The following is the trial balance of Akwaaba Limited, a trading company, as at 31st December, 2016: Debit GH¢’000 Credit GH¢’000 500,000 Ordinary shares 14,500 8% Loan notes (2012 – 2017) 2,500 10% Preference shares (redeemable) 3,000 Revaluation surplus 800 General reserve 1,500 Retained earnings – 1/1/2016 3,600 Administration expenses 8,540 Selling & distribution expenses 5,600 Sales 68,865 Inventory - 31/12/2016 3,150 Cost of sales 35,500 Loan Note interest paid 195 Investment income 360 Leasehold building at valuation-1/1/2016 14,000 Plant and equipment– cost/depreciation 13,750 3,200 Computer equipment– cost/depreciation 7,200 2,000 Motor vehicles – cost/depreciation 1,500 400 Investment property 8,700 Trade receivables 9,200 Bank 910 Trade payables 3,400 Deferred tax – 1/1/2016 2,300 107,335 107,335 Additional information: Non-current assets: Depreciation of Property, plant and equipment is to be provided on the following bases: Plant and equipment 10%on cost Computer equipment 25%on cost Motor vehicles 20%on reducing balance Nodepreciationhasyetbeenchargedonanynon-currentassetfortheyearended31st December, 2016. Akwaaba revalue its buildings at the end of each accounting yea At 31st December, 2016 the relevant value to be incorporated into the financial statements is GH¢28,200,000. The building’s remaining life at the beginning of the current year (1stJanuary 2016) was 25 yea Akwaaba does not make an annual transfer from the revaluation reserve to retained earnings in respect of the realisation of the revaluation surplus. Ignore deferred tax on the revaluation surplus. The company paid ordinary dividends of GH¢4.8 per share 30th October, 2016. The dividend payments are included in administrative expenses in the trial balance. On 4th November, 2016 the company made a bonus issue from retained earnings of one new share for every four shares in issue at GH¢10.00 eac This transaction is yet to be recorded in the books. Provision is to be made for a full year’s interest on the Loan notes. The investment property held at 31st December, 2016 had a fair value of GH¢9,700,000. There were no acquisitions or disposals of these investments during the yea In June, 2016, Akwaaba’s internal audit unit discovered a fraud committed by the company’s credit manager who did not return from a foreign business trip. The outcome of the fraud is that GH¢1,000,000 of the company’s trade receivables have been stolen by the credit manager and are not recovera Of this amount, GH¢400,000 relates to the year ended 31st December, 2015 and the remainder to the current year. Akwaaba is not insured against this fraud. CorporateincometaxpayableestimatedontheprofitfortheyearisGH¢7,000,000. Required: Prepare the following financial statements of Akwaaba Limited for publication in accordance with International Financial Reporting Standards (IFRS): Statement of comprehensive income for the year ended 31st December, 2016; Statement of changes in equity for the year ended31st December, 2016; and Statement of financial position as at31st December, 2016

The following is the trial balance of Akwaaba Limited, a trading company, as at 31st December, 2016: Debit GH¢’000 Credit GH¢’000 500,000 Ordinary shares 14,500 8% Loan notes (2012 – 2017) 2,500 10% Preference shares (redeemable) 3,000 Revaluation surplus 800 General reserve 1,500 Retained earnings – 1/1/2016 3,600 Administration expenses 8,540 Selling & distribution expenses 5,600 Sales 68,865 Inventory - 31/12/2016 3,150 Cost of sales 35,500 Loan Note interest paid 195 Investment income 360 Leasehold building at valuation-1/1/2016 14,000 Plant and equipment– cost/depreciation 13,750 3,200 Computer equipment– cost/depreciation 7,200 2,000 Motor vehicles – cost/depreciation 1,500 400 Investment property 8,700 Trade receivables 9,200 Bank 910 Trade payables 3,400 Deferred tax – 1/1/2016 2,300 107,335 107,335 Additional information: Non-current assets: Depreciation of Property, plant and equipment is to be provided on the following bases: Plant and equipment 10%on cost Computer equipment 25%on cost Motor vehicles 20%on reducing balance Nodepreciationhasyetbeenchargedonanynon-currentassetfortheyearended31st December, 2016. Akwaaba revalue its buildings at the end of each accounting yea At 31st December, 2016 the relevant value to be incorporated into the financial statements is GH¢28,200,000. The building’s remaining life at the beginning of the current year (1stJanuary 2016) was 25 yea Akwaaba does not make an annual transfer from the revaluation reserve to retained earnings in respect of the realisation of the revaluation surplus. Ignore deferred tax on the revaluation surplus. The company paid ordinary dividends of GH¢4.8 per share 30th October, 2016. The dividend payments are included in administrative expenses in the trial balance. On 4th November, 2016 the company made a bonus issue from retained earnings of one new share for every four shares in issue at GH¢10.00 eac This transaction is yet to be recorded in the books. Provision is to be made for a full year’s interest on the Loan notes. The investment property held at 31st December, 2016 had a fair value of GH¢9,700,000. There were no acquisitions or disposals of these investments during the yea In June, 2016, Akwaaba’s internal audit unit discovered a fraud committed by the company’s credit manager who did not return from a foreign business trip. The outcome of the fraud is that GH¢1,000,000 of the company’s trade receivables have been stolen by the credit manager and are not recovera Of this amount, GH¢400,000 relates to the year ended 31st December, 2015 and the remainder to the current year. Akwaaba is not insured against this fraud. CorporateincometaxpayableestimatedontheprofitfortheyearisGH¢7,000,000. Required: Prepare the following financial statements of Akwaaba Limited for publication in accordance with International Financial Reporting Standards (IFRS): Statement of comprehensive income for the year ended 31st December, 2016; Statement of changes in equity for the year ended31st December, 2016; and Statement of financial position as at31st December, 2016

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Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Assignment 1

The following is the trial balance of Akwaaba Limited, a trading company, as at 31^st December, 2016:

	Debit GH¢’000	Credit GH¢’000
500,000 Ordinary shares		14,500
8% Loan notes (2012 – 2017)		2,500
10% Preference shares (redeemable)		3,000
Revaluation surplus		800
General reserve		1,500
Retained earnings – 1/1/2016		3,600
Administration expenses	8,540
Selling & distribution expenses	5,600
Sales		68,865
Inventory - 31/12/2016	3,150
Cost of sales	35,500
Loan Note interest paid	195
Investment income		360
Leasehold building at valuation-1/1/2016	14,000
Plant and equipment– cost/depreciation	13,750	3,200
Computer equipment– cost/depreciation	7,200	2,000
Motor vehicles – cost/depreciation	1,500	400
Investment property	8,700
Trade receivables	9,200
Bank		910
Trade payables		3,400
Deferred tax – 1/1/2016		2,300
	107,335	107,335

Additional information:

Non-current assets:

Depreciation of Property, plant and equipment is to be provided on the following bases:

Plant and equipment 10%on cost

Computer equipment 25%on cost

Motor vehicles 20%on reducing balance

Nodepreciationhasyetbeenchargedonanynon-currentassetfortheyearended31^st December, 2016.
Akwaaba revalue its buildings at the end of each accounting yea At 31^st December, 2016 the relevant value to be incorporated into the financial statements is GH¢28,200,000.
The building’s remaining life at the beginning of the current year (1^stJanuary 2016) was 25 yea Akwaaba does not make an annual transfer from the revaluation reserve to retained earnings in respect of the realisation of the revaluation surplus. Ignore deferred tax on the revaluation surplus.

The company paid ordinary dividends of GH¢4.8 per share 30^thOctober, 2016. The dividend payments are included in administrative expenses in the trial balance.

On 4^thNovember, 2016 the company made a bonus issue from retained earnings of one new share for every four shares in issue at GH¢10.00 eac This transaction is yet to be recorded in the books.

Provision is to be made for a full year’s interest on the Loan notes.

The investment property held at 31^st December, 2016 had a fair value of GH¢9,700,000. There were no acquisitions or disposals of these investments during the yea
In June, 2016, Akwaaba’s internal audit unit discovered a fraud committed by the company’s credit manager who did not return from a foreign business trip. The outcome of the fraud is that GH¢1,000,000 of the company’s trade receivables have been stolen by the credit manager and are not recovera Of this amount, GH¢400,000 relates to the year ended 31^st December, 2015 and the remainder to the current year. Akwaaba is not insured against this fraud.

CorporateincometaxpayableestimatedontheprofitfortheyearisGH¢7,000,000.

Required:

Prepare the following financial statements of Akwaaba Limited for publication in accordance with International Financial Reporting Standards (IFRS):

Statement of comprehensive income for the year ended 31^stDecember, 2016;
Statement of changes in equity for the year ended31^stDecember, 2016; and

Statement of financial position as at31^stDecember, 2016.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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