Question : Preparation and Presentation of the Balance Sheet/Statement of Financial Position Upside-Down Trading Limited, a company listed on the Music Stock Exchange, is a trading and investment entity. The company trades exclusively in steel and aluminium component, and also has an investing arm. Upside-Down Trading Limited have just engaged you as their finance director to assist in the preparation of the entity's 2021 financial statements. The financial period of the company is from September 1 to August 31 The company has provided you the following list of accounts, and the trial balance totals per each account, as at end of their current final year Trial Balance Figure $50,000,000 $5,000,000 $15,890,000 $14,500,000 $11,950,000 $4,100,000 $56,100,390 $6,900,000 $8,100,000 $4,502,000 $18,540,000 $75,650,000 $16,850,000 $196,000,000 $215,580,000 $5,100,450 $1,830,000 $1,520,000 $218,702,000 $168,221,000 $5,020,000 $312,512,000 $150,072,000 $122,589,000 $158,900,000 $6,500,000 Account Name 11% Debentures 7% Bonds (Due in Less than 12 Months) Accounts Payable Accounts Receivables Cash and Cash Equivalents Copyright and R&D Cost of Goods Sold Current Tax Liabilities Employee Benefit Obligations Finan spenses Goodwill Inventory Loans Due in Less than 12 Months Long-Term Investments Long-Term Loans Loss on Sale of Equipment Other Payables Other Receivables (Due in more than 12 Months) Paid-Up Capital Plant and Equipment Prepaid Expenses Property Reserves Retained Earnings Sales Revenue Short-Term Investments Additional Information: 1. During the year, Upside-Down Trading Limited purchased $7,000,000 worth of machine equipment that has yet to be added to the relevant non-current asset account. 2. For the period ended August 31, 2021, Upside-Down Global Trading Limited recorded a loss of $7,500,000. This amount has already been closed to the Retained Earnings balance as per the trial balance The internal auditor found from a recent review that $4,000,000 of loans listed as being payable in 3 next 12 months are not due till 2026. 4. All prepaid expenses are expected to be consumed by the end of December 31, 2021. Page | 2 5. Upside Down Trading Limited has been offered $15,000,000 to sell its properties. The transaction would -- if accepted -- be accepted in June 2028. 6. In 2019 the company sold property valued at $19,000,000 for $26,000,000. The company is of the opinion that in 2024 it will purchase property to the value of $11,000,000. 7. The value of the Inventory as shown in the trial balance is the net realizable value. The value of inventory at cost is $65,650,000. Required Using the information supplied, prepare a balance sheet/statement of financial position for Upside-Down Trading Limited for the end of 2025 that conforms with IFRS IAS 1 recommendations and requirements of the course. Question : Preparation and Presentation of the Balance Sheet/Statement of Financial Position Upside-Down Trading Limited, a company listed on the Music Stock Exchange, is a trading and investment entity. The company trades exclusively in steel and aluminium component, and also has an investing arm. Upside-Down Trading Limited have just engaged you as their finance director to assist in the preparation of the entity's 2021 financial statements. The financial period of the company is from September 1 to August 31 The company has provided you the following list of accounts, and the trial balance totals per each account, as at end of their current final year Trial Balance Figure $50,000,000 $5,000,000 $15,890,000 $14,500,000 $11,950,000 $4,100,000 $56,100,390 $6,900,000 $8,100,000 $4,502,000 $18,540,000 $75,650,000 $16,850,000 $196,000,000 $215,580,000 $5,100,450 $1,830,000 $1,520,000 $218,702,000 $168,221,000 $5,020,000 $312,512,000 $150,072,000 $122,589,000 $158,900,000 $6,500,000 Account Name 11% Debentures 7% Bonds (Due in Less than 12 Months) Accounts Payable Accounts Receivables Cash and Cash Equivalents Copyright and R&D Cost of Goods Sold Current Tax Liabilities Employee Benefit Obligations Finan spenses Goodwill Inventory Loans Due in Less than 12 Months Long-Term Investments Long-Term Loans Loss on Sale of Equipment Other Payables Other Receivables (Due in more than 12 Months) Paid-Up Capital Plant and Equipment Prepaid Expenses Property Reserves Retained Earnings Sales Revenue Short-Term Investments Additional Information: 1. During the year, Upside-Down Trading Limited purchased $7,000,000 worth of machine equipment that has yet to be added to the relevant non-current asset account. 2. For the period ended August 31, 2021, Upside-Down Global Trading Limited recorded a loss of $7,500,000. This amount has already been closed to the Retained Earnings balance as per the trial balance The internal auditor found from a recent review that $4,000,000 of loans listed as being payable in 3 next 12 months are not due till 2026. 4. All prepaid expenses are expected to be consumed by the end of December 31, 2021. Page | 2 5. Upside Down Trading Limited has been offered $15,000,000 to sell its properties. The transaction would -- if accepted -- be accepted in June 2028. 6. In 2019 the company sold property valued at $19,000,000 for $26,000,000. The company is of the opinion that in 2024 it will purchase property to the value of $11,000,000. 7. The value of the Inventory as shown in the trial balance is the net realizable value. The value of inventory at cost is $65,650,000. Required Using the information supplied, prepare a balance sheet/statement of financial position for Upside-Down Trading Limited for the end of 2025 that conforms with IFRS IAS 1 recommendations and requirements of the course
