Question

Woodside Global Trading Limited, a company listed on the Roman Stock Exchange, is a trading and investment entity. The company trades exclusively in golf equipment, and invests in property and other firms.

Woodside Global Trading Limited have just engaged you as their external accountant to assist in the preparation of the entity’s 2025 financial statements. The financial period of the company is from January 1 to December 31.

The company has provided you the following list of accounts, and the trial balance totals per account as at December 31, 2025:

Name of Account			Trial Balance Amount
Accounts Payable			$8,000,000
Accounts Receivables			$4,500,000
Advance from Substantial Shareholder			$10,750,000
Cash and Cash Equivalents			$950,000
Cost of Goods Sold			$65,015,000
Current Tax Liabilities			$1,600,000
Employee Benefit Obligations			$1,500,000
Gain from Sale of Plant and Equipment			$15,002,000
Intangible Assets			$1,200,000
Inventory			$19,650,000
Loans Due in Less than 12 Months			$1,150,000
Long-Term Intercorporate Investment			$48,000,000
Long-Term Land Investment			$6,500,000
Long-Term Loans			$19,580,000
Notes Payable			$4,000,000
Notes Payable (Due in Less than 12 Months)			$500,000
Operating Expenses			$16,014,000
Other Payables			$450,000
Other Receivables (Due in more than 12 Months)			$250,000
Paid-Up Capital			$32,000,000
Plant and Equipment			$28,500,000
Prepaid Expenses			$520,000
Property			$10,150,000
Reserves			$14,500,000
Retained Earnings			$15,190,000
Sales			$100,890,000
Short-Term Investments			$6,500,000

Additional Information:

1.       The trial balance amount for Plant and Equipment is a gross amount. The total accumulated depreciation of applied to Plant and Equipment as at December 31, 2025 is $6,000,000. It is the policy of Woodside Global Trading Limited to show the value of Plant and Equipment as a net amount in the financial statements.

2.       For the period ended December 31, 2025, Woodside Global Trading Limited recorded a profit of $7,500,000. This amount has yet to be included in the Retained Earnings balance as per the trial balance.

3.       The substantial shareholder has indicated that to settle the advance amount, the substantial shareholder as indicated a very strong preference and probability for payment by issuance of new equity.

4.       All prepaid expenses as at December 31, 2025 are expected to be consumed by the end of December 31, 2026.

5.       The land held for investment is separate from the property the plant and equipment (owned by Woodside Global Trading Limited) resides on.

6.       In the forthcoming 12 months Woodside Global Trading Limited is predicting the entity will purchase plant and equipment to the value of $14,000,000.

7.       The value of the Inventory as shown in the trial balance is the net realizable value. The value of inventory at cost is $15,650,000.

8.       The effective tax rate that Woodside Global Trading Limited is subject to is 21%.

Required:

Using the information supplied, prepare a balance sheet/statement of financial position for Woodside Global Trading Limited for the end of 2025 that conforms with recommended presentation of IFRS IAS 1 requirements and as preferred for the course.

Answer 1

WOODSIDE GLOBAL TRADING LIMITED
BALANCE SHEET FOR THE YEAR ENDED 31st December, 2025
	ASSETS
Current Assets
Accounts Receivables	$4500000
Short-Term Investments	$6500000
Cash and Cash Equivalents	$950000
Inventory	$15650000
Prepaid Expenses	$520000
Total current assets		$28120000
Non-current Assets
Property	$10150000
Plant and Equipment $28500000
Less: Accumulated Dep $6000000	$22500000
Other Receivables (Due in more than 12 Months)	$250000
Intangible Assets	$1200000
Long-Term Intercorporate Investment	$48000000
Long-Term Land Investment	$6500000
Total non-current assets		$88600000
Total Assets		$116720000
	LIABILITIES
Current liabilities;
Accounts Payable	$8000000
Current Tax Liabilities	$1600000
Employee Benefit Obligations	$1500000
Loans Due in Less than 12 Months	$1150000
Notes Payable	$4000000
Notes Payable (Due in Less than 12 Months)	$500000
Other Payables	$450000
Total current liabilities		$17200000
Non-current liabilities
Long-Term Loans	$19580000
Total non-current liabilities		$19580000
Shareholders’ Funds
Paid-Up Capital $32000000
Add: Advance from Substantial Shareholder $10750000	$42750000
Reserves	$14500000
Retained Earnings $15190000
Add: Profit $7500000	$22690000
Total Shareholders’ Funds		$79940000
Total liabilities & Shareholders’ Funds		$116720000

Inventory is reported on the lower of cost or net realizable value that is $15,650,000