Basalt plc is a wholesaler. The following is its trial balance as at 31 December 20X0.
The following additional information is supplied:
(i) Depreciate plant and machinery 20% on straight-line basis.
(ii) Inventory at 31 December 20X0 is £90,000.
(iii) Accrue auditors’ remuneration £2,000.
(iv) Income tax for the year will be £58,000 payable October 20X1.
(v) It is estimated that 7/11 of the plant and machinery is used in connection with distribution, with the remainder for administration. The motor vehicle costs should be assigned to distribution.
(a) Prepare a statement of comprehensive income and statement of financial position in a form that complies with IAS 1. No notes to the accounts are required.
(b) Briefly explain what you would expect to find in the following sections of a UK company annual report:
(i) Directors’ report. (ii) Chairman’s report. (iii) Auditors’ report.