«+The income tax expense forthe year ended 28 February 20X6 fs C359 220. This expense thas not yet been recorded. Required: 2). Prapare the statement of comprehensive income of St Andrews Limited forthe year ended Fp Eeteusry 2x6 n conformity with ntermaional Financial Reporting Standards and using +) Prepare the statement of changes in equity of St Andon Limited (or the year ended Db Papruary 20x8 n conformity with Intemational Financial Reporting Standards, wallable, prepare the folowing notes tothe financial statements <9) Inso far as information is tary 20X6 in conformity with International Financial Reporting for the year ended 28 Febr Standares «Statement of compliance, 2 Basis of preparation, 2 Profit betore tax, and + Dividends: |gnore comparative. Question 3.9 Nordic Limited isa cornpay that sels a rango of thermal and fleece dlthing to retaierseround Me cain. The company is Hsted on the Johannasburg Stock Exchange. You have been povided wih he erattal balance a 31 March 20X9, together wih some adetionl information “The craft tial balance of Nordic Limited at 31 March 20X8 is as follows: a ene eel WORDIC LMNTED _TRIAL BALANCE AT 31 MARCH 20%9 ‘abit credit Crsinary share capt 11000000, Retainod earings 1480000 Exupment and ities 750.000 Efupment and flings ~ secumated depreciation 150000 ‘esountsroconabe 980.000 Inventory 2200 000 Bank 330 000, Borrowings 900000 ‘ocounts payble see Sales 12100000, Cost of sales 9.600000 Packing expense 300000, Feat anspor cost 252000 ‘Stalonary expense 490000 ‘Sif carton expensee 213000 {tearing expenses 10.000 Depreciation = equipment and tings 75000 Salaries 700 000 Bad deis 10000 Prt ons cf eipmet rf a raft on the sale of equipment and ings 400000 Dirdonds 40 000 15 050.000 esate tence gt ae Se 8S ‘Additional information 1+ The ordinary shate capital consists of 2.000 000 shaves of 0,506 par value. «+The net ealisable value of the inventory atthe reporting date was estimated at C2 080 000, Chapter 3 oSS presentation of financial statements _ GAAP: Graded Questions + Tebronngsopasrt anf C0 apy nee en arta Theta s ue be pod on 20 Seponber 2010, The esr en 9 tt atament 9a Seen odes Nod ited wih ote afar te se fens ad te dreds eae hs epton blo teen fhe caren perig pes fancier + ord Lint dss erores scot ti fon. Te , Caputo te buses nt te aes, ara sls, ston ana senate, : ig ttre +The deen dprinent special wap al tens in a rate wap eae spe. Te goats ae nap by an nepncel od tana ory fb Doritos + The anit depart su salon, poi akeshnents and ae reponse fre sng of heed in, + The depeciion expense is socad ©3900 to dsibten and. C2500 fo inion The salares a lcd ©2000 to Gatn and C#50 000 Siniistaton. The bad Geese detutonexense and te conto an Senintaon pare ‘+The prot cn sale of equipment and ftings relates to equipment used inthe administration funeton, + Theincome tax expense has boon corecty calculated at C180 000. ‘+The dividend of C40 000 shown onthe tal balance represents the nal vidand in respect ‘ofthe year ended 31 March 20X8,deciared on 20 Apr 20XB, A fal cvgend of C50 000, in espect ofthe year ended 31 Match 20X9 was declared on 15 Apri 20X9. No interim. idonds were deca, ‘+ There are no components of other comprehensive income. ‘+The nancial statements have no! yet boon authoisod for issue Required: 4) Prepare the statement of profit or ss of Nori Limited fr te year endod 31 March 0X8 ty wih inernational Financial Reporting Standards. ) Prarie aman of canes tye Nae Lites te yearend 1 March 20XS in conformity with International Financial Reporting Standards, ™ ©) Propare the statement finncial postion of Norse Limited at 31 March 20X9 in conformity wi intematinel Financial Reporting Standards 4 Preparing nls the arisen of No Lied he yer ended ‘31 March 20X9 in conformity with International Financial Reporting Standards: ve ~The stoma compar note “Te ao spporg pot Sleox “Tredidend nt CComperatves ae not requiredGAAP: Graded Questions ‘The Conceptual Framework fr Fina Question 24 The Conceptual Framework is an IFRS and can override any speci IFRS, a) Tue b) Fake b Palace cate indents quatre caacterstes owe fomaton h sezaly the IASB Conceptual Framenork ree 1 ecacnd eesentation of an teevantintermaton neu not help users ay decisions. © goes 2 fo una representaton of evant information would not help users rake decisions, tro 2) 1 isttue and 2s false ) is false and 2s true ©) tend 2 are bath true ) 1 and 2 are both false e ‘According othe IASB. Conceptual Framework detnton of an asset 4. -An asset is considered as a physical object 2 Anassetis considered as a set of igh, 2) tonlyis tue >) Zonlyis tue ©) Yand 2 are both tue 4) 1 and 2 ae both false a. ‘A labilty fs defined in the IASB Conceptual Framework as 8)‘ present obigation arising from a future even, the setlement of which is expected tesa in an outow of future economic benefits from te entity. 2) Apresont obigation ofthe entiy to transfer an economic resource as a resutol past ves ©) A future obligation arising from a past event, the settoment of which is expected lo esi In an outflow of future economic benefits from the entty, 9) A present obligation arsing from a past event, the settlement of which fs expected to esit in aninfow of future economic benefits to the ently. ©} A future cbligation ofthe entty to transfer an ecanomic resource asa result of past evens. e. ‘According to The Conceptual Framework, prudence the exercise of caution when making decisions under conditions of uncertainty ; 2. means that assets and income are not overstated and that lables and expenses ae understated iS 3 doos not alow for the understatement of assets or income ortho overstatement of abil or expenses aay i ae cae | en ener |_GAAP: Graded Questions __The Conceptual Framework for Financial Reporting 12) only is correct b) 1.and2 are correct ©) 1.and 3 are correct 9) 1,2and3 are correct @) 2and 3 are correct ‘Question 2.2