show the workings please

QUESTION ONE (Compulsory) The following list of balances were extracted from the books of Mirror Ltd for the year ending 31" December 2015. K' K' 5,000 K0.50 Ordinary Shares 1,000 Share Premium Revaluation Reserve 1,500 Retained Earnings 2,000 Goodwill 500 Plant and Equipment at cost 4,000 Buildings at cost 5,000 Motor Vehicles at cost 2,650 Inventory-1 January 2015 1,000 Trade Receivables and Payables 200 150 Cash and cash equivalents 1,000 Intangible assets 1,000 Purchases and sales 3, 500 5,000 Administrative expenses 200 Salaries and wages 100 Stationery 50 Medical expenses-admin staff 120 Transportation costs 100 Salesmen's salaries and commissions 60 Interest paid 120 Bank charges 50 12% Loan notes 3,000 15% Loan notes 2,000 19, 650 19, 650 Additional Information 1. Closing inventory at the year-end was valued at K800. 2. Goodwill, motor vehicles and buildings are a cash generating unit whose net realizable value could not be determined but whose cash flows for the next three years are given as: Year 1. 3,000 2. 4,000 3. 4,000 The interest rate used to calculate the value in use is given as 30%. 3. Plant and equipment is a qualifying asset built from general borrowings. The construction of the plant was completed on 31st December 2015 at which time a professional was brought in to give the market value of the property as the company uses the revaluation model. The value as at 31st December was given as K5, 000. 4. Included in the intangible asset figure was the cost of research which accounted for 50% of the total asset value. Of the remaining value, 60% was for the development of a production process which the company had no intention of completing in order to get ready for use or sale. 5. A provision is to be made for restructuring costs of K2, 000. 6. In order to raise capital, the company sold 1, 000 shares for K1 each. 7. A dividend of K400 is payable and a transfer to general reserves of K200 is required. Required a) Prepare the Statement of profit or loss and other comprehensive income, the Statement of financial position and the statement of changes in equity as at 31 December 2015 in accordance with IAS 1 Presentation of Financial Statements. 25 Marks QUESTION ONE (Compulsory) The following list of balances were extracted from the books of Mirror Ltd for the year ending 31" December 2015. K' K' 5,000 K0.50 Ordinary Shares 1,000 Share Premium Revaluation Reserve 1,500 Retained Earnings 2,000 Goodwill 500 Plant and Equipment at cost 4,000 Buildings at cost 5,000 Motor Vehicles at cost 2,650 Inventory-1 January 2015 1,000 Trade Receivables and Payables 200 150 Cash and cash equivalents 1,000 Intangible assets 1,000 Purchases and sales 3, 500 5,000 Administrative expenses 200 Salaries and wages 100 Stationery 50 Medical expenses-admin staff 120 Transportation costs 100 Salesmen's salaries and commissions 60 Interest paid 120 Bank charges 50 12% Loan notes 3,000 15% Loan notes 2,000 19, 650 19, 650 Additional Information 1. Closing inventory at the year-end was valued at K800. 2. Goodwill, motor vehicles and buildings are a cash generating unit whose net realizable value could not be determined but whose cash flows for the next three years are given as: Year 1. 3,000 2. 4,000 3. 4,000 The interest rate used to calculate the value in use is given as 30%. 3. Plant and equipment is a qualifying asset built from general borrowings. The construction of the plant was completed on 31st December 2015 at which time a professional was brought in to give the market value of the property as the company uses the revaluation model. The value as at 31st December was given as K5, 000. 4. Included in the intangible asset figure was the cost of research which accounted for 50% of the total asset value. Of the remaining value, 60% was for the development of a production process which the company had no intention of completing in order to get ready for use or sale. 5. A provision is to be made for restructuring costs of K2, 000. 6. In order to raise capital, the company sold 1, 000 shares for K1 each. 7. A dividend of K400 is payable and a transfer to general reserves of K200 is required. Required a) Prepare the Statement of profit or loss and other comprehensive income, the Statement of financial position and the statement of changes in equity as at 31 December 2015 in accordance with IAS 1 Presentation of Financial Statements. 25 Marks