1 Introduction to published accounts Chapter learning objectives

P Statement of changes in equity for the year ended 31 March 20X1 Share capital

Retained

earnings Total
$ $ $ $
Balance at 1 April 20X0 1,500 800 1,163 3,463 Total comprehensive
income 2,640 2,640 Dividends (390) (390) ––––– ––––– ––––– ––––– Balance at 31 March
20X1

Share
premium

1,500 800 3,413 5,713

––––– ––––– ––––– ––––– Note: Dividends declared after the year end will not be adjusted for.

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Introduction to published accounts

_{P Statement of financial position as at 31 March 20X1}
Non-current assets $000 $000
Property, plant and equipment 4,250
Current assets
Inventories 114
Trade receivables 418
Prepayments 25
Investments 2,700
Cash and cash equivalents 12
––––– 3,269
–––––
Total assets 7,519
–––––
Equity and liabilities
Capital and reserves
Issued ordinary share capital 1,500
Share premium 800
Retained earnings 3,413
–––––
5,713
Non-current liabilities
Long-term loans 1,200
Current liabilities
Trade payables 136
Income tax 470
––––– 606
–––––
Total equity and liabilities 7,519
–––––

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Chapter
2

Tangible non-current

assets
Chapter learning objectives
Upon completion of this chapter you will be able to:
 define the cost of a non-current asset
 calculate the initial cost measurement of a non-current asset  calculate the initial cost measurement of a self-constructed
non- current asset
 distinguish between asset and expense items
 identify the subsequent expenditure that may be capitalised  explain the treatment of borrowing costs per IAS 23
 explain the requirements of IAS 16 in relation to the
revaluation of non-current assets
 account for revaluation of non-current assets
 account for gains and losses on disposal of non-current
assets
 calculate depreciation based on the cost model
 calculate depreciation based on the revaluation model
 calculate depreciation on assets that have two or more
significant parts (complex assets)
 apply the provisions of IAS 20 in relation to accounting for
government grants
 define investment properties
 discuss why the treatment of investment properties should
differ from other properties
 apply the requirements of IAS 40 for investment properties.

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