Cortex is a manufacturer of high-end, specialized electronic components used in various industries, such as aerospace,...

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Cortex is a manufacturer of high-end, specialized electronic components used in various industries, such as aerospace, medical devices, and telecommunications. Cortex' trial balance at 30 September 2023 is shown below: 5% Loan notes (issued 2020, redeemable 2030) (viii) Administrative expenses Cash and cash equivalents Cost of sales Distribution costs Equity dividend paid 1 February 2023 Income tax Inventory at 30 September 2023 Land Buildings at cost at 1 October 2022 Loan interest paid Equity shares $1 each, fully paid at 1 October 2022 Ordinary shares repurchased Revaluation reserve Plant and equipment at cost at 1 October 2022 Provision for buildings depreciation at 1 October 2022 Provision for plant and equipment depreciation at 1 October 2022 Retained earnings at 1 October 2022 Sales revenue Share premium Trade payables Trade receivables € € (i) AC200(FA) Accounting Theory and Practice 2023/24 (vii) (iv) (iii) (v) (ix) $000 779 184 4,080 650 335 24 1,055 3,200 2,180 37 135 4,520 2,308 19,487 $000 1,480 5,650 200 262 2,260 1,990 6,780 565 300 19,487 (i) The land is not depreciable and is carried at valuation. On 25 September 2023, the fair value of the land was determined to be $3,250,000. (ii) The income tax balance in the trial balance is a result of the under provision for the year ended 30 September 2022. The tax due for the year ended 30 September 2023 is estimated at $160,000. (iii) Depreciation is charged on buildings using the straight-line method at 3% per annum. Buildings depreciation is treated as an administrative expense. (iv) During the year Cortex disposed of old equipment for $23,000. The original cost of the equipment sold was $57,000 and its book value at 30 September 2022 was $6,000. All entries for this disposal have been omitted from the books, including the receipt of the disposal proceeds. (v) Plant and equipment is depreciated at 20% per annum using the reducing balance method. Depreciation of plant and equipment is considered to be part of cost of sales. Cortex' policy is to charge a full year's depreciation in the year of acquisition and no depreciation in the year of disposal. (vi) During the year Cortex paid a dividend of $335,000 for the year ended 30 September 2022. (vii) Cortex purchased and cancelled 100,000 of its own equity shares on 30 September 2023 for $135,000. These shares had originally been issued at a 10% premium. (viii) Long term borrowings consist of loan notes issued on 1 April 2020 at 5% interest per annum. (ix) On 22 October 2023 Cortex discovered that ZYU, one of its customers, had gone into liquidation. Cortex has been informed that it will receive none of the outstanding balance of $230,000 at 30 September 2023. REQUIRED: Prepare Cortex's statement of comprehensive income and statement of changes in equity for the year to 30 September 2023 AND the statement of financial position at that date, in accordance with the requirements of International Financial Reporting Standards. 2 Cortex is a manufacturer of high-end, specialized electronic components used in various industries, such as aerospace, medical devices, and telecommunications. Cortex' trial balance at 30 September 2023 is shown below: 5% Loan notes (issued 2020, redeemable 2030) (viii) Administrative expenses Cash and cash equivalents Cost of sales Distribution costs Equity dividend paid 1 February 2023 Income tax Inventory at 30 September 2023 Land Buildings at cost at 1 October 2022 Loan interest paid Equity shares $1 each, fully paid at 1 October 2022 Ordinary shares repurchased Revaluation reserve Plant and equipment at cost at 1 October 2022 Provision for buildings depreciation at 1 October 2022 Provision for plant and equipment depreciation at 1 October 2022 Retained earnings at 1 October 2022 Sales revenue Share premium Trade payables Trade receivables € € (i) AC200(FA) Accounting Theory and Practice 2023/24 (vii) (iv) (iii) (v) (ix) $000 779 184 4,080 650 335 24 1,055 3,200 2,180 37 135 4,520 2,308 19,487 $000 1,480 5,650 200 262 2,260 1,990 6,780 565 300 19,487 (i) The land is not depreciable and is carried at valuation. On 25 September 2023, the fair value of the land was determined to be $3,250,000. (ii) The income tax balance in the trial balance is a result of the under provision for the year ended 30 September 2022. The tax due for the year ended 30 September 2023 is estimated at $160,000. (iii) Depreciation is charged on buildings using the straight-line method at 3% per annum. Buildings depreciation is treated as an administrative expense. (iv) During the year Cortex disposed of old equipment for $23,000. The original cost of the equipment sold was $57,000 and its book value at 30 September 2022 was $6,000. All entries for this disposal have been omitted from the books, including the receipt of the disposal proceeds. (v) Plant and equipment is depreciated at 20% per annum using the reducing balance method. Depreciation of plant and equipment is considered to be part of cost of sales. Cortex' policy is to charge a full year's depreciation in the year of acquisition and no depreciation in the year of disposal. (vi) During the year Cortex paid a dividend of $335,000 for the year ended 30 September 2022. (vii) Cortex purchased and cancelled 100,000 of its own equity shares on 30 September 2023 for $135,000. These shares had originally been issued at a 10% premium. (viii) Long term borrowings consist of loan notes issued on 1 April 2020 at 5% interest per annum. (ix) On 22 October 2023 Cortex discovered that ZYU, one of its customers, had gone into liquidation. Cortex has been informed that it will receive none of the outstanding balance of $230,000 at 30 September 2023. REQUIRED: Prepare Cortex's statement of comprehensive income and statement of changes in equity for the year to 30 September 2023 AND the statement of financial position at that date, in accordance with the requirements of International Financial Reporting Standards. 2