Jane is currently the sole proprietor of Hou Sheng Shang Trading that deals with healthcare products within the Perak state. In the wake of COVID-19, her business is growing bigger and faster. Knowing that you are a professional accountant in public practice, she then approached you with the following issues:

Her application for business loan was rejected as the banker could not understand the financial statements prepared by her. In light of this, identify and explain to her with detailed examples the accounting concepts that govern the preparation of Statements of Comprehensive Income and Statements of Financial Position.   (10 marks)