The following are the trial balances of Hans Ltd and Aap Ltd as at 31 December 20.4: Hans Ltd Aap Ltd Rand Rand Dr/(Cr) Dr/(Cr) Share capital (100 000/10 000 shares) (100 000) (10 000) Retained earnings - 1 January 20.4 (50 000) (15000) Sales (600 000) (200 000) Dividend from Aap Ltd (5000) Current liabilities (37000) (5000) Loan from Hans Ltd (non-current liability) (20 000) Cost of sales 300 000 100 000 Other expenses 150 000 50 000 Income tax expense 45 000 15 000 Land and buildings (separable) 47 000 Investment in Aap Ltd at cost price 4 500 Loan to Aap Ltd 20 000 Current assets 185 500 65 000 Dividend 40 000 20 000 Hans Ltd acquired 25% of the issued ordinary share capital of Aap Ltd, a manufacturing concern, on 1 January 20.1, when the latter's accumulated loss amounted to R2 000. Aap Ltd's assets were considered to be fairly valued. Hans Ltd significantly influences the operating and financial decisions of Aap Ltd. The trial balances do not take the relationship between Hans Ltd and Aap Ltd into account. On 31 December 20.4, Aap Ltd's shares traded on the JSE Ltd at R5,00 per share. Required Prepare the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity, in which the investment in Aap Ltd is accounted for by using the equity method, of Hans Ltd for the year ended 31 December 20.4. b. Provide the relevant notes to the financial statements of Hans Ltd for the year ended 31 December 20.4 in so far this relates to the investment in associate. a. Your solution must comply with the requirements of International Financial Reporting Standards (IFRS). An accounting policy note is not required. Comparative amounts are not required. The following are the trial balances of Hans Ltd and Aap Ltd as at 31 December 20.4: Hans Ltd Aap Ltd Rand Rand Dr/(Cr) Dr/(Cr) Share capital (100 000/10 000 shares) (100 000) (10 000) Retained earnings - 1 January 20.4 (50 000) (15000) Sales (600 000) (200 000) Dividend from Aap Ltd (5000) Current liabilities (37000) (5000) Loan from Hans Ltd (non-current liability) (20 000) Cost of sales 300 000 100 000 Other expenses 150 000 50 000 Income tax expense 45 000 15 000 Land and buildings (separable) 47 000 Investment in Aap Ltd at cost price 4 500 Loan to Aap Ltd 20 000 Current assets 185 500 65 000 Dividend 40 000 20 000 Hans Ltd acquired 25% of the issued ordinary share capital of Aap Ltd, a manufacturing concern, on 1 January 20.1, when the latter's accumulated loss amounted to R2 000. Aap Ltd's assets were considered to be fairly valued. Hans Ltd significantly influences the operating and financial decisions of Aap Ltd. The trial balances do not take the relationship between Hans Ltd and Aap Ltd into account. On 31 December 20.4, Aap Ltd's shares traded on the JSE Ltd at R5,00 per share. Required Prepare the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity, in which the investment in Aap Ltd is accounted for by using the equity method, of Hans Ltd for the year ended 31 December 20.4. b. Provide the relevant notes to the financial statements of Hans Ltd for the year ended 31 December 20.4 in so far this relates to the investment in associate. a. Your solution must comply with the requirements of International Financial Reporting Standards (IFRS). An accounting policy note is not required. Comparative amounts are not required