QUESTION 4 The trial balance below was extracted from the records of Asempa Commercial Bank year ended 31st December, 2018. Credit GH'000 19,800 3,600 160 120 Erg mt? 1,640 360 6,800./ Debit GH'000 Interest income Interest on customers' deposits 3,400 o Net commission and fees income Gains on foreign currency transactions Dividend incame Operating expenses 9,600 Directors emolument -80 Auditors fees 160 Dividend paid (note vi) 80 Loan impairment provision (1/1/2018) Rental income from investment property other tovare Corporate current income tax 400 Income surplus (1/1/2018) Capital surplus (1/1/2018)- Statutory reserve (1/1/2018) Stated capital (50,000 equity shares) 1/1/2018 Cash on hand 1,360 Balance with central bank 12,200 Investment in government securities 43,600 Investment in listed financial institutions 640 Receivables from other banks 6,440 Payables to other banks 62,800 Overdraft, loans and advances 2,000 Sundry receivables and prepayments 4,960 Property plant and equipment Accumulated depreciation of PPE (1/1/2018) 960 Investment property (notei) Customers' deposits Expense trade payables and accruals 148,680 80 2,560 400 200 1,640 98,120 13,200 148,680 The following additional notes are relevant: i) The investment property was acquired in January 2018. The rental income from the investment property GH360,000 relates to the three-year period ending 31st December, 2018. The bank adopts fair value model in subsequent measurement of the investment property and fair value assessment at 31st December, 2018 puts the valuation at GH1,000,000. p.a straight line ii) Loan impairment provision at the end of the year as at 31 December 2018 is to be increased to GH2,040,000 iii) Property, plant and equipment is analysed as follows: Cost Acc dep rate of depreciation GH000 GH000 Land 1,000 0 Nil Building 800 360 20% p.a straight line Computers and equipment 3,000 1,200 25% Motor vehicles 80 25% p.a straight line iv) There was neither current tax liability nor current tax asset as at 1 Jan 2018. During 2018, the company paid GH400,000 for corporate tax on interim assessment. The bank is subject to 20% corporate tax. The company adopts nil provision for deferred tax. v) In compliance with the Banking Act 12.5% of profit after tax is to be transferred to statutory reserve. On 15th November 2018, the directors paid an interim dividend of GH1.60 per share. No further dividend is recommended for the year. vii) In order to satisfy the central Bank minimum stated capital requirement, the shareholders, at an emergency meeting on 24th December 2018, approved a bonus issue of one share for 160 pareho tare. Echis one is finis te bepalen in die financial state mearket price of the 2 how to per share. This decision is to be reflected in the 2018 financial statements. Required: Prepare the following financial statements of Asempa for publication in accordance with relevant legislations and International Financial Reporting Standards (IFRS): a) The Statement of Profit or Loss and other Comprehensive Income for the year ended 31st December, 2018 b) The Statement of Changes in Equity for the year ended 31st December, 2018. c) The Statement of Financial Position as at 31st December, 2018. QUESTION 4 The trial balance below was extracted from the records of Asempa Commercial Bank year ended 31st December, 2018. Credit GH'000 19,800 3,600 160 120 Erg mt? 1,640 360 6,800./ Debit GH'000 Interest income Interest on customers' deposits 3,400 o Net commission and fees income Gains on foreign currency transactions Dividend incame Operating expenses 9,600 Directors emolument -80 Auditors fees 160 Dividend paid (note vi) 80 Loan impairment provision (1/1/2018) Rental income from investment property other tovare Corporate current income tax 400 Income surplus (1/1/2018) Capital surplus (1/1/2018)- Statutory reserve (1/1/2018) Stated capital (50,000 equity shares) 1/1/2018 Cash on hand 1,360 Balance with central bank 12,200 Investment in government securities 43,600 Investment in listed financial institutions 640 Receivables from other banks 6,440 Payables to other banks 62,800 Overdraft, loans and advances 2,000 Sundry receivables and prepayments 4,960 Property plant and equipment Accumulated depreciation of PPE (1/1/2018) 960 Investment property (notei) Customers' deposits Expense trade payables and accruals 148,680 80 2,560 400 200 1,640 98,120 13,200 148,680 The following additional notes are relevant: i) The investment property was acquired in January 2018. The rental income from the investment property GH360,000 relates to the three-year period ending 31st December, 2018. The bank adopts fair value model in subsequent measurement of the investment property and fair value assessment at 31st December, 2018 puts the valuation at GH1,000,000. p.a straight line ii) Loan impairment provision at the end of the year as at 31 December 2018 is to be increased to GH2,040,000 iii) Property, plant and equipment is analysed as follows: Cost Acc dep rate of depreciation GH000 GH000 Land 1,000 0 Nil Building 800 360 20% p.a straight line Computers and equipment 3,000 1,200 25% Motor vehicles 80 25% p.a straight line iv) There was neither current tax liability nor current tax asset as at 1 Jan 2018. During 2018, the company paid GH400,000 for corporate tax on interim assessment. The bank is subject to 20% corporate tax. The company adopts nil provision for deferred tax. v) In compliance with the Banking Act 12.5% of profit after tax is to be transferred to statutory reserve. On 15th November 2018, the directors paid an interim dividend of GH1.60 per share. No further dividend is recommended for the year. vii) In order to satisfy the central Bank minimum stated capital requirement, the shareholders, at an emergency meeting on 24th December 2018, approved a bonus issue of one share for 160 pareho tare. Echis one is finis te bepalen in die financial state mearket price of the 2 how to per share. This decision is to be reflected in the 2018 financial statements. Required: Prepare the following financial statements of Asempa for publication in accordance with relevant legislations and International Financial Reporting Standards (IFRS): a) The Statement of Profit or Loss and other Comprehensive Income for the year ended 31st December, 2018 b) The Statement of Changes in Equity for the year ended 31st December, 2018. c) The Statement of Financial Position as at 31st December, 2018