain. Plant and equipment is depreciated at 12% per annum using the reducing balance method. No depreciation has yet been charged on any non-current asset for the year ended 31 December 2019. Depreciation is charged to cost of sales.

Required:

Prepare extracts from the statement of profit or loss and other comprehensive income for Tall Ltd for the year ended 31 December 2019 and from the statement of financial position as at the same date with regards property, plant and equipment.