Letter of Transmittal

July 31, 2017

To,
Md. Safiuddin
Lecturer, Department of Accounting
School of Business,
Independent University, Bangladesh (IUB)

Subject: An Assignment on the analysis of financial statements according to IAS/IFRS and Ratio
analysis.

Dear Sir,

I would like to thank you for giving us the opportunity to work and complete our assignment
through the guidance of your lectures. This assigned task give us the privilege to explore more
about IAS, IFRS, accounting principles and the presentation of financial statements. In this
assignment mainly we identify the difference in the presentation of financial statements of two
local companies and according to the requirement of IAS, IFRS. We also identify some ratio and
their analysis of two companies.

We have gave our best effort for the preparation of this assignment and hence any sort of
mistakes or difficulties in understandability may arise as we are still a learner in accountancy
field.

Finally, we would love to express our gratefulness for your support and kind consideration in and
outside the classroom. Thank you.

Yours Sincerely

Group members.
 Acknowledgement

Our deepest thank to our honorable faculty Md. Safiuddin Lecturer, School of
Business, Independent University, Bangladesh (IUB) the guide of the assignment
for guiding and correcting various documents of us with attention and care. His
support and encouragement made the assignment complete. This task extremely
improved our knowledge and had made a deep impact in our thoughts of learning
accounting as a professional qualification in the near future.

We are also thankful to the respected classmates who cooperated during our
classes in all aspects

Thank you.
 1. The presentation of balance sheet as per the requirements of IAS/IFRS. Research
and identify the specific IAS/IFRS pertaining to the presentation and disclosure of
assets and liabilities, discuss what the IFRS says/ requires, and do a comparative
analysis of the presentation of the chosen two companies.

IFRS Anlima Yarn Dyeing Limited Pran Agricultural Marketing

Company Limited
NON-CURRENT ASSETS

Anlima Yarn Dyeing Limited Pran Agricultural Limited

shows Property, plant and
equipment in the balance sheet
Property, plant and in asset section
Equipment Annual Report 2015, Page no:
33, Notes no : 9
Annual Report 2016, Page no:
46. Notes no : N/A
Anlima Yarn Dyeing Limited
Other intangible assets don’t shows Other intangible
assets in their balance sheet
Anlima Yarn Dyeing Limited
Goodwill don’t shows Goodwill in their
balance sheet.
Anlima Yarn Dyeing Limited
Deferred tax assets don’t shows Deferred tax
assets in their balance sheet.
Anlima Yarn Dyeing Limited
Non-current Assets Held don’t shows Non-current
for Sale and Discontinued Assets Held for Sale and
Operations Discontinued Operations in
their balance sheet.
Anlima Yarn Dyeing Limited
Available for sale financial don’t shows Available for sale
assets financial assets in their balance
sheet.
Anlima Yarn Dyeing Limited
TOTAL NON-CURRENT shows Non-current assets in
ASSETS their balance sheet in current
asset section
shows Property, plant and
equipment in the balance sheet
in asset section
Annual Report 2015, Page no:
74, Notes no : 10
Annual Report 2016, Page no:
73, Notes no : 10
Pran Agricultural Limited don’t
shows Other intangible assets in
their balance sheet
Pran Agricultural Limited don’t
shows Goodwill in their balance
sheet.
Pran Agricultural Limited don’t
shows Deferred tax assets in
their balance sheet.
Pran Agricultural Limited don’t
shows Non-current Assets Held
for Sale and Discontinued
Operations in their balance
sheet.
Pran Agricultural Limited don’t
shows Available for sale
financial assets in their balance
sheet.
Pran Agricultural Limited
shows Non-current assets in
their balance sheet in current
asset section
 CURRENT ASSETS
Anlima Yarn Dyeing Limited
shows Inventories in the
balance sheet in asset section
Inventories Annual Report 2015, Page no:
34, Notes no : 11
Annual Report 2016, Page no:
36. Notes no : 05
Anlima Yarn Dyeing Limited
shows Tread and other
receivables in the balance
sheet in asset section
Tread and other receivables Annual Report 2015, Page no:
35, Notes no : 12
Annual Report 2016, Page no:
37. Notes no : 06
Anlima Yarn Dyeing Limited
Pension benefit assets don’t shows Pension benefit
assets in their balance sheet.
Anlima Yarn Dyeing Limited
don’t shows Finance lease
Finance lease receivable receivable in their balance
sheet.
Anlima Yarn Dyeing Limited
Other interest bearing don’t shows Other interest
receivables bearing receivables in their
balance sheet.
Anlima Yarn Dyeing Limited
Current income tax don’t shows Current income
receivable tax receivable in their balance
sheet.
Anlima Yarn Dyeing Limited
shows Cash and Cash
equivalent in the balance sheet
in asset section
Cash and Cash equivalent Annual Report 2015, Page no:
35, Notes no : 13
Annual Report 2016, Page no:
38. Notes no : 08
Anlima Yarn Dyeing Limited
shows Total current assets in
TOTAL CURRENT ASSETS their balance sheet in current
asset section
Anlima Yarn Dyeing Limited
Asset classified as held don’t shows Asset classified
for sale
Pran Agricultural Limited
shows Inventories in the
balance sheet in asset section
Annual Report 2015, Page no:
74, Notes no : 11
Annual Report 2016, Page no:
73, Notes no : 11
Pran Agricultural Limited
shows Tread and other
receivables in the balance sheet
in asset section
Annual Report 2015, Page no:
74, Notes no : 12
Annual Report 2016, Page no:
73, Notes no : 12
Pran Agricultural Limited don’t
shows Pension benefit assets in
their balance sheet.
Pran Agricultural Limited don’t
shows Finance lease receivable
in their balance sheet.
Pran Agricultural Limited don’t
shows Other interest bearing
receivables in their balance
sheet.
Pran Agricultural Limited don’t
shows Current income tax
receivable in their balance
sheet.
Pran Agricultural Limited
shows Cash and Cash
equivalent in the balance sheet
in asset section
Annual Report 2015, Page no:
75, Notes no : 14
Annual Report 2016, Page no:
74, Notes no : 14
Pran Agricultural Limited
shows Total current assets in
their balance sheet in current
asset section
Pran Agricultural Limited don’t
shows Asset classified as held
for sale in their balance sheet.
 as held for sale in their
balance sheet.
Anlima Yarn Dyeing Limited
Impairment of Assets don’t shows Impairment of
Assets in their balance sheet.
Anlima Yarn Dyeing Limited
TOTAL ASSETS shows Total assets in their
balance sheet.
EQUITY AND LIABILITIES
NON-CURRENT LIABILITIES
Anlima Yarn Dyeing Limited
shows Long Term Loans in the
balance sheet in asset section
Long Term Loans Annual Report 2015, Page no:
37, Notes no : 17
Annual Report 2016, Page no:
40. Notes no : 13
Anlima Yarn Dyeing Limited
shows Deferred tax liabilities
in the balance sheet in asset
section
Deferred tax liabilities Annual Report 2015, Page no:
Don’t Show
Annual Report 2016, Page no:
40. Notes no : 14
Anlima Yarn Dyeing Limited
Provision don’t shows Provision in their
balance sheet.
Anlima Yarn Dyeing Limited
Other non-current don’t shows Other non-current
liabilities liabilities in their balance
sheet.
Anlima Yarn Dyeing Limited
TOTAL NON-CURRENT shows Total non-current
LIABILITIES liabilities in their balance
sheet.
Pran Agricultural Limited don’t
shows Impairment of Assets in
their balance sheet.
Pran Agricultural Limited
shows Total assets in their
balance sheet.
Pran Agricultural Limited
shows Long Term Loans in the
balance sheet in asset section
Annual Report 2015, Page no:
79, Notes no : 28
Annual Report 2016, Page no:
76, Notes no : 20
Pran Agricultural Limited
shows Deferred tax liabilities in
the balance sheet in asset
section
Annual Report 2015, Page no:
79, Notes no : 27
Annual Report 2016, Page no:
76, Notes no : 19
Pran Agricultural Limited don’t
shows Provision in their
balance sheet.
Pran Agricultural Limited don’t
shows Other non-current
liabilities in their balance sheet.
Pran Agricultural Limited
shows Total non-current
liabilities in their balance sheet.
 CURRENT LIABILITIES
Anlima Yarn Dyeing Limited
shows Tread and other
payables in the balance sheet
in asset section
Tread and other payables Annual Report 2015, Page no:
Don’t show
Annual Report 2016, Page no:
41. Notes no : 16
Anlima Yarn Dyeing Limited
shows short Term Loans in the
balance sheet in asset section
Short term Loans Annual Report 2015, Page no:
37, Notes no : 18
Annual Report 2016, Page no:
41. Notes no : 15
Anlima Yarn Dyeing Limited
don’t shows Current portion of
long term debt in their balance
Current portion of long sheet
term debt
Anlima Yarn Dyeing Limited
don’t shows Interest payable in
Interest payable their balance sheet
Anlima Yarn Dyeing Limited
don’t shows Liabilities for
goods in their balance sheet
Liabilities for goods
Anlima Yarn Dyeing Limited
shows Liabilities for expenses
in the balance sheet in asset
section
Liabilities for expenses Annual Report 2015, Page no:
37, Notes no : 19
Annual Report 2016, Page no:
41. Notes no : 18
Pran Agricultural Limited don’t
shows Tread and other payables
in their balance sheet
Pran Agricultural Limited
shows short Term Loans in the
balance sheet in asset section
Annual Report 2015, Page no:
76, Notes no : 16
Annual Report 2016, Page no:
77, Notes no : 22
Pran Agricultural Limited
shows Current portion of long
term debt in the balance sheet
in asset section
Annual Report 2015, Page no:
76, Notes no : 15
Annual Report 2016, Page no:
77, Notes no : 21
Pran Agricultural Limited show
interest payable in in their
balance sheet
Annual Report 2015, No Notes
Annual Report 2016, No Notes
Pran Agricultural Limited
shows Liabilities for goods in
the balance sheet in asset
section
Annual Report 2015, Page no:
76, Notes no : 17
Annual Report 2016, Page no:
77, Notes no : 23
Pran Agricultural Limited
shows Liabilities for expenses
in the balance sheet in asset
section
Annual Report 2015, Page no:
76, Notes no : 18
Annual Report 2016, Page no:
78, Notes no : 24
 Anlima Yarn Dyeing Limited
shows Workers profit
participation fund in the
Workers profit balance sheet in asset section
participation fund Annual Report 2015, Page no:
Don’t show
Annual Report 2016, Page no:
41. Notes no : 19
Anlima Yarn Dyeing Limited
shows Dividend Payable in the
balance sheet in asset section
Dividend Payable Annual Report 2015, Page no:
Don’t show
Annual Report 2016, Page no:
42. Notes no : 21
Anlima Yarn Dyeing Limited
don’t shows income tax
payables in their balance sheet
income tax payables
Anlima Yarn Dyeing Limited
shows Provision for tax in the
balance sheet in asset section
Provision for tax Annual Report 2015, Page no:
Don’t show
Annual Report 2016, Page no:
42. Notes no : 20
Anlima Yarn Dyeing Limited
shows Liabilities for other
Finance in the balance sheet in
Liabilities for other asset section
Finance Annual Report 2015, Page no:
38, Notes no : 20
Annual Report 2016, Page no:
41. Notes no : 17
Anlima Yarn Dyeing Limited
TOTAL CURRENT shows Total current
LIABILITIES liabilities in their balance
sheet.
Pran Agricultural Limited
shows Workers profit
participation fund in the
balance sheet in asset section
Annual Report 2015, Page no:
77, Notes no : 20
Annual Report 2016, Page no:
78, Notes no : 26
Pran Agricultural Limited
shows Dividend Payable in the
balance sheet in asset section
Annual Report 2015, Page no:
77, Notes no : 22
Annual Report 2016, Page no:
78, Notes no : 28
Pran Agricultural Limited
shows income tax payables in
the balance sheet in asset
section
Annual Report 2015, Page no:
77, Notes no : 21
Annual Report 2016, Page no:
78, Notes no : 27
Pran Agricultural Limited don’t
shows Provision for tax in their
balance sheet.
Pran Agricultural Limited
shows Liabilities for other
Finance in the balance sheet in
asset section
Annual Report 2015, Page no:
77, Notes no : 19
Annual Report 2016, Page no:
78, Notes no : 25
Pran Agricultural Limited
shows Total current liabilities
in their balance sheet.
 EQUITY
Anlima Yarn Dyeing Limited
shows Issued Share capital in
the balance sheet in asset
section
Issued Share capital Annual Report 2015, Page no:
35, Notes no : 14
Annual Report 2016, Page no:
38. Notes no : 09
Anlima Yarn Dyeing Limited
shows Share premiums and
other reserves in the balance
Share premiums and other sheet in asset section
reserves Annual Report 2015, Page no:
37, Notes no : 15
Annual Report 2016, Page no:
39. Notes no : 10
Anlima Yarn Dyeing Limited
shows Retained earnings in the
balance sheet in asset section
Retained earnings Annual Report 2015, Page no:
Don’t Show
Annual Report 2016, Page no:
40. Notes no : 12
Anlima Yarn Dyeing Limited
Parent shareholder equity don’t shows Parent shareholder
equity in their balance sheet.
Anlima Yarn Dyeing Limited
shows Dividend Equalization
Reserve in the balance sheet in
Dividend Equalization asset section
Reserve Annual Report 2015, Page no:
37, Notes no : 16
Annual Report 2016, Page no:
39. Notes no : 11
Anlima Yarn Dyeing Limited
Non-controlling interest don’t shows Non-controlling
interest in their balance sheet.
Anlima Yarn Dyeing Limited
don’t shows Revelation surplus
in their balance sheet
Revelation surplus
Pran Agricultural Limited
shows Issued Share capital in
the balance sheet in asset
section
Annual Report 2015, Page no:
78, Notes no : 23
Annual Report 2016, Page no:
75, Notes no : 15
Pran Agricultural Limited
shows Share premiums and
other reserves in the balance
sheet in asset section
Annual Report 2015, Page no:
79, Notes no : 24
Annual Report 2016, Page no:
76, Notes no : 16
Pran Agricultural Limited
shows Retained earnings in the
balance sheet in asset section
Annual Report 2015, Page no:
79, Notes no : 25
Annual Report 2016, Page no:
76, Notes no : 17
Pran Agricultural Limited don’t
shows Parent shareholder equity
in their balance sheet.
Pran Agricultural Limited don’t
shows Dividend Equalization
Reserve in their balance sheet.
Pran Agricultural Limited don’t
shows Non-controlling interest
in their balance sheet.
Pran Agricultural Limited
shows Retained earnings in the
balance sheet in asset section
Annual Report 2015, Page no:
79, Notes no : 26
Annual Report 2016, Page no:
76, Notes no : 18
 Anlima Yarn Dyeing Limited
TOTAL EQUITY shows Total equity in their
balance sheet.
Anlima Yarn Dyeing Limited
TOTAL EQUITY AND shows Total equity and
LIABILITIES liabilities in their balance
sheet.
Pran Agricultural Limited
shows Total equity in their
balance sheet.
Pran Agricultural Limited
shows Total equity and
liabilities in their balance sheet.

2.Investigate the non-current assets of the studied balance sheet and classify them as long-
term investment, property, plant and equipment, intangibles and other assets and vice
versa. (As you have learnt in ACN 301 following US GAAP)

ANLIMA YARN DYEING LIMITED (2015)

NON-CURRENT ASSETS:

Property, Plant and Equipment (Page No: 33 of Annual report, Note No: 9)
 Land and Land Development
 Factory Building and Civil Construction
 Plant and Machinery
 Electrical Installation
 Furniture and Fixture
 Office Equipment
 Vehicle

LONG-TERM INVESTMENT:
Security Deposits (Page No: 34 of Annual report, Note No: 10)
 Bangladesh Telecommunications Company Ltd (BTCL)
 Various Mobile Operators
 Titas Gas Transmission and Distribution Co. Ltd.
 Rural Electrification Board (REB)
 Central Depository Bangladesh Ltd.
Anlima Yarn Dyeing Limited (2016)
NON-CURRENT ASSETS:

Property, Plant and Equipment (Page No: 46 of Annual report, Note No: N/A)

 Land and Land Development

 Factory Building and Civil Construction
 Plant and Machinery
 Electrical Installation
 Furniture and Fixture
 Office Equipment
 Vehicle

LONG-TERM INVESTMENT:
Security Deposits (Page No: 36 of Annual report, Note No: 4)
 Bangladesh Telecommunications Company Ltd (BTCL)
 Mobile Operators
 Titas Gas Transmission and Distribution Co. Ltd.
 Rural Electrification Board (REB)
 Central Depository Bangladesh Ltd.

PRAN AGRICULTURAL MARKETING COMPANY LIMITED (2015)

NON-CURRENT ASSETS:

Property, Plant and Equipment ((Page No: 74 of Annual report, Note No: 10)
 Land and land development
 Factory building
 Machinery and equipment
 Furniture and fixtures
 Tools and accessories
 Vehicles
 Office equipment
 Plastics container
 Other fixed assets
PRAN AGRICULTURAL MARKETING COMPANY LIMITED (2016)

NON-CURRENT ASSETS:

Property, Plant and Equipment (Page No: 73 of Annual report, Note No: 10
 Land and land development
 Factory building
 Machinery and equipment
 Furniture and fixtures
 Tools and accessories
 Vehicles
 Office equipment
 Plastics container
 Other fixed assets

3. Identify and list the relevant IFRS, IAS related to current and non-current
assets

NON-CURRENT ASSETS:
IAS 16 Property, Plant and Equipment
IAS 38 Intangible Assets
IAS 40 Investment Property
IAS 28 Investments in Associates and Joint Ventures
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
IFRS 13 Fair Value Measurement

CURRENT ASSETS
IAS 2 Inventories
IAS 36 Impairment of Assets
IFRS 13 Fair Value Measurement
4. How did the studied companies evaluate inventories (lower of cost or market value)?
Mention page number with section/ sub-section number of relevant disclosures made in the
concerned annual report. Calculate inventory turnover ratio and days’ sales in inventory
ratio for the studied companies for two years.

Pran Agricultural Marketing Co. Ltd

Pran Agricultural Marketing Co. Ltd (2016): Inventories are valued at lower of cost or net
realizable value.

Page no. 33 of Annual Report, Note on section no. 3.05

Pran Agricultural Marketing Co. Ltd (2015): Inventories are valued at lower of cost or net
realizable value.

Page no. 33 of Annual Report, Note on section no. 3.05

Inventories are carried at the lower of cost and net realizable value as prescribed by BAS 2.
Inventories. Cost is determined using weighted average method. The cost of inventories comprises
of all costs of purchase, costs of conversion and other costs incurred in the normal course of
Business in bringing the inventories to their present location and condition. Costs of conversion
Include all direct costs excluding interest expense. Net realizable value is based on estimated
Selling price less any further costs expected to be incurred to make the sale. Cost of Finished
Goods include material and conversion cost. Cost of work- in process includes material cost.

ANLIMA YARN DYEING LTD

Anlima Yarn Dyeing Ltd (2016): Inventories are valued at lower of cost or net realizable value.

Page no. 31 of Annual Report, Note on section no. 2.9

Anlima Yarn Dyeing Ltd (2015): Inventories are valued at lower of cost or net realizable value.

Page no. 31 of Annual Report, Note on section no. 2.9

Inventories comprises of Raw materials, work-in-process, Finished goods. Raw materials have
been valued at the lower of cost and net realizable value in compliance with the requirement of
BAS 2 “Inventories”. The cost is calculated on weighted average method. Work-in-Process has
been valued at prime cost basis as required by IAS-2 with proportionate addition of Factory
Overheads. Finished goods have been valued at cost of material and other production overhead
attributable to bringing the goods to the stage of sale under the convention of BAS-2.

Pran Pran Anlima Yarn Anlima Yarn

Agricultural Agricultural Dyeing Dyeing Ltd(2015)
Marketing Co. Marketing Co. Ltd(2016)
Ltd (2016) Ltd (2015)
Inventory 1,685,339,370 1,496,547,549 172,540,655 183,537,272
Turnover ÷ ÷ ÷ ÷
Ratio= 569,968,380 536,252,303 38,093,292 42,331,408

Cost of Goods =2.96 times =2.80 times =4.53 times =4.33 times
Sold
/
Inventory
Day’s Sales in 360 ÷ 2.96 360 ÷ 2.80 360 ÷ 4.53 360 ÷ 4.33
Inventory
Ratio= =122 days =129 days =79 days =83 days

360
/
Inventory
Turnover