QUESTION 1

Tamar Bhd, a public limited company incorporated in Malaysia has an authorized

capital of 30,000,000 ordinary shares of N$1 each. The following balances were
extracted from the books of the company as at 31 December 2013. The financial
statements are expected to be authorized for issue on 15 February 2014.

Debit Credit
N$ N$
Ordinary share capital 15,000,000
Retained earnings as at 1 January 2013 3,343,750
Share premium 6,900,000
Land revaluation reserve 570,000
Sales revenue 36,096,650
Cost of sales 5,120,000
Administrative expenses 2,680,500
Distribution expenses 3,200,000
Interest on bank loan 100,000
Ordinary dividend paid 450,000
Freehold land at valuation as at 1 January 2013 5,200,000
Building at valuation as at 1 January 2013 20,000,000
Plant and machinery at cost as at 1 January 2013 13,300,000
Motor vehicles at cost as at 1 January 2013 2,100,000
Accumulated depreciation as at 1 January2013:
Building 1,500,000
Plant and machinery 1,330,000
Motor vehicles 420,000
Investment property 2,000,000
Biological asset 1,100,000
10% bank loan 2,000,000
Tax payable as at 1 January 2013 250,000
Income tax paid 1,350,000
Development expenditure at cost 5,500,000
Inventory 1,350,000
Trade receivables 2,950,000
Trade payables 2,030,100
Cash at bank 3,040,000
69,440,500 69,440,500

Additional information:

1. On 1 January 2013, land and buildings were revalued at N$4,650,000

and N$ 20,300,500 respectively. These have not been recorded in the
books. The revaluation reserve in the trial balance relates to the surplus
on the same land which was revalued previously. The building had an
estimated remaining useful life of 10 years at the date of the revaluation.
It is the policy of the company to provide depreciation on property, plant and
equipment as follows:
Building straight-line method on yearly basis
Plant and machinery 10% on straight-line method
Motor vehicle 10% on reducing balance method
2. In July 2013, Tamar Bhd received a letter from Shah & Co, demanding N$
160,000 compensations for a client over a motor vehicle accident. In September
2013, Tamar Bhd sought legal advice and there was a probability of losing the case
since the accident was purely the fault of the company.
3.On 5 January 2014, Tamar Bhd discovered fraudulent transactions by an ex-
employee. Cash receipts from customers totalling N$ 570,000 had been divested by
the employee since 2011. One-half was stolen in the current year while the
remaining was stolen during the previous year.
4.On 10 January 2014, a portion of the ground floor of the company’s building was
damaged due to fire. The loss was estimated to be N$ 120,000.
5.The tax expense estimated for the current year was N$ 910,000.

Required:
Prepare the following statements in accordance with MFRS 101 Presentation of Financial
Statements and other relevant Malaysian Financial Reporting Standards:
(i) Statement of Profit or Loss and other Comprehensive Income for the year ended
31 December 2013. (7 marks)
(ii) Statement of Changes in Equity for the year ended 31 December 2013. (4 marks)
(iii) Statement of Financial Position as at 31 December 2013. (9 marks)
(iv) A note on property, plant and equipment. (8 marks)