Samaita Ltd is a quoted company reporting under IFRSs. During the year end $31$ December

$2022,$ the company changed its accounting policy with respect to property valuation. There are

also a number of other issues that need to be finalised before the financial statements can be

published. Samaita$$s trial balance from the general ledger at $31$ December $2022$ showed the

following balances:

$$000$ $$000$

Revenue $5296$

Purchases $3338$

Inventories at $1$ January $2022888$

Distribution costs $1028$

Administrative expenses $690$

Loan note interest paid $6$

Rental income $96$

Land and buildings: cost $($including $$90$m land$)1680$

accumulated depreciation at $1$ January $2022240$

Plant and equipment: cost $516$

accumulated depreciation at $1$ January $2022252$

Investment property at $1$ January $20221096$

Trade receivables $1082$

Cash and cash equivalents $64$

$50$c ordinary shares $200$

Share premium $488$

Retained earnings at $1$ January $20221506$

Interim dividend paid $12$

General reserve $1140$

$4\%$ loan note repayable $2028($issued $2020)300$

Trade payables $868$

Proceeds from sale of equipment $14$

$1040010400$

Additional information:

i$.$ Closing inventories were counted and amounted to $$776000$ at cost$.$ However, shortly

after the year end out$-$of$-$date inventories with a cost of $$42000$ were sold for $$28000.$

ii$.$ At the beginning of the year, Samaita Ltd disposed of some malfunctioning equipment

for $$14000.$ The equipment had cost $$30000$ and had accumulated depreciation

brought forward at $1$ January $2022$ of $$6000.$ There were no other additions or disposal

to property, plant and equipment in the year.

iii. The company treats depreciation on plant and equipment as a cost of sale and on land

and buildings as an administrative cost. Depreciation rates as per the company's

accounting policy note are as follows:

Buildings Straight line over $50$ years

Plant and equipment $20\%$ reducing balance

Samaita Ltd$$s accounting policy is to charge a full year$$s depreciation in the year of an

asset's purchase and none in the year of disposal. Samaita Ltd$$s land and buildings were

eight years old on $1$ January $2022.$

iv$.$ On $31$ December $2022$ the company revalued its land and buildings to $$1520000$

$($including $$200000$ for the land$).$ The company follows the revaluation model of IAS $16$

for its land and buildings, but no revaluations had previously been necessary. The

company wishes to treat the revaluation surplus as being realised on disposal of the

assets.

v$.$ Due to a change in the company$$s product portfolio plans, an item of plant with a

carrying value $$44000$ at $31$ December $2022($after adjusting for depreciation for the

year$)$ may be impaired due to a change in use. An impairment test conducted at $31$

December, revealed its fair value less costs of disposal to be $$32000.$ The asset is now

expected to generate an annual net income stream of $$7600$ for the next five years at

which point the asset would be disposed of for $$8400.$ An appropriate discount rate is

$8\%.$ Five$-$year discount factors at $8\%$ are:

Simple Cumulative

$\mathrm{.}6773\mathrm{.}993$

vi$.$ The income tax charge $($current and deferred tax$)$ for the year is estimated at $$90000$

$($of which $$34000$ relates to future payable tax on the revaluation, to be charged to

other comprehensive income $($and the revaluation surplus$)).$

vii. An interim dividend of $3$c per share was paid on $30$ June $2022.$ A final dividend of $1\mathrm{.}5$c

per share was declared by the directors on $28$ January $2023.$ No dividends were paid or

declared in $2021.$

viii. During the year on $1$ July $2022,$ Samaita Ltd made a $1$ for $4$ bonus issue, capitalising its

general reserve. This transaction had not yet been accounted for. The fair value of the

company$$s shares on the date of the bonus issue was $$7\mathrm{.}50$ each.

ix$.$ Samaita Ltd uses the fair value model of IAS $40.$ The fair value of the investment

property at $31$ December $2022$ was $$1176000.$

Required

a$)$ Prepare the statement of profit or loss and other comprehensive income;

b$)$ Prepare a statement of changes in equity for Samaita Ltd for the year to $31$ December

$2022$

c$)$ Prepare a statement of financial position at that date in accordance with IFRSs

You are also required to show all your workings. $(40$ marks$)$