The statement of comprehensive income for the year ended 31 December 2009 and its comparative is shown below:
|
2009
|
2008
|
|
$m
|
$m
|
|
Revenue
|
1,430
|
1,022
|
|
Cost of sales
|
(1,058)
|
(705)
|
|
Gross profit
|
372
|
317
|
|
Administrative expenses
|
(74)
|
(62)
|
|
Distribution costs
|
(158)
|
(100)
|
|
Finance costs
|
(60)
|
(30)
|
|
Share of profit of associate
|
80
|
-
|
|
Profit before tax
|
160
|
125
|
|
Income tax expense
|
(40)
|
(33)
|
|
Profit for the year
|
120
|
92
|
|
Other comprehensive income:
|
|
Revaluation gain on property, plant and equipment
|
45
|
15
|
|
Gains on Available for sale investments
|
16
|
6
|
|
Tax effects of other comprehensive income
|
(14)
|
(5)
|
|
Other comprehensive income for the year, net of tax
|
47
|
16
|
|
Total Comprehensive income for the year
|
167
|
108
|
|
|
|
|
Required:
(a) Analyse the economical performance and monetary position of KER for the year to 31 December 2009 and comment on the Chairman's claims on growth (8 marks are available for the calculation of relevant ratios).
(b) Diversity in accounting policies and estimates can influence the comparison of financial statements of two or more entities. Explain three examples of where such differences could affect comparability between entities.