Question 5 (25 marks) You are provided with the following statement of financial position of Kuhle Ltd: Statement of financial position on 31 December ASSETS Land and buildings 165 Vehicles 85 Furniture 45 125 Share capital ( 2 000 000 authorised NPV shares) Cash on hand 5 Bank overdraft (2) 26 Inventory Trade and other receivables 15 Shareholders for dividends 11 Total assets 475 Equity and Liabilities 305 110 Retained earnings Trade and other payables Long-term loans Accumulated depreciation 79 21 Income tax expense 30 Total equity and liabilities 515 Required: 1. Critically evaluate the presentation of the above statement according to the requirements of International Accounting Standards (IAS 1). (19 marks) 2. Explain the meaning of each of these terms and give an example in each case Page 14 of 24 a. Contingent liability b. Reserve (3 marks) (3 marks) The End