Any help or explanation on this excercise would be appreciated

Re-Work this exercise using the tax base concept. *15.8 6,200 The following trial balance extracts relate to Moston as at 30 June 2020: 000 000 Revenue (note 1) 113.500 Cost of sales 88,500 Research and development costs (note 2) 7,800 Distribution costs 3,600 Administrative expenses (note 4) 6.800 Loan stock interest and dividend paid (notes 4 and 7) 5,000 Investment income 300 Ordinary shares of 1 each (note 7) 30,000 5% Loan stock (note 4) 20.000 Retained earnings at 1 July 2019 Revaluation surplus at 1 July 2019 3,000 Other components of equity (note 7) 9.300 Property at valuation 1 July 2019 (note 3) 28,500 Plant and equipment, at cost (note 3) 27.100 Accumulated dep'n plant and equipment at 1 July 2019 9,100 Investments at fair value 1 July 2019 (note 5) 8.800 The following notes are relevant: 1. Revenue includes a 3 million sale (made on 1 January 2020) of maturing goods. The carrying amount of these goods at the date of sale was 2 million. Moston is still in possession of the goods (but they have not been included in inventory) and has an option to repurchase them at any time in the next three years. In three years time the goods are expected to be worth 5 million. The repurchase price will be the original selling price plus interest at 10% per annum from the date of sale to the date of repurchase. 2. Moston commenced a research and development project on 1 January 2020. It spent fl million per month on research until 31 March 2020, at which date the project passed into the development stage. From this date it spent 1.6 million per month until the year end (30 June 2020), at which date development was completed. However, it was not until 1 May 2020 that the directors of Moston were confident that the new product would be a commercial success. Expensed research and development costs should be charged to cost of sales. 3. Moston's property is carried at fair value, which at 30 June 2020 was 29 million. The remaining life of the property at the beginning of the year (1 July 2019) was 15 years. Moston does not make an annual transfer to retained earnings in respect of the revaluation surplus. Ignore deferred tax on the revaluation. 248 CHAPTER 15: Taxation in Financial Statements Plant and equipment is depreciated at 15% per annum using the reducing balance method. No depreciation has yet been charged on any non-current asset for the year ended 30 June 2020. All depreciation is charged to cost of sales. 4. The 5% loan stock was issued on 1 July 2019 at its nominal value of 20 million. Direct issue costs of 500,000 have been charged to administrative expenses. The loan stock will be redeemed after three years at a premium which gives an effective finance cost of 8% per annum. Annual interest was paid on 30 June 2020. 5. The investments (holdings of ordinary shares) had a fair value of 9.6 million at 30 June 2020. There were no acquisitions or disposals of investments during the year. 6. A provision for current tax for the year ended 30 June 2020 of 1.2 million is required, together with an increase to the deferred tax provision to be charged to profit or loss of 800,000 7. Moston paid a dividend of 20p per share on 30 March 2020, which was followed by an issue of 10 million ordinary shares at their market value of 1.70. The share premium on the issue was recorded in other components of equity. Required: Prepare the following financial statements for Moston: (a) a statement of comprehensive income for the year to 30 June 2020 (b) a statement of changes in equity for the year to 30 June 2020. (ACCA)