The Prestige Bank Limited has presented the following trial balance for the 2019 financial year: Interest income Interest on customers deposits Commission and fee income Dividends from investments Profit on foreign exchange transaction Operating expenses Staff costs Directors Remuneration Rental income from investment property Motor vehicles/Accumulated depreciation Equipment & Furniture/accumulated depreciation Computers/Accumulate depreciation Land and buildings/Accumulated depreciation Corporate tax Investment property Sundry payables Amounts due to other banks Customers Current accounts Customers Savings accounts Fixed/time deposits of customers Interim dividend paid Loan, advances and overdraft granted Loan impairment provision 01/01/2019 Stated Capital Retained profit, 01/01/2019 Statutory reserves, 01/01/2019 Revaluation surplus Trade investments Government Treasury bills Deposits with other banks Cash in hand Balance with Bank of Ghana Additional information: Debit GHS000 10,545 3,033 6,639 117 981 1,764 1,170 2,328 540 2,940 413 28,000 4,029 58,779 38,382 4,887 13,998 178,545 Credit GHS000 23,259 4,164 165 423 300 546 489 399 249 1,785 11,613 67,905 23,457 10,746 1,842 14,469 3,438 11,964 1,332 _____ 178,545 i) Prestige Limited has been sued for the following two alleged infringements of law: (1) Unauthorized use of a brand; the claim is for GHS 50,000 (2) Non-payment of end-of-service severance pay and gratuity to 7 employees whose appointments were terminated without Prestige giving any reason; the class action lawsuit is claiming GHS 150,000. 1

Legal counsel of the bank is of the opinion that not all the legal cases are tenable in law and has communicated to Prestige. This assessment of the two lawsuits are: Lawsuit 1: The chances of this lawsuit are remote. Lawsuit 2: It is probable that Prestige would have to pay the displaced employees, but the best estimate of the amount that would be payable if the plaintiff succeeds against the entity is GHS 100,000. ii) Provide for depreciation at the following rates: Land and buildings 5% on cost. Equipment and furniture 20% on cost. Computers 20% on cost. Motor vehicles 20% on cost. iii) Provide for Audit fees of GHS180,000. iv) The bank has advanced GHS2,553,000 loan to a customer. The customer is currently suffering from Corona virus and it has been established by the doctors that it is virtually certain the customer will die. v) In compliance with the Banking Act 12.5% of profit after tax is to be transferred to statutory reserve. vi) Interim tax for 2019 based on self-assessment was settled at GHS540,000. Corporate tax applicable to the bank is 25%. vii) The investment property was acquired in February, 2019. The directors have adopted fair valuation model of accounting for investment properties in line with IAS 40. At 31st December, 2019, it was fair valued at GHS4,000,000. viii) On 31st December, the Directors of the bank further declared dividend of GHS2 per share. On that same date, the directors agreed to pay end-of-year bonus to staff estimated at GHS216,000. This is yet to be paid. This should be accounted for as an operating expense. Required: Prepare the following financial statements of Prestige Bank Limited for publication in accordance with relevant legislations and International Financial Reporting Standards (IFRS): a) The statement of profit or loss and other comprehensive income for the year ended 31st December, 2019. b) The statement of changes in equity for the year ended 31st December, 2019. c) The statement of financial position as at 31st December, 2019. d) Show clearly all relevant workings.