4.

Wave Limited is a locally listed company in Bangladesh, and has just prepared its below Profit or Loss
statement-
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2018
Particulars Taka
Revenue 3,000,000
Cost of sales -1,400,000
Gross Profit 1,600,000
Employee benefits -200,000
Sales, marketing and promotion costs -400,000
Depreciation -250,000
Interest expense -50,000
Net profit before tax 700,000
Income tax expense ?
Net profit after tax ?
Other comprehensive income ?
Total comprehensive income ?
Mr. Rahman, the Accounts Manager is confused with below matters-
a) How he should calculate current tax, for the budget just approved in the Parliament has increased tax
rate from 25% to 30%.
b) Actuary valuation for gratuity fund (defined benefit) had reflected below out-comes-

Actuary valuation report of Wave Ltd Taka

Current service cost 75,000
Actuarial loss 50,000
125,000
No provision has been made in the above financial statement considering the report was available on 15
July 2018, after the books were closed. The fund could not be transferred to the NBR approved gratuity
fund. Last year, the company had provided Tk.100,000 for gratuity (current service), for which fund
was transferred this year. In earlier assessment years, tax office had allowed gratuity expenses based on
actual fund transfer to trustee board.
c) Written down value for the only depreciable asset is Tk.300,000 and tax WDV is Tk.400,000. Current
year tax depreciation allowance (for tax purpose) is Tk.200,000.
Required:
Assist the Chairman of the company to complete the statement of profit or loss and other comprehensive
income. 15

5. Canada Ltd has investments in two companies, Toronto Ltd and Calgary Ltd. The draft, summarized
statement of financial position of the three companies at 31 December 2018 are shown below.
Canada Toronto Calgary
ASSETS Tk '000 Tk '000 Tk '000
Non-current assets
Property, plant and equipment 18,750 15,000 6,250
Investment in Toronto Ltd 16,250 - -
Intangibles 250 300 -
Other investment 2,500 1,000 850
Total non-current assets 37,750 16,300 7,100
Current assets
Inventories 2,500 1,250 500
Accounts and other receivables 2,750 1,125 475
Advance, deposits and prepayments 3,450 1,150 300

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