The following trial balance relates to Helios Bhd. (Helios), a public listed company, as at 30 September
Question:
The following trial balance relates to Helios Bhd. (Helios), a public listed company, as at 30 September
2021:
Debit Credit
RM'000 RM'000
Ordinary share capital 390,670
Salaries and wages 55,700
Rental income 1,430
Right-of-use asset 11,400
Inventories as at 30 September 2020:
- Raw materials 12,500
- Work-in-progress 22,800
- Finished goods 35,600
Revenue 257,000
Current tax 4,200
Trade receivables / Trade payables 25,800 43,300
8.7% Redeemable preference shares (mature on 4 October 2021) 52,000
Deferred tax 3,200
Long-term loan 25,000
Operating expenses 28,700
Investment property 124,400
Investment in financial assets 15,500
Purchases of raw materials 120,500
Leasehold property at cost 360,600
Plant and equipment at cost 273,000
Accumulated depreciation as at 30 September 2020:
- Leasehold property 187,500
- Plant and equipment 94,200
Retained earnings as at 30 October 2020 33,700
Bank 2,700
1,090,700 1,090,700
2
The following notes are relevant:
1. As at 30 September 2021, the cost of the closing inventories of Helios were as follows:
- Raw materials : RM16.7 million,
- Work-in progress : RM25.2 million,
- Finished goods : RM62.8 million.
As at year end, the net realisable value of the work-in-progress and the finished goods were valued at RM24.6 million and RM58.4 million respectively.
2. On 18 September 2021, Helios’s investment property was valued by a qualified valuer at RM115.8 million. Helios adopts the fair value model in accordance with IAS 40 / MFRS 140 Investment Property to measure its investment property.
3. Helios has revalued its leasehold property on 1 October 2020 to the market price of RM211.5 million. The remaining useful life of the leasehold property was twenty-four years at the date of revaluation. Helios makes an annual transfer to retained earnings to reflect the realisation of the revaluation surplus. Helios has not recorded the revaluation as at 30 September 2021. All plant and equipment are depreciated at 10% per annum using the reducing balance method. The right-of-use asset is depreciated based on the lease term of 7 years. No depreciation/amortisation has yet been charged on any non-current assets for the year ended 30 September 2021. Helios provides a full year’s depreciation in the year of purchase and no depreciation in the year of disposal.
4. The investment in financial assets is measured at fair value through other comprehensive income. As at 30 September 2021, the investment in financial assets has a fair value of RM36.6 million.
5. The balance of current tax in the trial balance represents the under/over provision of the tax liability for the year ended 30 September 2020. A provision of RM8.42 million is required for current tax for the year ended 30 September 2021. The required deferred tax provision as at 30 September 2021 is RM3.28 million. The income tax rate of Helios is 24%.
Required:
Prepare the statement of profit or loss (by nature) for the year ended 30 September 2021 and the statement of financial position as at the same date of Helios Bhd. in accordance with applicable International Financial Reporting Standards.
Financial Accounting and Reporting
ISBN: 978-1292162409
18th edition
Authors: Barry Elliott, Jamie Elliott