vi) Non-current assets: The freehold property has a land element of GH13,000. The building element is...

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vi) Non-current assets: The freehold property has a land element of GH13,000. The building element is being depreciated on a straight-line basis. Klean revalues its buildings at the end of each accounting year. At 3D October, 2018 the relevant value to be incorporated into the financial statements is GH35,900. useful. of the property The building's remaining life at the beginning of the current year (1 October, 2017) was 25 years. Klean does not make an annual transfer from the revaluation reserve to retained earnings in respect of the realisation of the revaluation surplus. Ignore deferred tax on the revaluation surplus. Plant and equipment is depreciated at 40% per annum using the reducing balance method. Klean Ltd's brand in the trial balance relates to a product line that received bad publicity during the year which led to falling sales revenues. An impairment review was conducted on 30 September 2018 which concluded that, based on estimated future sales, the brand had a value in use of GH12,000 and a remaining life of only three years. However, on the same date as the impairment review, Klean Ltd received an offer to purchase the brand for GH15,000. Prior to the impairment review, it was being depreciated using the straight-line method over a 10 year life. No depreciation/amortisation has yet been charged on any non-current asset for the year ended 30 September 2018. Depreciation, amortisation and impairment charges are all charged to cost of sales. Required: Prepare the following financial statements of Klean Ltd for publication in accordance with International Financial Reporting Standards (IFRS): a) Statement of profit or loss and other comprehensive income for Klean Ltd for the year ended 30 September 2018; b) Statement of changes in equity for the year ended 30 September 2018; and c) Statement of financial position as at 30 September 2018. d) Show clearly all relevant workings. (Note: Accounting policy notes are not required) (20 marks) vi) Non-current assets: The freehold property has a land element of GH13,000. The building element is being depreciated on a straight-line basis. Klean revalues its buildings at the end of each accounting year. At 3D October, 2018 the relevant value to be incorporated into the financial statements is GH35,900. useful. of the property The building's remaining life at the beginning of the current year (1 October, 2017) was 25 years. Klean does not make an annual transfer from the revaluation reserve to retained earnings in respect of the realisation of the revaluation surplus. Ignore deferred tax on the revaluation surplus. Plant and equipment is depreciated at 40% per annum using the reducing balance method. Klean Ltd's brand in the trial balance relates to a product line that received bad publicity during the year which led to falling sales revenues. An impairment review was conducted on 30 September 2018 which concluded that, based on estimated future sales, the brand had a value in use of GH12,000 and a remaining life of only three years. However, on the same date as the impairment review, Klean Ltd received an offer to purchase the brand for GH15,000. Prior to the impairment review, it was being depreciated using the straight-line method over a 10 year life. No depreciation/amortisation has yet been charged on any non-current asset for the year ended 30 September 2018. Depreciation, amortisation and impairment charges are all charged to cost of sales. Required: Prepare the following financial statements of Klean Ltd for publication in accordance with International Financial Reporting Standards (IFRS): a) Statement of profit or loss and other comprehensive income for Klean Ltd for the year ended 30 September 2018; b) Statement of changes in equity for the year ended 30 September 2018; and c) Statement of financial position as at 30 September 2018. d) Show clearly all relevant workings. (Note: Accounting policy notes are not required) (20 marks)