Auditing Finance Assignment: Revenue, Equity, and Financial Position

This assignment is an audit of the financial statements of Max Technologies Pte Ltd for the year ended June 30, 20X7. It includes the Revenue Statement of Profit or Loss and Other Comprehensive Income, the Statement of Changes in Equity, and the Statement of Financial Position. The assignment provides detailed financial data, including revenue, cost of sales, profit before tax, and income tax expense, as well as information on assets, liabilities, and equity. The notes to the financial statements explain the company's accounting policies, significant judgments, and estimates, including revenue recognition, depreciation methods, and information on property, plant, and equipment, trade receivables, and other receivables. The assignment also includes details of finance, income tax expense, and other financial data, offering a comprehensive overview of the company's financial performance and position.

Auditing

Finance
Part – a
Max Technologies Pte Ltd
Statement of Profit or Loss and other Comprehensive Income
For the financial year ended 30 June 20X7
Notes 20X7
$
Revenue 4 30,54,700.00
Cost of Sales 15,08,850.00
Gross Profit 15,45,850.00
Other Income 5 50,000.00
Selling and Distribution Expense 48,680.00
Administrative and other expenses 13,00,000.00
Finance Cost -
Profit before tax 6 2,47,170.00
Income Tax Expense 7 90,500.00
Profit for the year, representation total comprehensive income for
the year
1,56,670.00
Part b
Statement of changes in equity
Max Technologies Pte Ltd
Share Capital
Retained
Earnings Total
$ $ $
At 1st July 20X6 9,30,000.00 9,29,915.00 18,59,915.00
Profit for the year, representing total
comprehensive income for the year 1,56,670.00
2

Finance
Interim Dividend Paid 18,000.00
Transferred to Dividend Reserve 30,000.00
At 30th June 20X7 9,30,000.00 10,38,585.00 19,68,585.00
c. Statement of financial position
Max Technologies Pte Ltd
Statements of Financial Position
as at 30 June, 20X7
Notes $
ASSETS
Non Current Assets
Property, Plant and Equipment 8 4,68,000.00
Investment Properties 11,00,000.00
Current Assets
Inventories 4,15,300.00
Trade Receivables 9 4,15,060.00
Other Receivables 10 1,50,200.00
Cash and cash equivalents 1,56,745.00
Total Assets 27,05,305.00
EQUITY AND LIABILITIES
EQUITY
Share Capital 9,30,000.00
Retained Earnings 11 10,68,585.00
Equity attributable to owners of the Company 19,98,585.00
Non Current Liabilities
Deffered Tax Liabilities 42,000.00
Current Liabilities
Income Tax Payable 65,000.00
Provisions -
Trade Payables 3,87,100.00
Other Payables 12 2,12,620.00
Total equity and liabilities 27,05,305.00
3

Finance
d. Notes to financial statements
1. General
Mac Technologies Pte Ltd is having its registered office at 21 Benoi Crescent, Singapore 250420.
Being a GST registered company it manufactures and Distributes computer microchips.
2. Summary of the Significant Accounting Policy
2.1 Basis of preparation
The statements are formed according to Historical Cost Concept and in compliance with Singapore
Financial Reporting Standards (“FRS”). The historical cost is a measurement of the value that is used
in accounting where the asset price of an asset on the balance sheet depends on the nominal or
original cost when acquisition is done by the company. The historical cost method is used for assets
under the GAAP. The historical cost concept is even defined as the principle of cost accounting that
states the assets and liabilities of the business should be presented in the accounting records at the
historical cost.
The statements are prepared in Singapore Dollars ($) being the home currency.
2.2 Adoption of New and Revised Standards
The accounting policies are consistent with the previous financial year and the company has not
changed or adopted any new or different accounting policy except that the Company has adopted all
changes in standards applicable on it. There is no financial impact due to adoption of such changes in
Accounting Standards.
3. Significant Accounting Judgements and Estimates
3.1. Judgement made in application of the accounting policy
The management has not made any significant judgement in accounting estimate and policies that
would materially impact valuation of any assets and liability in the Financial Statements. The
accounting estimate and workings has been as per the normal scenario and there are no changes in
the judgement. The judgement of the company has been done as per the normal scenario and
accounting policy. This gives a fair indication that the
3.2. Estimation Uncertainty and Key sources behind it
Uncertainty in the financial statements can happen owing to various incidents. There are various
incidents that might or might not happen in the organization. However, the presence of such
incidents pose threat to the organization. The assumptions and estimates though taken prudently
but face some uncertainty. The Company has made best estimates as per latest information and
future expected events. There may be change in estimate with actual results due to dynamic
changes in technology and economic affairs with are beyond the control of the Company. Any such
changes if occurs are reflected in assumption as and when occurred.
4

Finance
4 Revenue 2017
5

Finance
Sales 2939700
Rental Income 115000
3054700
5 Other Income
Gain in Fair Value of Investment Properties 50000
50000
6 Profit before Tax
Profit has been arrived after charging
Obsolete Stock 6200
Bank Charges 1550
Bad Debts written off 2690
Machinery Maintanance Cost 125000
Staff Salary ( Including CPF $60760) 575000
Depreciation
Plant and Machinery 70000
Office Equipments 13000
Furniture and
Fittings 7800
Directors Remuneration 185000
Loss on Disposal of Fixed Assets 15000
General Expenses 289000
7 Income Tax Expense
Current Income Tax
Current Tax 65000
Under provision in prior year 9500
74500
Deferred Income Tax 16000
Income Tax Expense recognised in profit and loss 90500
8 Property, Plant and Equipment
Cost
Plant and
Machinery Total
As at 1 july 20X6 750000 895000
Additions
Deletions
As at 30 June 20X7 750000 895000
6

Finance
Accumulated Depreciation
As at 1 july 20X6 357000 427000
Additions
Deletions
As at 30 June 20X7 357000 427000
Carrying Amount on 30 June 20X7
393000 468000
9 Trade Receivables
Trade Receivables 424660
Less: Allowance for bad debts 9600
Total Trade Receivables 415060
10 Other Receivables
Other Debtors and repayments 101900
GST receivables 48300
150200
Total Trade Receivables
11 Retained Earning
Profit as on 1 July, 20X6 929915
Less: Transferred to Dividend Reserve 30000
Add: During the year 156670
Less: Interim Dividend Paid 18000
Profit as on 30 June, 20X7(after appropriation) 1038585
Dividend Reserve 30000
Total of Retained Earnings 1068585
12 Other Payables
Other Creditors and accruals 189020
GST Payables 23600
212620
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