35 Marks a feni Limited changed its inventory valuation method from weighted average method to FIFO as this will result in fairer presentation as the matching of revenue and expenses will be improved. . The effect of the change is as follows: Year-end inventory balances

2015 2014 2013 2012

Weighted FIFO method average method (old method) (new method)

NS 15 000 NS 14 000 NS 12 000 NS 10 000 15 000 11 000

The draft financial statements before the change in accounting policy are as follows 18 000 14 000

HAFENI LIMITED

DRAFT STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOM

FOR THE YEAR ENDED 31 DECEMBER 2015

2015 2014 NS NS Revenue 1 200 000 900 000 (420 000) (350 000) 550 000

Cost of sales Gross profit 780 000 Other costs (220 000) (200 000) 560 000 350 000

Profit before tax

(235 200) 324 800

(136 500) 213 500 Income tax expense Profit for the year Other comprehensive income for the year Total omprehensive income for the year 324 800 213 S00

HAFENI LIMITED

DRAFT STATEMENT OF CHANGES IN'EQUITY FOR THE YEAR ENDED 31 DECEMBER 2015.

Retained earnings N$ 67 500 213 500 281 000 324 800

Balance: 1/1/2014 Total comprehensive income: 2014 Balance: 31/12/2014 Total comprehensive income: 2015 Balance 31/12/2015

605 800

REQUIRED Prepare the statement of profit or loss and other comprehensive income, statement of changes in equity, statement of financial position and the relevant ntes of Hafeni Limited for the year ended 31 December 2015 in accordance with International Financial Reporting Standards