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- May 27, 2015 at 3:33 am #249385
Statements of financial position as at: 30 September 20X5 30 September 20X4
$’000 $’000
Property, plant and equipment (note (ii)) 10,600 15,800Non–current liabilities
Finance lease obligations (note (ii)) 2,000 1,700Deferred tax 200 500
Government grants (note (ii)) 1,400 900current liablity
Government grants (note (ii)) 600 400
Finance lease obligations (note (ii)) 900 800(ii) The details of the property, plant and equipment are:
Acc’d Carrying
Cost depreciation value
$’000 $’000 $’000
At 30 September 20X4 20,200 4,400 15,800
At 30 September 20X5 16,000 5,400 10,600
During the year Tabba sold its factory for its fair value $12 million and agreed to rent it back, under an
operating lease, for a period of five years at $1 million per annum. At the date of sale it had a carrying value
of $7.4 million based on a previous revaluation of $8.6 million less depreciation of $1.2 million since the
revaluation. The profit on the sale of the factory has been included in operating profit. The surplus on the
revaluation reserve related entirely to the factory. No other disposals of non–current assets were made
during the year.
Plant acquired under finance leases during the year was $1.5 million. Other purchases of plant during the
year qualified for government grants of $950,000.
Amortisation of government grants has been credited to cost of salessir regarding to govt grants what will go to cash flow and what should be treated as sale amount to plant and profit
May 27, 2015 at 6:22 am #249401Government grants:
deduct from profit before tax, in operating activities, the amortisation of 250
add, into financing activities, the 950 grant received
PPE:
add, into investing activities, 12,000 proceeds of sales
deduct, from operating activities, 4,600 profit on disposal
add, in operating activities, 250 depreciation
deduct, in investing activities, 950 purchase of PPE
Ok?
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