The following trial balance relates to HIS GLORY LTD, a quoted company at 31^st December 2007.

	DR			CR
	GH			GH
Land and buildings (1/1/07)	130,000
Plant at cost	128,000
Depreciation of plant (1/1/07)		32,000
Investments	26,500
Cost of sales	89,200
Investment income		2,200
Distribution costs	11,000
Administrative expenses	12,500
Interest on loan paid	800
Inventory 31/12/07	37,900
Current Corporation Tax		400
Trade receivables	35,100
Revenue		180,400
Ordinary shares (issued at GH1 each)		60,000
Retained earnings (1/1/07)		25,500
2% loan (2005 2010)		80,000
Trade payables		34,700
Revaluation surplus arising from land & building		14,000
Deferred tax provision (1/1/07)		11,200
Accruals		24,000
Bank	______		6,600
	471,000	471,000

5

The following notes are relevant:

1. HIS GLORY LTD has a policy of revaluing its land and building at each year end. The valuation in the trial balance includes a land element of GH30,000. The useful life of the buildings at that date (1/1/07) was 20 years. On 31/12/07, a professional valuer valued the buildings at GH92,000 with no change in the value of the land. Depreciation of buildings is charged at 60% to cost of sales and 20% each to distribution costs and administrative expenses.

2. During the year HIS GLORY LTD manufactured an additional plant for its operations. The details of the costs, which have been included in cost of sales in the trial balance, were:

	GH
Material Cost	6,000
Direct labour cost	4,000
Machine time cost	8,000
Directly attributable overheads	6,000

The manufacture of the plant was completed on 30/06/07 and the plant was brought into immediate use, but its cost has not yet been capitalized.

All plants are depreciated at 12% per annum (time apportioned where relevant) using the reducing balance method and charged to cost of sales.

No non-current assets were sold during the year.

3. The fair value of the investments held at 31/12/07 was GH27,100.

4. The balance on taxation in the trial balance represents the over provision of the previous years estimate. The estimated tax liability for the year ended 31/12/07 is

GH18,700.

5. At 31/12/07 there were GH40,000 of taxable temporary differences. Deferred tax provision should accordingly be adjusted to GH10,000 since deferred tax provision is at 25% of all taxable temporary differences.

6. The directors have proposed dividend of GH0.40 per share for 2007. This is to be dealt with in the financial statements in accordance with IAS 10.

Required:

Prepare for HIS GLORY LTD and in accordance with the International Financial Reporting Standards (IFRS),

1. An Income Statement for the year ended 31 December, 2007.
2. A Statement of Financial Position as at 31 December, 2007