Good living Ltd has the following abridged Trial balances for the years ended 30 June 2018 and 2019 2019 N$ 2018 N$ Gross profit (30 000) (20 000) Retained earnings beginning of the year 10 880 7 000 Share capital 2 000 2 000 Profit on disposal of land 2 000 - Dividends paid 1 000 1 000 Income tax expense 3 120 1920 Net current assets 8 000 1 200 Other expenses 16 000 10 000 Machinery at cost 18 000 18 000 Machinery accumulated depreciation 11 200 8 000 Depreciation (straight-line @ 20% per annum) 3 200 3 200 stationery 3 000 - Additional information Note 1 The stationery expense of N$3 000 relating to 2018 was paid in 2019 and arose in 2018 only after the company's auditors found an underpayment of stationery expenses relating to 2018

Good living Ltd has the following abridged Trial balances for the years ended 30 June 2018 and 2019

2019

N$

2018

N$

Gross profit

(30 000)

(20 000)

Retained earnings beginning of the year

10 880

7 000

Share capital

2 000

2 000

Profit on disposal of land

2 000

-

Dividends paid

1 000

1 000

Income tax expense

3 120

1920

Net current assets

8 000

1 200

Other expenses

16 000

10 000

Machinery at cost

18 000

18 000

Machinery accumulated depreciation

11 200

8 000

Depreciation (straight-line @ 20% per annum)

3 200

3 200

stationery

3 000

-

Additional information

Note 1

The stationery expense of N$3 000 relating to 2018 was paid in 2019 and arose in 2018 only after the company's auditors found an underpayment of stationery expenses relating to 2018.The expense was never recorded in 2018. The amount is said to be material for Good Living company.

Note 2

The board of directors of Good Living Ltd re-estimated the residual value of the machinery to be N$1 400. The original value was N$2 000. No machinery was purchased or disposed since 2017.

Note 3

The share capital of Good Living has remained constant for some time and the Directors of Good Living are thinking of financing construction of a manufacturing plant starting June 2020.

Note 4

Ignore tax implications of the above items and maintain taxation as given above.

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Note 5

The following figures are also provided, Revenue (2018, N$40 000:2019, N$ 60 000. Gross profit on sales percent has been constant for both 2018 and 2019 @ 50%.

Required:

4.1

Prepare the Statement of Profit or Loss and other comprehensive income for year ended 30 June 2019 in accordance with the requirements of IFRS

8 Prepare the Statement of changes in equity showing the retained earnings only

5 Notes to the financial statements relating to the change in accounting estimates and prior period errors