| 2020 N$ 000 | 2019 N$ 000 | |
| Income | 14 600 | 12 700 |
| Cost of sales | 7 200 | 6 100 |
| Gross profit | 7400 | 6 600 |
| Operating expenses | (3 600) | (3 200) |
| Interest paid | (500) | (400) |
| Profit before tax | 3 300 | 3 000 |
| Taxation | (1 320) | (1200) |
| Profit and total comprehensive income for the year | 1 980 | 1 800 |
ADDITIONAL INFORMATION:
| 2020 N$ 000 | 2019 N$ 000 | |
| Dividends | 500 | 400 |
| Retained earnings: For year | 1480 | 1 400 |
| Opening balance | 3 200 | 1 800 |
| Closing balance | 4 680 | 3200 |
The following balances appear in the draft statement of financial position on 31 December 2020:
| 2020 N$ 000 | 2019 N$ 000 | |
| Deferred tax liability | 1 620 | 1 300 |
| Inventory | 3 200 | 2 900 |
After completion of the draft statements, management decided to change the method for determining the cost price of inventory. It was decided to include, as from 1 January 2020, overheads in the cost of inventory. Details of inventory are as follows
31 December
| 2020 | 2019 | 2018 | |
| Inventory at cost | |||
| New basis | 3 840 | 3 480 | 3 000 |
| Old basis | 3 200 | 2 900 | 2 500 |
| 640 | 580 | 500 |
REQUIRED:
b) Prepare the statement of comprehensive income and the statement of changes in equity and disclose the relevant note to the financial statements of H Ltd for the change for the year ended 31 December 2020 in accordance with International Financial Reporting Standards.
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