Financial Accounting II

Home Assignment 1
 information

Financial accounting ii (c)

Home Assignment One

Submited to:

Md. James Sarker

Dept. of BBA
United international universituy

Submitted By:

Mehrab Hussain 111 201 214

Sharmeen Akter Meem 111 201 202
Mysha Farzana Turna 111 201 035
Maruf hasan Arif 111 183 092
Md Riad Ahmed 111 201 017

Date:

16, April 2021

Home Assignment One

IAS 1:
The presentation of these financial statements is in accordance with the guidelines provided
by IAS 1: Presentation of Financial Statements, The Financial Statements comprises:

Statement of Financial Position

Statement of Profit or Loss and Other Comprehensive Income
Statement of changes in equity
Statement of Cash Flows

Standard items Compliance

COMPARATIVE INFORMATION AND

REARRANGEMENT
REPORTING PERIOD

GOING CONCERN

Accrual basis of accounting

MATERIALITY AND AGGREGATION:

OFFSETTING


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Home Assignment One

IAS -2

Presentation of inventory: Inventory has been recorded in statement of financial position as

current assets in the assets side.

Qualitative discloser
INVENTORIES:
Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based
on the weighted average principle, and includes expenditure incurred in acquiring the inventories,
production or conversion costs and other costs incurred in bringing them to their existing location and
condition. In the case of manufactured inventories and work-in- process, cost includes an appropriate
share of production overheads Based on normal operation capacity. Net realizable value is the
estimated selling price in the ordinary course of business, less the estimated costs of completion and
selling expenses. Inventory losses and abnormal losses are recognized as expenses. Basis for valuation
of inventories are as under.

Quantitative discloser Amount in Taka

INVENTORIES 30 June, 2019 30 June, 2018
A. STORES AND SPARES
Construction Materials 75,421,698 56,255,798
Iron, Steel and non-Ferrous Metal 65,842,338 73,765,538
Pipe, Tube and Fittings 5,542,854 3,006,072
Fuel, Oil & Lubricants 1,530,200 4,420,211
Raw Materials & Chemical 1,012,439 524,339
General Hardware 30,887,321 2,650,717
Loose Tools 5,442,895 620,221
Cords, Ropes and Chain 13,190,887 13,930,758
Laboratory Equipments 608,068 112,647
Machinery Equp. & Spare parts 148,914,585 159,910,759
Electrical Equp. & Spare parts 96,536,281 33,737,853
Office Equipments & Spare parts 6,948,750 245,467
Miscellaneous 521,300 618,181
452,399,616 349,798,561

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Home Assignment One

IAS 16

Presentation of Tangible assets:

Statement of Financial Position
Amount in Taka
Non-Current Assets: 30 June, 2019 30 June, 2018
Tangible Assets 948,713,925 948,713,925

Disclosure:
Qualitative disclosure:
RECOGNITION AND MEASUREMENT: Land, building, plant and machinery, furniture, fixtures and
equipment held for use in the production or supply of goods and services, or for administrative
purposes, are stated in the financial position at their cost and revalued amounts, being the fair value
at the date of revaluation, less any subsequent accumulated depreciation and subsequent
accumulated impairment losses. Capital work-in-progress represents the cost incurred for acquisition
and/or construction of property, plant and equipment that were not ready for use at the end of the
current reporting period and these are stated at cost. Revaluations are performed with sufficient
regulatory such that the carrying amounts do not differ materially from those that would be
determined using fair values at the end of each reporting period. The fixed assets as at 30th June 2010
were 1st time revalued to their fair market value as per decisions of the Board of Directors. All fixed
assets under property, plant and equipment available on the cut-off date 30th June 2010 were
revalued by an independent firm (M/S S. F. Ahmed & Co., Chartered Accountants (Representative of
ERNST & YOUNG GLOBAL in International during that time) and the revaluation surplus has been
incorporated in the financial statements as on 30th June 2010. Any revaluation increase arising on the
revaluation of such land, buildings, plant and machinery, furniture, fixtures and equipment’s is
recognized in other comprehensive income and accumulated in equity as revaluation reserve, except
to the extent that it reverses a revaluation decreases for the same asset previously recognized in profit
and loss, in which case the increase is credited to profit and loss to the extent if the decrease
previously expensed. A decrease in the carrying amount arising on the revaluation of such Land,
building, plant and machinery, furniture, fixtures and equipment is recognized in profit and loss to the
extent that it exceeds the credit balance, if any, held in the properties revaluation reserve relating to
a previous revaluation of that asset. Properties in the course of construction for production, supply or
administrative purposes are carried at cost, less any recognized impairment loss. Cost includes
professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the
company’s accounting policy. Such properties are classified to the appropriated categories of
property, plant and equipment when completed and ready for intended use. Depreciation of these
assets, on the same basis as other property assets, commences when the assets are ready for their
intended use.
Depreciation on revalued buildings, plant and machinery, furniture, fixtures and equipment is
recognized in profit and loss. On the subsequent sale or retirement of a revalued property, the
attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly
to retained earnings. The portion of revaluation surplus related to the depreciation on increased value
of a revalued assets has also been transferred to retained earnings directly as per IAS 16, paragraph
41. Freehold land is not depreciated and Assets held under finance leases are depreciated over their

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Home Assignment One

expected useful lives on the same basis as own assets. However, when there is no reasonable certainty
that ownership will be obtained by the end of the lease term, assets are depreciated over the shorter
of the lease term and their useful lives. An item of property, plant and equipment is derecognized
upon disposal or when no future economic benefits are expected to arise from the continued use of
the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and
equipment is determined as the difference between the sales proceeds and the carrying amount of
the asset and is recognized in profit or loss.

Quantitative disclosure:
PROPERTY, PLANT & EQUIPMENT
Based on Cost: Amount in Taka
30 June, 2019 30 June, 2018
A. Cost:
Opening Balance 1,907,906,604 1,741,819,700
Less: Transfer/Disposal during the year - -
Add: Addition during the year 32,741,496 166,086,904
Closing Balance 1,940,648,100 1,907,906,604

B. Accumulated Depreciation:
Opening Balance 887,365,908 766,479,792
Less: Transfer/Disposal during the year
Add: Charged during the year 123,519,076 120,886,116
Closing Balance 1,010,884,984 887,365,908

C. Written down value on cost (A-B): 929,763,116

1,020,540,696
2. Based on Revaluation:
A. Cost:
Opening Balance (27,160,033) (27,160,033)
Less: Transfer/Disposal during the year - -
Add: Addition during the year - -
Closing Balance (27,160,033) (27,160,033)

B. Accumulated Depreciation:
Opening Balance 44,666,738 38,834,057
Less: Transfer/Disposal during the year - -
Add: Charged during the year 3,484,345 5,832,681
Closing Balance 48,151,083 44,666,738

C. Written down value on cost (A-B): (75,311,116) (71,826,771)

3. Written down value on cost and revaluation (1+2): 854,452,000 854,452,000

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Home Assignment One

IAS 38

Presentation of intangible asset:

Statement of Financial Position

Asset: Amount in Taka

Non-current asset: 30 June, 2019 30 June, 2018
Intangible Asset 6,439,890 8,318,800

A. Qualitative disclosure:
(There was no Information about IAS 38 qualitative Disclosure)

Intangible asset:
1. Based on Cost Amount in Taka
A. Cost: 30 June, 2019 30 June, 2018
Opening Balance 10,398,500 10,398,500
Less: Transfer/Disposal during the year - -
Add: Addition during the year 250,987 -
Closing Balance 10,649,487 10,398,500

B. Accumulated Depreciation:
Opening Balance 2,079,700 -
Less: Transfer/Disposal during the year
Add: Charged during the year 2,129,897 2,079,700
Closing Balance 4,209,597 2,079,700

C. Written down value on cost (A-B): 6,439,890 8,318,800

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Home Assignment One

IFRS 15

Presentation of ifrs 15 -recognizing revenue

Statement of comprehensive income
30 June, 2019 30 June, 2018
Revenue, Net 7,709,220,427 5,533,351,168

Qualitative Disclosure:
IFRS 15 Revenue from Contracts with Customers IFRS 15 establishes a comprehensive framework for
determining whether, how much and when revenue is recognized. It replaced IAS 18 Revenue, IAS 11
Construction Contracts and related interpretations. Under IFRS 15, revenue is recognized when a
customer obtains control of the goods or services. Determining the timing of the transfer of control –
at a point in time or over time – requires judgement. The Company has adopted IFRS 15 using the
cumulative effect method (without practical expedients), with the effect of initially applying this
standard recognized at the date of initial application (i.e. 1 January 2018). Accordingly, the information
presented for June 2018 has not been restated – i.e. it is presented, as previously reported, under IAS
18, IAS 11 and related interpretations. Additionally, the disclosure requirements in IFRS 15 have not
generally been applied to comparative information. There was no material impact of adopting IFRS 15
on the Company’s statement of financial position as at 30 June 2019 and its statement of profit or loss
and OCI for the year ended 30 June 2019 and the statement of cash flows for the year then ended. For
additional information about the Company’s accounting policies relating to revenue recognition, see
Note 27.

Quantitative disclosure:
The effect of initially applying IFRS 15 on the Company’s revenue from contracts with customers is
described in Note 3.12. Due to the transition method chosen in applying IFRS 15, comparative
information has not been restated to reflect the new requirements.
A. Revenue Streams: Amount In Taka
Revenue from contracts with customers 7,709,220,427 5,533,351,168
7,709,220,427 5,533,351,168

B. Disaggregation of revenue from contracts with customers

Domestic Sales (Note-27.01) 7,707,460,627 5,523,710,278
Export Sales 1,759,800 9,640,890
7,709,220,427 5,533,351,168

During the year under audit Company sold 11, 44,135 MT Cement in local market and 210 MT in
local export.

END
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