QUESTION 4 The following is the trial balance of Akwaaba Limited, a trading company, as at 31" December, 2016: Debit Credit 500,000 Ordinary shares GHEO GH'000 14,500 8% Loan notes (2012-2017) 10% Preference shares (redeemable) Revaluation surplus 2,500 3,000 800 General reserve 1,500 Retained earnings-1/1/2016 3,600 Administration expenses 8.540 Selling & distribution expenses 5,600 Sales 68.865 Inventory- 31/12/2016 3,150 Cost of sales 35,500 Loan Note interest paid 195 Investment income 360 Leasehold building at valuation-1/1/2016 14,000 Plant and equipment-cost/depreciation 13,750 3,200 Computer equipment-cost/depreciation Motor vehicles-cost/depreciation Investment property Trade receivables Bank Trade payables 7,200 2,000 1,500 400 8,700 9,200 910 3,400 Deferred tax-1/1/2016 2,300 107.335 107.335 Additional information: i) Non-current assets: Depreciation of Property, plant and equipment is to be provided on the following bases: Plant and equipment Computer equipment Motor vehicles 10%on cost 25%on cost 20% on reducing balance .Nodepreciationhasyetbeenchargedonanynon-currentassetfortheyearended 31" December, 2016. iii) iv) v) vi) vii) Required: Akwaaba revalue its buildings at the end of each accounting year. At 31" December, 2016 the relevant value to be incorporated into the financial statements is GH28,200,000. The building's remaining life at the beginning of the current year (1"January 2016) was 25 years. Akwaaba does not make an annual transfer from the revaluation reserve to retained earnings in respect of the realisation of the revaluation surplus. Ignore deferred tax on the revaluation surplus. The company paid ordinary dividends of GH4.8 per share 30th October, 2016. The dividend payments are included in administrative expenses in the trial balance. On 4th November, 2016 the company made a bonus issue from retained earnings of one new share for every four shares in issue at GH10.00 each. This transaction is yet to be recorded in the books. Provision is to be made for a full year's interest on the Loan notes. The investment property held at 31st December, 2016 had a fair value of GH9,700,000. There were no acquisitions or disposals of these investments during the year. In June, 2016, Akwaaba's internal audit unit discovered a fraud committed by the company's credit manager who did not return from a foreign business trip. The outcome of the fraud is that GH1,000,000 of the company's trade receivables have been stolen by the credit manager and are not recoverable. Of this amount, GH400,000 relates to the year ended 31st December, 2015 and the remainder to the current year. Akwaaba is not insured against this fraud. Corporateincometaxpayableestimatedontheprofitfortheyearis GH7,000,000. Prepare the following financial statements of Akwaaba Limited for publication in accordance with International Financial Reporting Standards (IFRS): a) Statement of comprehensive income for the year ended 31st December, 2016; b) Statement of changes in equity for the year ended 31st December, 2016; and c) Statement of financial position as at31st December, 2016. (Note: Accounting policy notes are not required)