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

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. Samaitas trial balance from the general ledger at December showed the

following balances:

$ $

Revenue

Purchases

Inventories at January

Distribution costs

Administrative expenses

Loan note interest paid

Rental income

Land and buildings: cost including $m land

accumulated depreciation at January

Plant and equipment: cost

accumulated depreciation at January

Investment property at January

Trade receivables

Cash and cash equivalents

c ordinary shares

Share premium

Retained earnings at January

Interim dividend paid

General reserve

loan note repayable issued

Trade payables

Proceeds from sale of equipment

Additional information:

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

after the year end outofdate inventories with a cost of $ were sold for $

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

for $ The equipment had cost $ and had accumulated depreciation

brought forward at January of $ 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 years

Plant and equipment reducing balance

Samaita Ltds accounting policy is to charge a full years depreciation in the year of an

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

eight years old on January

iv On December the company revalued its land and buildings to $

including $ for the land The company follows the revaluation model of IAS

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 companys product portfolio plans, an item of plant with a

carrying value $ at December after adjusting for depreciation for the

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

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

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

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

Fiveyear discount factors at are:

Simple Cumulative

vi The income tax charge current and deferred tax for the year is estimated at $

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

other comprehensive income and the revaluation surplus

vii. An interim dividend of c per share was paid on June A final dividend of c

per share was declared by the directors on January No dividends were paid or

declared in

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

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

companys shares on the date of the bonus issue was $ each.

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

property at December was $

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 December

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

You are also required to show all your workings. marks