The following is the final balance of the company's assets, liabilities and equity accounts for the current financial year.

RM

Intangible assets 7,879,962

Unpaid 91,750,738

Received 173,135,316

Outstanding tax 3,464,044

Real estate investment 8,164,402

Short-term deposits 342,079,060

Unpaid dividends 26,355,040

Property, plant and equipment 186,955,636

Payment 245,038

Inventory 34,905,292

Deferred tax liability 25,990,946

Retained earnings 316,513,518

Revaluation reserve (initial balance) 3,188,650

The fair value reserves of investment securities (initial balance) 4,782,986

Equity shares 356,347,090

Investment in equity securities 58,178,122

Cash and banks 16,850,184

Additional information:

1. Your company is included in the manufacturing sector. Details about your company.

2. Receivables include trade receivables and receivables from contract customers.

3. Payment consists of non-payment to contract customers and trade payables. The entire amount is expected to be settled within one operating cycle.

4. Equity securities investments are held not for trading purposes. Profit from increased fair value of investment for the current period amounted to RM2,895,948.

5. The company invests in debt securities during the current period.

6. There are two (2) additions and three (3) disposals of property, plant and equipment during the current accounting period. One of the additional assets is self-built assets financed through bank loans of 80%. The loan interest rate is 8% while the expected return rate of the company is 10%.

7. There are also properties, plants and equipment that suffer from impairment.

8. Intangible assets consist of assets of limited and unlimited use. The Company also acquired new intangible assets with limited useful lives.

9. The final inventory balance is based on measurement at cost. At the end of the current accounting period, the net realizable value of the finished goods is 1.5% lower than the cost. The company uses the cost of goods sold to record the devaluation of inventory.

Required:

a) For additional information (2) to (9), you are required to set up your own transaction.

b) Referring to the requirements of MFRS 101 Presentation of Financial Statement, prepare

i. Statement of Profit or Loss and Other comprehensive Income

ii. Statement of financial position

iii. Notes to the account

Answer rating: 100% (QA)

Answer a 2 The year end trade receivables is equal to RM41750738 while the receivable from contract customers is equals to RM50000000 3 Trade payables amounting to RM245038 remained unpaid at yearend ... View the full answer