The accountant of Marple plc has provided the following information about the business;

Trial balance as at 31 December 20X9

Debits Credits

Revenues 921

Opening inventories 97

Purchases 323

Business rates 47

Vehicle running expenses 70

Wages;

Drivers 52

Other 115

Other general expenses 34

Interest payable 5

Land 610

Buildings 420

Vehicles 210

Provisions for depreciation:

Buildings 335

Vehicles 110

Trade receivables/payables 37 73

Loan repayable in 20Y5 200

Cash and bank 21

1 ordinary shares 150

Share premium 75

Retained profits 177

2,041 2,041

Additional Information (all numbers in ):

Closing inventories were 42

Taxation is estimated to be 63 for the year to 31 December X9

The depreciation policy for Marple plc is as follows:

Land : is not depreciated

Buildings : straight line method, nil scrap value, 35 year useful life

Vehicles: reducing balance method. 20% per annum.

Prepare the following statements in accordance with IAS 1.

Show the T-Accounts

Statement of Profit or Loss for the period to 31 December X9,

Statement of Financial position as at 31 December X9,

Statment of Changes in Equity for the period to 31 December X9.

What are the advantages and disadvantages to the reader of accounts of summarizing data in financial statements in the way prescribed by IAS1?