1243 PM udmoodleudacae Limited the tirst task you have been

12:43 PM udmoodle.ud.ac.ae Limited, the tirst task you have been assigned to complete is to prepare the income statement for the 12-month period ended .ill etisalat June 30, 2022. On your desk on your first day, the previous chief financial officer has left you valuable information to complete the task 1. Total revenue recorded by Gulf Barges Limited during the accounting period was S185,852,000. Included in the total revenue figure is Other Revenue totalling $21,050,000 and Interest Income totalling $2,453,000. 2. Following is a list of expenses incurred by the company Ovcrhead irect Labour t Material 1,690,000.0 590,000 ffice les 3. On January 1, 2022, the company sold a block of land held for investment and recognized a gain on the sale of 12,861,000. 4. On Ap, 2022, the company sold equipment that 5. The company incurred finance interest charges during the 6. The company is involved in joint venture operations. As a resulted in a loss of $4,891,000. accounting period of S14,890,000 recorded a result of poor financial conditions, the company net loss of $15,069,000 from its share of the joint venture operations 7. From the operations of its associate firms, the company recorded a net gain of $4,287,000 for the financial period ended June 30, 2022. 8. If the company reports a profit during the year, the effective corporate tax rate is 25%. If a loss is reported the effective tax rate is zero Required Using the information supplied, prepare an income statement for Gulf Barges Limited for the accounting period that conforms with IFRS IAS I requirements and recommendation. (Hint: Expenses should be classified by function (e.g., cost of goods sold) not nature.

Solution

Sales Revenue 162349000 Cost of goods sold -75937000 Gross Profit 86412000 Expenses Selling & Distribution expenses -25369000 Administrative Expenses -10538000 Other Income 21050000 Gain on sale of land 12861000 Loss on sale of Equipment -4891000 Impairment loss -7200000 Operating profit 72325000 Finance Revenue 2453000 Finance Charges -14890000 Net Finance costs -12437000 Net gain on operations of associate firms 4287000 Share of Net loss from Joint Venture -15069000 Profit Before tax 49106000 Tax expense @25% 12276500 Profit after tax 36829500 Note : Though no information is given about impairment loss we have taken it as balancing figure, as it would not be possible to complete the sum without it.