Revenue		216,000
Cost of sales	91,080
Distribution costs	21,180
Administrative expenses	23,760
Interest paid	2,880
Income tax		1,800
Property, plant and equipment:
Carrying amount at 1 November 20X7	270,000
Inventories 31 October 20X8	18,000
Trade receivables	22,500
Bank	10,800
Payables		11,880
Deferred tax 1 November 20X7		12,600
8% Loan note issued 1 November 20X7, repayable 20Y2		72,000
Ordinary $1 share capital		45,000
Retained earnings 1 November 20X7		100,920
	460, 200	460,200

(i) Revenue includes cash sales of 6 million for goods sold in August 20X8 to Abbeyfax plc, a bank. The goods are marked up at 25% on cost. Abbeyfax has the option to require Nemesis Ltd to repurchase these goods on 1 November 20X8 at their original selling price plus a one-off fee of 180,000. Abbeyfax has not taken delivery of the goods, and has always made Nemesis repurchase goods in the past under similar agreements.

(ii) Included within property, plant and equipment is a building with a carrying amount of 4.5 million. On 1 November 20X7 it was revalued to $6 million. The building had an estimated life of twenty five years when purchased ten years prior to the revaluation date. This has not changed as a result of the revaluation. The directors of Nemesis Ltd wish to incorporate this value into the financial statements for the year ended 31 October 20X8.

All other property, plant and equipment is depreciated at 20% per annum on the reducing balance basis.

(iii) On 1 October 20X8, Nemesis closed down its Merry Go Round division. The results of

the division from 1 November 20X7 to the date of closure are included in the above trial balance figures. These results are as follows:

$000

Revenue 9,800

Cost of sales 6,450

Distribution costs 2,040

Admin expenses 1,980

The net assets of the division were sold at a loss of $3.2 million which is currently included

within cost of sales. The Merry Go Round division satisfies the criteria for a discontinued

operation under IFRS5 Non-current Assets Held for Sale and Discontinued Operations.

(iv) The provision for income tax for the year ended 31 October 20X8 has been estimated at $23.4 million. The only temporary differences for deferred taxation purposes are in respect of accelerated capital allowances, which at 31 October 20X8 were $43.2 million. Income tax is charged at 20%.

(v) The company has a share option scheme in operation. The terms of the options are that option holders are permitted to subscribe for 1 equity share for every option held at a price of 2 per share. At 1 November 20X7, 20 million share options were in issue. On 1 May 20X8, the holders of 10 million options exercised their option to purchase, and 14 million new options were issued on the same terms as the existing options. During the year ended 31 October 20X8, the average market price of an equity shares in Nemesis Ltd was 4.00.

Required:

Prepare a statement of profit or loss and other comprehensive income for the year ended

31 October 20X8 for Nemesis together with a statement of financial position and a statement of changes in equity at that date.