6. Triangle Ltd started trading on 1 January 2016. The statement of comprehensive income and the statement of financial position for the first year of trading are given as follows:
The price change indices for the year are given as follows:
All non-current assets and opening inventory were acquired on the first day of trading. Closing inventory was acquired on 30 November 2016.
Sales and purchases accrue evenly throughout the year.
Required:
(a) Identify and explain the capital maintenance concept most closely associated with current purchasing power financial statements.
(b) Explain the need for net monetary working capital adjustments within current purchasing power financial statements.
(c) Prepare the current purchasing power statement of comprehensive income for the year
ended 31 December 2016 and the current purchasing power statement of financial
position as at 31 December 2016 for Triangle Ltd.
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