Question 21 The trial balance below relates to Honesty Commercial Bank as at 31st December, 5017. 1. Property, plant and equipment as at 31st December, 2016 was as follows: 20 does not cover land. The directors caused the property (land and building) to be revalued in 1st January, 2017. The valuers assigned value of GHC400,000 for both land and building but advised that the estimated remaining useful life should be maintained. The directors wish to incorporate this valuation in 2017 financial statement 2. There was neither tax liability nor current tax asset as at 1st January, 2017. During 2017, the company paid GH100,000 for corporate tax on interim assessment. The bank is subject to 20% corporate tax. The company adopts nil provision for deferred tax. 3. The investment property was acquired in January 2017. The rental income from the investment property GH 90,000 relates to the three-year period ending 31st December, 2019. The bank adopts fair value model in subsequent measurement of the investment property and fair value assessment at 31st December 2017 puts the valuation at GHC250,000. 4. Loan impairment provision at the end of the year as at 31st December, 2017 is to be increased to GHC510,000. 5. In compliance with the Banking Act 12.5% of profit after tax is to be transferred to statutory reserve. 6. On 15th November, 2017 the directors paid an interim dividend of GHC0.40 per share. No further dividend is recommended for the year. 7. In order to satisfy the Central Bank minimum stated capital requirement, the shareholders, at an emergency meeting on 24th December, 2017 approved a bonus issue of one share for each one held (out of income surplus) to be credited at the current market price of GH5 per share. This decision is to be reflected in the 2017 financial statements. Required: Prepare the following financial statements of Kelewele Limited for publication in accordance with relevant legislations and international reporting standards (IFRS): (a) Prepare the Statement of Comprehensive Income for the year ended 31st December, 2017 (b) Prepare the Statement of Changes in Equity for the ended 31st December, 2017 (c) Prepare the Statement of Financial Position as at 31st December, 2017. Question 21 The trial balance below relates to Honesty Commercial Bank as at 31st December, 5017. 1. Property, plant and equipment as at 31st December, 2016 was as follows: 20 does not cover land. The directors caused the property (land and building) to be revalued in 1st January, 2017. The valuers assigned value of GHC400,000 for both land and building but advised that the estimated remaining useful life should be maintained. The directors wish to incorporate this valuation in 2017 financial statement 2. There was neither tax liability nor current tax asset as at 1st January, 2017. During 2017, the company paid GH100,000 for corporate tax on interim assessment. The bank is subject to 20% corporate tax. The company adopts nil provision for deferred tax. 3. The investment property was acquired in January 2017. The rental income from the investment property GH 90,000 relates to the three-year period ending 31st December, 2019. The bank adopts fair value model in subsequent measurement of the investment property and fair value assessment at 31st December 2017 puts the valuation at GHC250,000. 4. Loan impairment provision at the end of the year as at 31st December, 2017 is to be increased to GHC510,000. 5. In compliance with the Banking Act 12.5% of profit after tax is to be transferred to statutory reserve. 6. On 15th November, 2017 the directors paid an interim dividend of GHC0.40 per share. No further dividend is recommended for the year. 7. In order to satisfy the Central Bank minimum stated capital requirement, the shareholders, at an emergency meeting on 24th December, 2017 approved a bonus issue of one share for each one held (out of income surplus) to be credited at the current market price of GH5 per share. This decision is to be reflected in the 2017 financial statements. Required: Prepare the following financial statements of Kelewele Limited for publication in accordance with relevant legislations and international reporting standards (IFRS): (a) Prepare the Statement of Comprehensive Income for the year ended 31st December, 2017 (b) Prepare the Statement of Changes in Equity for the ended 31st December, 2017 (c) Prepare the Statement of Financial Position as at 31st December, 2017