The following data are available for Anacleto SpA for the year ended 30 September 2005:
The following information has not yet been taken into account in the amounts shown in the trial balance:
• Inventory at cost at 30 September 2005 was EUR 45,750,000. Inventory of certain items at net realisable value (NRV) at 30 September 2005 was EUR 6,000,000. The cost of this inventory was EUR 8,000,000.
• Depreciation is to be provided as follows:
- 2 per cent on buildings using the straight-line method
- 10 per cent on equipment using the diminishing-balance method
- 25 per cent on motor vehicles using the diminishing-balance method.
• EUR 4,600,000 was prepaid for repairs and EUR 10,350,000 has accrued for wages.
Help the financial controller to draw up an income statement and a balance sheet according to the layout prescribed by IAS 1.
When allocating expenses to distribution, selling and marketing costs or to administrative expenses, use the following assumptions:
