ROYAL COLLEGE

Department: BM

GROUP ASSIGNMENT

Allowed weight 30%

Submitted date 15/01/2023

Instruction: Show the necessary steps for all questions

PART 1

1. Wright the deference between continuing operations and Discontinued operations with example
2. Discus briefly the Accounting Changes and Errors
3. Discus briefly other Comprehensive Income with example
4. Identify the major classifications of the statement of financial position.
5. Identify the content of the statement of cash flows.

PART 2 STATEMENT OF FINANCIAL POSATION

XYZ Company – Statement of financial position as at 31 December 2022

(in thousands of currency units)

31 Dec 2022

ASSETS

Non-current assets

Property, plant and equipment 350,700

Goodwill ----------

Other intangible assets 227,470

Investments in associates 100,150

Investments in equity instruments -------------?

Total Non-current assets ---------?

Current assets

Inventories 135,230

Trade receivables 91,600

Other current assets 25,650

Cash and cash equivalents 312,400

Total Current assets ---------?

Total assets 1,466,500

XYZ Company – Statement of financial position as at 31 December 2022

(in thousands of currency units)

EQUITY AND LIABILITIES

Equity attributable to owners of the parent

Share capital 650,000

Retained earnings ---------?

Other components of equity 10,200

Non-controlling interests 70,050

Total equity -------?

Non-current liabilities

Long-term borrowings 120,000

Deferred tax 28,800

Long-term provisions 28,850

Total non-current liabilities ----------?

Current liabilities

Trade and other payables 115,100

Short-term borrowings 150,000

Current portion of long-term borrowings 10,000

Current tax payable 35,000

Short-term provisions 5,000

Total current liabilities -------------?

Total liabilities -----------?

Total equity and liabilities -------------?

Additional information:

1. Good will is 35.521% of Other intangible assets

2. At 31, December 2021 the ending balance of Retained earnings is 120,000,
3. Current year net income is 43,500
4. Additional investment during the year (2022) is 80,000

PART 3 INCOME STATEMENTS AND OTHER COMPRANSIVE INCOME

illustrating the presentation of profit or loss and other comprehensive income in one statement and the classification of
expenses within profit or loss by function)

(in thousands of currency units)

31 Dec 2021

Revenue 390,000

Cost of sales ---------?

Gross profit ---------?

Other income 20,667

Distribution costs ( 9,000)

Administrative expenses ( 20,000)

Other expenses ( 2,100)

Finance costs ( 15,000)

Share of profit of 35,100

associates

Profit before tax --------?

Income tax expense ( 40,417)

Profit for the year from -------?

continuing operations

Loss for the year from –

discontinued operations

PROFIT FOR THE YR --------?

Other comprehensive income:

Unrealized holding gain net of tax 50,000

Comprehensive income ---------?

Additional information: cost of sale is 61.1% of Revenue.

PART 4 STATEMENTS OF CASH FLOWS

Direct method statement of cash flows

2022

Cash flows from operating activities

Cash receipts from customers 30,150

Cash paid to suppliers and employees ( 27,600)

Cash generated from operations ------?

Interest paid ( 270)

Income taxes paid ( 900)

Net cash from operating activities -------?

Cash flows from investing activities

Acquisition of subsidiary X, net of cash acquired ( 550)

Purchase of property, plant and equipment ( 350)

Proceeds from sale of equipment 20

Interest received 200

Dividends received 200

Net cash used in investing activities ---------?

Cash flows from financing activities

Proceeds from issue of share capital 250

Proceeds from long-term borrowings 250

Payment of lease liabilities ( 90)

Dividends paid [1] ( 1,200)

This could also be shown as an operating cash flow.

Net cash used in financing activities -------?

Effect of exchange rate changes ( 40)

Net increase in cash and cash equivalents -------?

Cash and cash equivalents at beginning of period 160

Cash and cash equivalents at end of period -------?