Shower Ltd was incorporated towards the end of 20X2, but it did not start trading until 20X3. Its…

Shower Ltd was incorporated towards the end of 20X2, but it did not start trading until 20X3. Its historical cost statement of financial position at 1 January 20X3 was as follows:

All the company’s transactions are on a cash basis.

The non-current assets are expected to last for five years and the company intends to depreciate its non-current assets on a straight-line basis. The non-current assets had a resale value of £2,000 at 31 December 20X3.

Notes

1. The closing inventory is 2,000 units and the inventory is sold on a first-in-first-out basis.

2. All prices remained constant from the date of incorporation to 1 January 20X3, but thereafter, various relevant price indices moved as follows:

Required:

Produce statements of financial position as at December 20X3 and statements of comprehensive income for the year ended on that date on the basis of:

(i) historical cost;

(ii) current purchasing power (general price level);

(iii) replacement cost;

(iv) continuous contemporary accounting (NRVA).