You have just joined Betterway Company (B Co.), a public limited company involved in manufacturing Cement and related products and supplying all over the country and across borders. Mark Selby (your senior at work) has asked you to prepare a report that outlines the accounting concepts and accounting standards and assess their relevance in preparing the financial statements of a public limited company like B Co.

The reporting period has just ended and Mark has prepared the trial balance of B Co. for the year ended 31^stDecember, 2020.

THE REPORTING PERIOD HAS JUST ENDED AND MARK HAS PREPARED THE TRIAL BALANCE OF B CO. FOR THE YEAR ENDED 31" DECEMBER, 2020. DESCRIPTION DR ($'000) CR ($'000) LAND AND BUILDINGS (LAND $20M) (NOTE 1) 80,000 ACCUMULATED DEPRECIATION (BUILDING) TILL 15 JANUARY 2020 16,800 PLANT AND EQUIPMENT- COST (NOTE 1) 81,250 ACCUMULATED DEPRECIATION (PLANT AND EQUIPMENT) TILL 1" 29,250 JANUARY 2020 INVENTORY AT 31" DECEMBER 2020 (NOTE 2) 22,740 TRADE RECEIVABLES (NOTE 6) 47,077 CASH AT BANK 8,678 REVENUE 289,000 COST OF SALES 203,500 DISTRIBUTION COST 9,100 ADMINISTRATIVE EXPENSES (NOTE 1, 6 AND 7) 24,700 FINANCE COST (NOTE 3) 1,500 ALLOWANCE FOR DOUBTFUL DEBTS 500 INCOME TAX (NOTE 4) 700 TRADE PAYABLES 22,650 8% LOAN NOTES 25,000 SHARE CAPITAL (PAR VALUE 50 CENTS) 60,000 SHARE PREMIUM 15,000 RETAINED EARNINGS AT 1" JANUARY 2020 (NOTE 5) 19,645 478,545 478,545