The following below represents the trial balance for Durvans Enterprise Limited a privately traded entity for period ended December 31, 2020:

Durvans Enterprise Limited Trial Balance
		Debit		Credit
Property at cost		500,000,000.00
Accumulated Depreciation: property				24,000,000.00
Plant and Machinery at cost		50,000,000.00
Accumulated Depreciation: Plant and Machinery				20,000,000.00
Motor Vehicle		50,000,000.00
Accumulated Depreciation: M/V				40,000,000.00
Cash and Bank		25,000,000.00
Inventory		45,000,000.00
Trade receivables		60,000,000.00
Trade Payables				16,000,000.00
Deferred tax				40,000,000.00
Admin Expense		120,000,000.00
Selling and Distribution		30,000,000.00
Other Operating Cost		50,000,000.00
Long Term Loans				100,000,000.00
10% redeemable Preference Shares				50,000,000.00
Ordinary Share Capital				50,000,000.00
Retained Earnings				100,000,000.00
Revenues				490,000,000.00
		930,000,000.00		930,000,000.00

The following information below is relevant to the above entity for the period ended December 31, 2020, which are not accounted for as at the end of the year:

Non-Current Assets

Property, plant and equipment are carried in accordance with the cost model. Property includes land and building. Building is depreciated over 50 years on a straight line basis to a nil residual value. Building is 60% of the total property cost. Depreciation on building is to be charged to cost of sales

Plant and machinery is depreciated at a rate of 10% on cost. On September 30, 2020, the company bought a machinery for $20 million on credit from one of its main suppliers, the machinery was paid for on January 10, 2021. Depreciation on plant and machinery is to be charged between admin expense and other operating expense equally. To date, the purchase of the motor vehicle as well as the depreciation expense have not been recognized by management.

All motor vehicles are depreciated over five years on a straight line basis in accordance with the entitys accounting policies. Depreciation on motor vehicle is to be charged to selling and distribution expenses.

Included in other operating expense is a brand bought on January 1, 2020 for $40 million. The brand is amortized over ten years on straight line basis to a nil residual value. Amortization on brand is to be charged to cost of sales.

No depreciation or amortization expense for the current year have been recorded by management.

Financing

The long term loans are not expected to be repaid until 2030. The loans attract at rate of 18% per annum on the current principal. Management has not recorded any interest expense for the current year.

The entity made a one for four rights issue on July 1, 2020 $1.50 each. The market price per share is $2.50. The current par value of each ordinary share is $0.25. To date, the issue of shares were not recorded by management. The entity declared dividends of $0.025 per ordinary share outstanding as at December 31, 2020. The payment date for these dividends is one month after the year end.

Dividends on the 10% redeemable preference share capital was declared on December 31, 2020, but remains unrecorded to date. The payment date is expected to be one full month after the date of declaration.

Taxation

The entity provided for current taxes amounting to $28 million. Accumulated taxable temporary differences as at December 31, 2020 amounted to $60 million. The current income tax rate is 25%.

Research and Development Cost

The entity incurred R&D cots of $75 million of which two-thirds relates to research. On further investigation none of the development costs have reach the stage of technical and commercial feasibility. Any capitalized development costs are generally amortized over a period of 20 years in accordance with the entitys accounting policies. Any un-capitalized R&D costs should be recognized in cost of sales. The total R&D costs were incurred in cash during 2020, but was not accounted for in the books to date.

Required:

1. Prepare the statement of financial position as at December 31, 2020

2. Prepare the statement of profit and loss and comprehensive income with relevant disclosures for period ended December 31, 2020.

3. Prepare the statement of changes in equity for period ended December 31, 2020