Requirement Draft a report to Carson's Ltds management containing the following: a) A statement of profit or loss and comprehensive income for the year ending 31 December 2021 and a statement of financial position as at 31 December 2021 adjusted for the issues identified within Appendix 3. You should also provide a commentary detailing how you arrived at your chosen treatment making reference to specific IFRSs. Please see Appendix 4 for a suggested proforma to present your workings. b) A critical evaluation of ONE of the following areas: i. Leasing and its impact on a companys financial statements. ii. Fair value and its role within the banking crisis of 2008. iii. How impairment can be used by managers to manage earnings.

Appendix 4: Adjustment Proforma Statement of profit or loss and other comprehensive income '000 Issue 1 Revenue 24,983 Cost of sales (14,328) Gross profit/(loss) 10,655 Impairment of assets Administrative expenses (2,644) Operating profit/(loss) 8,011 Finance income 77 Finance costs (1,366) Profit/(loss) before tax 6,722 Taxation (3,817) Profit/(loss) for the year 2,905 Other comprehensive income Foreign exchange gains and losses 155 Total comprehensive income 3,060 Commentary: Issue 1 Issue 2 Issue 2 Issue 3 Issue 4 etc. '000 Appendix 4: Adjustment Proforma Statement of profit or loss and other comprehensive income '000 Issue 1 Revenue 24,983 Cost of sales (14,328) Gross profit/(loss) 10,655 Impairment of assets Administrative expenses (2,644) Operating profit/(loss) 8,011 Finance income 77 Finance costs (1,366) Profit/(loss) before tax 6,722 Taxation (3,817) Profit/(loss) for the year 2,905 Other comprehensive income Foreign exchange gains and losses 155 Total comprehensive income 3,060 Commentary: Issue 1 Issue 2 Issue 2 Issue 3 Issue 4 etc. '000