The following balances existed in the accounting records of Koppa Ltd. at 31 December 20X2:

_____________________________________________________________£'000

Development costs capitalized, 1 January 20X2....................................180

Freehold lord as revalued 31 December 20X2....................................2,200

Buildings cost...........................................................................900

- aggregate depreciation at 1 January 20X2.........................................100

Office equipment - cost...............................................................260

- aggregate depreciation at 1 January 20X2..........................................60

Motor vehicles - cost..................................................................200

- aggregate depredation at 1 January 20X2..........................................90

Trade receivables.....................................................................1,360

Cash of bank..............................................................................90

Trade payables...........................................................................820

12% debentures (issued 20W5 and redeemable 20X2)..........................1,000

equity shores of 50p cash.............................................................1,000

Share premium account.................................................................500

Revaluation reserve.....................................................................200

Retained earnings I January 20X2...................................................1272

Soles revenue...........................................................................8650

Purchases...............................................................................5010

Research and development expenditure for the year..............................162

Inventories 1 January 20X2...........................................................990

Distribution costs.......................................................................460

Administrative expenses.............................................................1560

Debenture interest......................................................................120

Interim dividend paid..................................................................200

In preparing the company's statement of comprehensive income and statement of financial position at 31 December 20X2 the following further information is relevant:

1. Inventory at 31 December 20X2 was £880,000.

2. Depreciation is to be provided for as follows:

Land Nil

Buildings 2 per cent per annum on cost

Office equipment 20 per cent per annum, reducing balance basis

Motor vehicles 25 per cent per annum on cost

Depreciation on buildings and office equipment is all charged to administrative expenses. Depreciation on motor vehicles is to be split equally between distribution costs and administrative expenses.

3. The £180,000 total for development costs as at 1 January 20X2 relates to two projects:

4. The research and development expenditure for the year is made up of:

5. The freehold land had originally cost £2,000,000 and was revalued on 31

December 20X2.

6. Prepayments and accruals at 31 December 20X2 were:

7. The share premium account balance arose as a result of the issue during 20X2 of 1,000,000 50p equity shares at £1 each. All shares qualify for the proposed final dividend to be provided for (see note below).

8. A final dividend of 20p per share is proposed.

Required

Prepare the company's statement of comprehensive income, a statement of changes in equity for the year ended 31 December 20X2, and statement of financial position as at that date, in a form suitable for publication as far as the information provided permits. No notes are required. Ignore taxation.