Reference no: EM132578376
Aspen has produced the following trial balance as at 31 March 20X5:
Land and buildings at cost (land cost £1m) 3,600,000
Land and buildings - accumulated depreciation 824,000
Motor vehicles at cost 220,000
Motor vehicles - accumulated depreciation 64,400
Purchases 890,700
Distribution and selling costs 22,000
Inventories at 1 April 20X4 16,860
Receivables 42,880
Payables 19,300
Cash 22,350
Revenue 2,099,180
Ordinary share capital 830,000
Share premium 582,000
Retained earnings 466,600
Bank loan 20,000
Tax payable 16,200
Administrative expenses 58,450
Research and development expenditure 30,000
Finance Charge 6,100
Income tax expense 12,340
4,921,680 4,921,680
The following information is relevant for preparing the financial statements:
a. Inventories at 31 March 20X5 were valued at £16,000.
b. One of Aspen's customers was declared bankrupt in April 20X5 (following the reporting period) owing Aspen £17,200.
c. Depreciation is charged on buildings at 4% of cost and is part of cost of sales.
Depreciation on motor vehicles is charged at 20% per annum on a reducing balance basis and is part of selling and distribution costs.
d. The research and development costs relate to development of a new product. The product was declared commercially viable on 30 November 20X4 and £18,000 of the expenditure was incurred prior to that date. The product went into production and started being sold in April 20X5.
e. The directors proposed a final dividend of £12,000 at the year end.
Required
Question 1: Prepare the statement of financial position and the statement of profit or loss for Aspen as at 31 March 20X5, in accordance with international financial reporting standards and in a form suitable for publication.