UBILEE is a quoted company reporting under IFRSs. During the year end $31$ December

$2012,$ the company changed its accounting policy with respect to property valuation. There

are also a number of other issues that need to be finalised before the financial statements can

be published.

JUBILEEs trial balance from the general ledger at $31$ December $2012$ showed the following

balances:

GHm

GHm

Revenue

$2,648$

Loan note interest paid

$3$

Purchases

$1,669$

Distribution costs

$514$

Administrative expenses

$345$

Interim dividend paid

$6$

Inventories at $1$ January $2012$

$444$

Trade receivables

$545$

Trade payables

$434$

Cash and cash equivalents

$28$

$50$Gp ordinary shares

$100$

Capital surplus

$814$

Retained earnings at $1$ January $2012$

$349$

$4\%$ loan note repayable $2018($issued $2010)$

$150$

Land and buildings: Cost $($including GH$60$m land$)$

$380$

Accumulated depreciation at $1/1/2012$

$64$

Plant and equipment: Cost

$258$

Accumulated depreciation at $1/1/2012$

$126$

Investment property at $1$ January $2012$

$548$

Rental income

$48$

Proceeds from sale of equipment

$7$

$,$

$4,740$

$4,740$

Further information to be taken into account:

i$.$ Closing inventories were counted and amounted to GH$388$m at cost$.$ However,

shortly after the year end out$-$of$-$date inventories with a cost of GH$15$m were sold

for GH$8$m$.$

ii$.$ The company decided to change its accounting policy with respect to its $10$ year old

land and buildings from the cost model to the revaluation model. The revalued

amounts at $1$ January $2012$ were GH$800$m $($including GH$100$m for the land$).$

No further revaluation was necessary at $31$ December $2012.$ The company wishes

to treat the revaluation surplus as being realised over the life of the asset.

Due to a change in the companys product portfolio plans, an item of plant with a

carrying value GH$22$m at $31$ December $2012($after adjusting for depreciation for

the year$)$ may be impaired due to a change in use. An impairment test conducted

at $31$ December, revealed its fair value less costs to sell to be GH$16$m$.$ The asset

is now expected to generate an annual net income stream of GH$3\mathrm{.}8$m for the next

$5$ years at which point the asset would be disposed for GH$4\mathrm{.}2$m$.$ an appropriate

discount rate is $8\%.5$ year discount factors at are:

Simple

Cumulative

$0\mathrm{.}677$

$3\mathrm{.}993$

iv$.$ The income tax liability for the year is estimated at GH$27$m$.$ Ignore deferred tax.

v$.$ An interim dividend of $3$Gp per share was paid on $30$ June $2012.$ A final dividend of

$1\mathrm{.}5$Gp per share was declared by the directors on $28$ January $2013.$ No dividends

were paid or declared in $2011.$

vi$.$ During the year, Jubilee disposed of some malfunctioning equipment for GHC$7$m$.$ the

equipment had cost GH$15$m and had accumulated depreciation brought forward

at $1$ January $2012$ of GH$3$m$.$

There were no other additions or disposals to property, plant and equipment

vii. The company treats depreciation on plant and equipment as a cost of sale and land

and buildings as an administration cost. Depreciation rates as per the companys

accounting policy note are as follows:

Buildings

Straight line over $50$ years

Plant and equipment

$20\%$ reducing balance

Jubilees accounting policy is to charge a full years depreciation in the year of an

assets purchase and none in the year of disposal.

viii.

During the year on $1$ July $2012,$ Jubilee made a $1$ for $4$ bonus issue, capitalising its

general reserve. This transaction had not yet been accounted for. The fair value of

the companys shares on the date of the bonus issue was GH$0\mathrm{.}50$ each.

ix$.$ Jubilee uses the fair value model of IAS $40.$ The fair value of the investment property

at $31$ December $2012$ was GH$586$m$.$

Required

Prepare the following financial statements in with IFRSs insofar as the information permits.

a$.$ Statement of comprehensive income for the year ended $31$ December, $2012$

b$.$ Statement of changes in equity for the year ended $31$ December, $2012$

c$.$ Statement of financial position as at $31$ December, $2012$