Trial Balance
| Trial Balance | Opening | Transactions | Closing | |||
|---|---|---|---|---|---|---|
| Debit | Credit | Debit | Credit | Debit | Credit | |
| Capital | - | 26,000,000.00 | - | - | - | 26,000,000.00 |
| Loans | - | 1,450,000.00 | 1,290,500.00 | 1,609,500.00 | - | 1,769,000.00 |
| Duties and Taxes Payables | - | 248,900.00 | 221,521.00 | 276,279.00 | - | 303,658.00 |
| Trade Payables | - | 737,550,000.00 | 82,820,423.74 | 120,378,522.88 | - | 775,108,099.14 |
| Other Payables | - | 17,854,000.00 | 1,879,000.00 | 2,245,000.00 | - | 18,220,000.00 |
| Defined Benefit Liability | - | 9,845,000.00 | 1,750,000.00 | 1,545,000.00 | - | 9,640,000.00 |
| Property Plant and Equipment | 158,750,000.00 | - | 8,900,000.00 | 2,456,000.00 | 165,194,000.00 | - |
| Intangible Assets | 31,750,000.00 | - | - | 2,300,000.00 | 29,450,000.00 | - |
| Investment at FVTOCI | 28,575,000.00 | - | 1,550,000.00 | - | 30,125,000.00 | - |
| Trade receivables | 326,206,500.00 | - | 329,468,565.00 | 287,061,720.00 | 368,613,345.00 | - |
| Inventory | 13,659,360.00 | - | - | - | 13,659,360.00 | - |
| Other Receivables | 182,675,640.00 | - | 184,502,396.40 | 179,022,127.20 | 188,155,909.20 | - |
| Cash and Cash Equivalent | 47,650,000.00 | - | 19,575,387.50 | 57,176,162.50 | 10,049,225.00 | - |
| Plan Asset | 6,248,900.00 | - | 4,249,868.00 | 1,750,000.00 | 8,748,768.00 | - |
| Sales revenue | - | - | - | 137,280,000.00 | - | 137,280,000.00 |
| Purchase | - | - | 109,435,020.80 | - | 109,435,020.80 | - |
| Other Direct Expenses | - | - | 27,358,755.20 | - | 27,358,755.20 | - |
| Other Income | - | - | - | 3,395,059.20 | - | 3,395,059.20 |
| FV Gain on Investment | - | - | - | 1,550,000.00 | - | 1,550,000.00 |
| Admin Expenses | - | - | 6,153,296.08 | - | 6,153,296.08 | - |
| Salary expenses | - | - | 4,589,000.00 | - | 4,589,000.00 | - |
| Pension Expenses | - | - | 4,905,000.00 | - | 4,905,000.00 | - |
| Depreciation Expenses | - | - | 4,756,000.00 | - | 4,756,000.00 | - |
| Rental Charges | - | - | 1,150,000.00 | - | 1,150,000.00 | - |
| Office Expenses | - | - | 1,876,000.00 | - | 1,876,000.00 | - |
| Other Expenses | - | - | 1,614,637.06 | - | 1,614,637.06 | - |
| Retained Earnings | - | 2,567,500.00 | - | - | - | 2,567,500.00 |
| Total | 795,515,400.00 | 795,515,400.00 | 798,045,370.78 | 798,045,370.78 | 975,833,316.34 | 975,833,316.34 |
Defined Benefit Plan Analysis
Comparison of GAAP vs. Actuarial Report figures.
Movement of Defined Benefit Obligation
GAAP
| Opening Provision | 9,845,000.00 |
| Expenses | 1,545,000.00 |
| Payment | (1,750,000.00) |
| Closing [A] | 9,640,000.00 |
As per the Actuarial Report
| Opening Provision | 9,845,000.00 |
| Service Costs | 875,900.00 |
| Interest Costs | 648,900.00 |
| Payments | (1,750,000.00) |
| Actuarial (Gain)/Loss | 1,940,200.00 |
| Closing Provision [B] | 11,560,000.00 |
Effect of NFRS Application [A-B] 1,920,000.00
In Liability, the difference in Closing Provision is only due to Increase in Expenses and the actuarial Gain/Loss.
So, a simple Adjustment entry would be:
Service Costs A/c Dr. 875,900.00
Interest Cost A/c Dr. 648,900.00
Actuarial Loss A/c Dr. 1,940,200.00
To Pension Expenses A/c 1,545,000.00
To Defined Benefit Plan A/c 1,920,000.00Movement of Plan Asset
GAAP
| Opening Balance | 6,248,900.00 |
| Interest Income | 4,249,868.00 |
| Payment | (1,750,000.00) |
| Closing | 8,748,768.00 |
As per the Actuarial Report
| Opening Balance | 6,248,900.00 |
| Contribution | 3,500,000.00 |
| Interest Income | 2,150,000.00 |
| Payments | (1,750,000.00) |
| Actuarial Gain/(Loss) | (1,400,132.00) |
| Closing Provision | 8,748,768.00 |
In case of Plan Asset, the change relates to only the interest income and equivalent effect to the actuarial Variance.
So, a simple Adjustment entry would be:
Interest Income GAAP A/c Dr. 749,868.00
Actuarial Loss - OCI A/c Dr. 1,400,132.00
To Interest Income - NFRS A/c 2,150,000.00Statement of Financial Position
| Particulars | As per Trial | Actuarial Adjustments | Finalized |
|---|---|---|---|
| ASSETS | |||
| Non-Current assets | 224,769,000.00 | ||
| Property, plant and equipment | 165,194,000.00 | - | 165,194,000.00 |
| Investment in Shares | 30,125,000.00 | - | 30,125,000.00 |
| Intangible assets | 29,450,000.00 | - | 29,450,000.00 |
| Current assets | 602,708,479.20 | ||
| Inventories | 35,890,000.00 | - | 35,890,000.00 |
| Trade and other receivables | 556,769,254.20 | - | 556,769,254.20 |
| Cash and cash equivalents | 10,049,225.00 | - | 10,049,225.00 |
| Total Assets | 827,477,479.20 | - | 827,477,479.20 |
| LIABILITIES AND EQUITY | |||
| Non- current Liabilities | |||
| Bank Loan | 1,769,000.00 | - | 1,769,000.00 |
| Post-Employment benefit obligation | 891,232.00 | 1,920,000.00 | 2,811,232.00 |
| Current liabilities | |||
| Trade payables | 775,108,099.14 | - | 775,108,099.14 |
| Other Payables | 18,220,000.00 | - | 18,220,000.00 |
| Current Tax liability | 538,615.81 | - | 538,615.81 |
| Total Liabilities | 796,526,946.95 | 1,920,000.00 | 798,446,946.95 |
| Share Capital | 26,000,000.00 | - | 26,000,000.00 |
| Retained Earnings | 4,950,532.25 | (1,920,000.00) | 3,030,532.25 |
| Total Liabilities and equity | 827,477,479.20 | - | 827,477,479.20 |
Statement of Profit/Loss
| Particulars | As per Trial | Actuarial Adjustments | Finalized |
|---|---|---|---|
| Revenue | 137,280,000.00 | - | 137,280,000.00 |
| Cost of sales | (114,563,136.00) | - | (114,563,136.00) |
| Gross profit | 22,716,864.00 | - | 22,716,864.00 |
| Other income | 3,395,059.20 | 1,400,132.00 | 4,795,191.20 |
| FV gain on Investment | - | - | - |
| Distribution costs | - | - | - |
| Administrative expenses | (6,153,296.08) | - | (6,153,296.08) |
| Employee salaries and | (4,589,000.00) | - | (4,589,000.00) |
| Employee benefits | (4,905,000.00) | 20,200.00 | (4,884,800.00) |
| Depreciation and amortisation expense | (4,756,000.00) | - | (4,756,000.00) |
| Rental Expenses | (1,150,000.00) | - | (1,150,000.00) |
| Other Office expenses | (3,490,637.06) | - | (3,490,637.06) |
| Finance costs | - | - | - |
| Profit before tax | 1,067,990.06 | 1,420,332.00 | 2,488,322.06 |
| Income tax expense | 234,957.81 | - | 234,957.81 |
| Profit for the year | 833,032.25 | 1,420,332.00 | 2,253,364.25 |
Statement Of Other Comprehensive Income:
| As per Trial | Actuarial Adjustments | Finalized | |
|---|---|---|---|
| Items that will not be re-classified to Profit or Loss: | |||
| PPE Revaluation Reserve | - | - | - |
| FV gain on FA at FVTOCI | 1,550,000.00 | - | 1,550,000.00 |
| Actuarial Gain/(Loss) on Employment Defined Benefit Plans | - | (3,340,332.00) | (3,340,332.00) |
| Items that may be re-classified subsequently to Profit or Loss: | |||
| Exchange Difference on translation of Foreign operations | - | - | - |
| Total Other Comprehensive Income for the year, net of tax | 1,550,000.00 | (3,340,332.00) | (1,790,332.00) |
| Total Comprehensive Income for the year, net of tax | 2,383,032.25 | (1,920,000.00) | 463,032.25 |
| Retained earnings at start of year | 2,567,500.00 | - | 2,567,500.00 |
| Dividend Paid | - | - | - |
| Retained earnings at end of year | 4,950,532.25 | - | 3,030,532.25 |