Requirement Prepare the following for Prisca Ltd in accordance with the minimum requirements of the New Zealand equivalents to International Financial Reporting Standards and the Companies Act 1993: 1 2k marks 21 marks Statement of Profit and loss and Comprehensive Income for the year ended 31st March 2021 2 Statement of Changes in Equity for the year ended 31st March 2021 3 Statement of Financial Position as at 31st March 2021 (Comparative figures are required) 4 Notes to the above financial statements 5 Show workings for Adjustments for Expenses 6 Marks are awarded for presentation Total 45 marks 7. marks 3 Marks 100 marks Information: Prisca Ltd Prisca Ltd is a New Zealand owned company reporting under full IFRS. The company manufactures and supplies high quality Garden tools and gardening equipment. It sells its own products and also sells on commission for other companies You are presented with the trial balance for Prisca Ltd as at 31st March 2021, together with opening balances at 1st April 2020. Trial Balance as at 31st March 2011 DEBIT CREDIT 1ooo's 1000's Trial Balance as at 1st April 2010 DEBIT CREDIT Looo's 1ooo's Accounts Payable Accounts Receivable Accumulated Deprecation - Puliding Accumulated Deprecationitures 2.592 Acumulated Depreciation Machinery Netto in SU 17C Rain showers wing For Prise x + aginfile.php/1168665/mod_resource/content/1/ACTY6201%20Group%20Assignment%20Ser 3 924 2,772 18,110 120 2.772 308 158 587 2,880 130 436 436 359 1322 352 342 Bank Buildings (At Cost) Cost of Sales Commission Income Directors' Fees Expenses - Distribution Expenses - Administration Expenses - Financial Fixtures and Equipment (At Cost) GST Payable Income Tax Expense Income Tax Payable Intangible Assets Interim Dividend (Pald on 15th March 2021) inventory Investments Investment Income Land (at Valuation) Lease Expenses Loan Machinery (at Cost) Mortgage Motor Vehicles (at Cost) Other income Other Reserve Revaluation of Investments Prepayments Provisional Tax Paid 726 780 528 5.563 933 3,467 933 79 3.960 3.960 119 554 554 1870 1500 634 660 383 363 497 119 Share Cap Wese und Salaries Total EL 17C Rain showers Additional Information: Ignore GST applications in relation to this additional information. Prisca Ltd recorded amounts are rounded to the nearest dollar. 1. a. b. Depreciation has not been accounted for. Depreciation rates are: Buildings - 22 p.a. (straight line) on cost or valuation Fixture and equipment -20% p.a. (straight line) on cost Machinery -30% diminishing value Motor vehicles -30% diminishing value C d. 2. On 1st April 2020 Prisca Ltd commenced the construction an the company. The warehouse was completed and ready for occupata Prisca Ltd did not need to borrow funds directly for the construct of chest because it had existing long-term financing available of $400,000 8 der $154,000 at 10% per annum which were used for the construction project tsort materials, labour, and services relating to the construction of the factory were as follow 1 April 2020 60,000 30 June 2020 60,000 31 December 2020 60,000 1 March 2021 190,000 370,000 Above amounts spent during the period was charged to administrative expense. The capitalized cost of the construction for the year ended 31st March 2021 has not been accounted for. 3. An invoice for some repair work done on the machinery prior to the year and has been received but not processed. The invoice total was 55.000 4 Expenses - Administration, include: Audit fees paid to ABC Associate Accounting fees paid to MACTACO Donations to approved charities 143,000 356,000 121,000 Expenses - Financial, inchider interest and more Interestado 350,000 Ho 17C Rain showers 6. Wages and Salaries include $200,000 related to sales staff and $300,000 for the director's remuneration. 7. Lease expenses are for computers and motor vehicles. $30,000 of the computer lease expenses related to computers for the sales staff 8. Depreciation expense for Fixtures and Equipment in the year 2020, is overstated by $50,000, 9. The buildings comprise a production area, an office space apo te packaging area. There is also a small shop next to the office for direct sales and custo pickups. Traditionally the company charges 10% of both its building and sturendi equipment depreciation to distribution expenses 10 One of the motor vehicles is a delivery truck which is recorded at the cost of $50,000 with accumulated depreciation to the beginning of the current year of 510,000 There were no disposals or additions of fixtures and equipment during the year. 11. 12. New machinery was purchased on tst January 2021. 13. A machine was sold for $200,000 cash on 31st March 2021. The machine had an original cost of $400,000 and a carrying amount of $150,000. No record has been made of the sale On 31st March 2021, the land was revalued by New Lynn Registered Valen.arm of independent registered Valuers who considered the land to have increased in value to 54.250,000. This revaluation has yet to be recorded. 15. On ist March 20, Prisca Ltd adopted the revaluation model to account for the class of Building. The fair value of buildings was determined to be 53.310,000 by New Registered Valuers. This has not been recorded 16. Intangible as we brand names and trademarks, Intars olay cost 160,000, impairment testing of the intangible assets indicates 130.000 impairment for the current year which has not been induced expenses 19. Other com les rencof.000 TE 17C Rain showers 18 As at 1st April 2020 there were 5,280,000 shares on issue at $1each. On 10th March 2021, another 600,000 shares were issued at $1.50 each. The money has been received from the trust company handling the share issue on 31st March 2021. This issue and the proceeds from the issue has not been recorded in the information supplied, 19. The mortgage is secured over land and buildings and carries a flat interest rate of to per annum. A lump sum capital repayment was made on 31st March and has been recorded. This amount is the annual repayment required under the mortgage agreement. 20. On 31st March 2021, it is estimated that the position of allowanco tot was $135,000 based on analysis of previous debt collection history se desene Allowance method to account for doubtfuldebts. 21. Inventory is carried at the lower of cost (Weighted Average cost and the value. 25% of inventories are raw materials, 20% are work in progress and the sale comprises finished goods held for sale. The net realizable value of Inventory $5.500,000. 22. Outstanding director's fees for the March 2021 meeting of $20,000 have not been recorded 23. Included in the prepayments, there is a property insurance bill of $120,000 paid on 1st January 2031 and covering the period from ist January 2013 December 2017. This has not been adjusted on the Balance Date. 24. Investments are shares of Tauranga Lid purchased in February 2020. The fair valore was 5938,000 at the year end. This revaluation has not been accounted for. Investments are classified as available for sale Francial assets by the company. 25 A contract has been entered into to extend the building. This work will be carried out during the next financial year and will cost $700,000 Corussion Income, earned but not yet recognised, was 1150,000 for this year. 27 Apart from the change in the measurement of building, there are no changes the accounting polices from those applied last year. on oth April 2011 the directors have authorized audiend or de certs per 2, 29 On 3rd Marproduction plan was destroyed by a fine of 1000,000, man will cover of the damages, but ponente 17C Rain showers 28. On 10th April 2021, the directors have authorized a final dividend of 20 cents per share 29. On 23rd May 2021, a production plant was destroyed by a fire resulting in damages of $800,000. Insurance will cover $600,000 of the damages, but payment of the insurance Page 6 claim has been delayed by a police investigation. (Assume the chiede statements are authorized for the issue is 31st May 2021) 30. A major debtor Northwing Ltd owing $150,000 to Prisca Lid went into liquidatok This information became available to Prisca Ltd on 7th May 2021. No dustment to the allowance for doubtfuldebts has been made to reflect this fact. Correspondence has been received from the liquidator Indicating that Prisca Ltd cannot collect anything from the liquidation 31. Prisca Ltd has been involved in a dispute with a government environment agency relating to the release of noxious wastewater from its manufacturing plant in early February 2011. An expert investigation was conducted to determine if the company was at fault. The draft financial report already discloses contingent liability in the notes detailing the investigation and estimating the potential damages at $800,000. The investigator's report, released on 1st April 2021, found Prisca Ltd to be responsible for the release and damages amounting to $650,000 were payable by the company 32. A purchase invoice amounted to 13.000 dated on 28 March 2021 was omitted from the books of accounts. The customer has delivered poods to the company on the same date AD E 17C Rain showers Requirement Prepare the following for Prisca Ltd in accordance with the minimum requirements of the New Zealand equivalents to International Financial Reporting Standards and the Companies Act 1993: 1 2k marks 21 marks Statement of Profit and loss and Comprehensive Income for the year ended 31st March 2021 2 Statement of Changes in Equity for the year ended 31st March 2021 3 Statement of Financial Position as at 31st March 2021 (Comparative figures are required) 4 Notes to the above financial statements 5 Show workings for Adjustments for Expenses 6 Marks are awarded for presentation Total 45 marks 7. marks 3 Marks 100 marks Information: Prisca Ltd Prisca Ltd is a New Zealand owned company reporting under full IFRS. The company manufactures and supplies high quality Garden tools and gardening equipment. It sells its own products and also sells on commission for other companies You are presented with the trial balance for Prisca Ltd as at 31st March 2021, together with opening balances at 1st April 2020. Trial Balance as at 31st March 2011 DEBIT CREDIT 1ooo's 1000's Trial Balance as at 1st April 2010 DEBIT CREDIT Looo's 1ooo's Accounts Payable Accounts Receivable Accumulated Deprecation - Puliding Accumulated Deprecationitures 2.592 Acumulated Depreciation Machinery Netto in SU 17C Rain showers wing For Prise x + aginfile.php/1168665/mod_resource/content/1/ACTY6201%20Group%20Assignment%20Ser 3 924 2,772 18,110 120 2.772 308 158 587 2,880 130 436 436 359 1322 352 342 Bank Buildings (At Cost) Cost of Sales Commission Income Directors' Fees Expenses - Distribution Expenses - Administration Expenses - Financial Fixtures and Equipment (At Cost) GST Payable Income Tax Expense Income Tax Payable Intangible Assets Interim Dividend (Pald on 15th March 2021) inventory Investments Investment Income Land (at Valuation) Lease Expenses Loan Machinery (at Cost) Mortgage Motor Vehicles (at Cost) Other income Other Reserve Revaluation of Investments Prepayments Provisional Tax Paid 726 780 528 5.563 933 3,467 933 79 3.960 3.960 119 554 554 1870 1500 634 660 383 363 497 119 Share Cap Wese und Salaries Total EL 17C Rain showers Additional Information: Ignore GST applications in relation to this additional information. Prisca Ltd recorded amounts are rounded to the nearest dollar. 1. a. b. Depreciation has not been accounted for. Depreciation rates are: Buildings - 22 p.a. (straight line) on cost or valuation Fixture and equipment -20% p.a. (straight line) on cost Machinery -30% diminishing value Motor vehicles -30% diminishing value C d. 2. On 1st April 2020 Prisca Ltd commenced the construction an the company. The warehouse was completed and ready for occupata Prisca Ltd did not need to borrow funds directly for the construct of chest because it had existing long-term financing available of $400,000 8 der $154,000 at 10% per annum which were used for the construction project tsort materials, labour, and services relating to the construction of the factory were as follow 1 April 2020 60,000 30 June 2020 60,000 31 December 2020 60,000 1 March 2021 190,000 370,000 Above amounts spent during the period was charged to administrative expense. The capitalized cost of the construction for the year ended 31st March 2021 has not been accounted for. 3. An invoice for some repair work done on the machinery prior to the year and has been received but not processed. The invoice total was 55.000 4 Expenses - Administration, include: Audit fees paid to ABC Associate Accounting fees paid to MACTACO Donations to approved charities 143,000 356,000 121,000 Expenses - Financial, inchider interest and more Interestado 350,000 Ho 17C Rain showers 6. Wages and Salaries include $200,000 related to sales staff and $300,000 for the director's remuneration. 7. Lease expenses are for computers and motor vehicles. $30,000 of the computer lease expenses related to computers for the sales staff 8. Depreciation expense for Fixtures and Equipment in the year 2020, is overstated by $50,000, 9. The buildings comprise a production area, an office space apo te packaging area. There is also a small shop next to the office for direct sales and custo pickups. Traditionally the company charges 10% of both its building and sturendi equipment depreciation to distribution expenses 10 One of the motor vehicles is a delivery truck which is recorded at the cost of $50,000 with accumulated depreciation to the beginning of the current year of 510,000 There were no disposals or additions of fixtures and equipment during the year. 11. 12. New machinery was purchased on tst January 2021. 13. A machine was sold for $200,000 cash on 31st March 2021. The machine had an original cost of $400,000 and a carrying amount of $150,000. No record has been made of the sale On 31st March 2021, the land was revalued by New Lynn Registered Valen.arm of independent registered Valuers who considered the land to have increased in value to 54.250,000. This revaluation has yet to be recorded. 15. On ist March 20, Prisca Ltd adopted the revaluation model to account for the class of Building. The fair value of buildings was determined to be 53.310,000 by New Registered Valuers. This has not been recorded 16. Intangible as we brand names and trademarks, Intars olay cost 160,000, impairment testing of the intangible assets indicates 130.000 impairment for the current year which has not been induced expenses 19. Other com les rencof.000 TE 17C Rain showers 18 As at 1st April 2020 there were 5,280,000 shares on issue at $1each. On 10th March 2021, another 600,000 shares were issued at $1.50 each. The money has been received from the trust company handling the share issue on 31st March 2021. This issue and the proceeds from the issue has not been recorded in the information supplied, 19. The mortgage is secured over land and buildings and carries a flat interest rate of to per annum. A lump sum capital repayment was made on 31st March and has been recorded. This amount is the annual repayment required under the mortgage agreement. 20. On 31st March 2021, it is estimated that the position of allowanco tot was $135,000 based on analysis of previous debt collection history se desene Allowance method to account for doubtfuldebts. 21. Inventory is carried at the lower of cost (Weighted Average cost and the value. 25% of inventories are raw materials, 20% are work in progress and the sale comprises finished goods held for sale. The net realizable value of Inventory $5.500,000. 22. Outstanding director's fees for the March 2021 meeting of $20,000 have not been recorded 23. Included in the prepayments, there is a property insurance bill of $120,000 paid on 1st January 2031 and covering the period from ist January 2013 December 2017. This has not been adjusted on the Balance Date. 24. Investments are shares of Tauranga Lid purchased in February 2020. The fair valore was 5938,000 at the year end. This revaluation has not been accounted for. Investments are classified as available for sale Francial assets by the company. 25 A contract has been entered into to extend the building. This work will be carried out during the next financial year and will cost $700,000 Corussion Income, earned but not yet recognised, was 1150,000 for this year. 27 Apart from the change in the measurement of building, there are no changes the accounting polices from those applied last year. on oth April 2011 the directors have authorized audiend or de certs per 2, 29 On 3rd Marproduction plan was destroyed by a fine of 1000,000, man will cover of the damages, but ponente 17C Rain showers 28. On 10th April 2021, the directors have authorized a final dividend of 20 cents per share 29. On 23rd May 2021, a production plant was destroyed by a fire resulting in damages of $800,000. Insurance will cover $600,000 of the damages, but payment of the insurance Page 6 claim has been delayed by a police investigation. (Assume the chiede statements are authorized for the issue is 31st May 2021) 30. A major debtor Northwing Ltd owing $150,000 to Prisca Lid went into liquidatok This information became available to Prisca Ltd on 7th May 2021. No dustment to the allowance for doubtfuldebts has been made to reflect this fact. Correspondence has been received from the liquidator Indicating that Prisca Ltd cannot collect anything from the liquidation 31. Prisca Ltd has been involved in a dispute with a government environment agency relating to the release of noxious wastewater from its manufacturing plant in early February 2011. An expert investigation was conducted to determine if the company was at fault. The draft financial report already discloses contingent liability in the notes detailing the investigation and estimating the potential damages at $800,000. The investigator's report, released on 1st April 2021, found Prisca Ltd to be responsible for the release and damages amounting to $650,000 were payable by the company 32. A purchase invoice amounted to 13.000 dated on 28 March 2021 was omitted from the books of accounts. The customer has delivered poods to the company on the same date AD E 17C Rain showers