PEV Nov 04

My answer disagrees with the model answer the then chief assessor produced. But we both did not treat factory closure costs as a cost of Factory B.
It is interesting to see the model answer has the following statement after the account

Candidates may include or exclude closure costs within the profit statement

I happen to think that the closure costs of Factory A are a company cost and not a Factory B cost so should be kept separately.
This point crops up in 2.3 when you are asked to write about

(a) a brief comparison of the performance of Factory B before and after
closure of Factory A
(b) a brief comparison of the company’s performance before and after
closure of Factory A.