Topaz Ltd makes up its financial statements regularly to 31 December each year. The company has operated for some years with four divisions; A, B, C and D, but on 30 June 20X1 Division B was sold for £8m, realizing a profit of £2.5m. During 20X1 there was a fundamental reorganization of Division C, the costs of which were £1.8m.

The trial balance of the company at 31 December 20X1 included the following balances:

A final dividend of £4m is proposed.
The balance on the revaluation reserve relates to the company's freehold property and arose as follows:
Balance at 1 Jan 20X1..........................6
Revaluation during 20X1......................4
Balance at 31 Dec X1 per trial balance.....10
Required
a. Prepare the statement of comprehensive income of Topaz Ltd for the year ended 31 December 20X1, complying as far as possible with the provisions of the Companies Act 2006 and IAS 1 - Presentation of Financial Statements.
b. Explain why the disclosures in the statement of comprehensive income required by IFRS 5 and IAS 1 improve the quality of information available to users of the financial statements.

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Division B Divis ions A, C and D combined Debit Credit D Credit Em Em Sales revenue Costs of sales Distribution costs (including a bad debt of £1.9m-Division D) Administrative expenses Profit on sale of Division B Reorgorization costs, Division C Interest on £10m (10% debenture stock) issued in 20w5 Taxation Interim dividend paid Revaluation reserve 13 68 8 41 2.5 1.8 4,8 10