Required:
(a) Prepare an income statement for the year ended 31 December 2022, a statement of financial position at that date, and a statement of movements in equity note for 2022, all in good style, for the directors. (25 marks)

(b) Accounting Policy is a set of accounting principles, measurement bases,
conventions and rules that are used by a particular company to report a particular type of transaction or item in the financial statements.

For example, Depreciation: straight-line basis at 1% pa. Unless the user is made aware of which policies are followed, he/she is unable to understand the figures since the results can be altered significantly by the choice of accounting policy.