You have been provided the following two statements, Statement of Financial Position (SOFP), Statement of Comprehensive Income

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Question:

You have been provided the following two statements, Statement of Financial Position (SOFP), Statement of Comprehensive Income (SOCI) and some additional information of MRL for the year ended 31 December 2022 that have been prepared by a temporary accounting assistant, Leo.

Morgan Retailers Ltd (MRL)
for the year ended 31 December 2022
Statement of Financial Position

As at 31 December 2022($000) 2021 ($000)
Assets
Inventory 74,675 70,932
Property, Plant & Equipment (Net) 98,547 90,900
Trade and other receivables 45,065 32,845
Cash and cash equivalents 12,658 14,394
Investments (long term) 2,765 2,765
Other current assets 2,386 1,560
Total assets 236,096 213,396
Liabilities
Trade and other payables 79,750 59,540
Long-term loan (Payable in 2026) 15,400 13,980
Taxation Payable - 3,100
Provisions 10,800 6,893
Total liabilities 105,950 83,513
Net assets 130,146 129,883
Shareholders' equity
Contributed Equity 90,600 70,600
Reserves 4,400 1,900
Retained earnings 35,146 57,383
Total shareholders' equity 130,146 129,883

Morgan Retailers Ltd (MRL)
Income statement
for the year ended 31 December 2022 2022 ($000) 2021 ($000

Retail Sales 302,400 258,450
Cost of Goods Sold 149,675 129,900
Gross profit 152,725 128,550
Other Income
Interest Income 11,456 9,350
Gain on revaluation of Land (net of tax ) 2,500 -
Revenue from Discontinued operations 40,000 -
Less: Expenses
Administration Expenses 86,000 73,300
Selling and Distribution Expenses 16,000 13,346
Other General expenses 33,650 27,910
Interest expenses 9,200 7,800
Expenses for Discontinued operations 32,500 -
Loss on revaluation of Land (net of tax) - 1,900
Total operating expenses 177,350 124,256
Profit before tax 29,331 13,644

Additional information:
1) Income tax expenses have been included under other general expenses for the two years.
The tax expenses for 2022 and 2021 were $15,650,000 and $11,435,000 respectively.
2) Income tax payable as of 31 December 2022 has been included under Provisions and the
amount was $2,950,000

Required:
(a) Identify the NZ IAS 1 principles that Leo has violated in preparing the Statement of Financial Position and Statement of Comprehensive Income of MRL and explain how each violation can be rectified and presented correctly in these financial statements to meet NZ IAS 1 requirements

(b) Prepare the Statement of Financial Position (SOFP) and the Statement of Comprehensive Income (SOCI) for year ended 31 December 2022 in line with NZ IAS 1