Analyse the economical performance and monetary position, Financial Accounting

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The statement of comprehensive income for the year ended 31 December 2009 and its comparative is shown below:

2009		2008
$m		$m
Revenue	1,430		1,022
Cost of sales	(1,058)		(705)
Gross profit	372		317
Administrative expenses	(74)		(62)
Distribution costs	(158)		(100)
Finance costs	(60)		(30)
Share of profit of associate	80		-
Profit before tax	160		125
Income tax expense	(40)		(33)
Profit for the year	120		92
Other comprehensive income:
Revaluation gain on property, plant and equipment	45		15
Gains on Available for sale investments	16		6
Tax effects of other comprehensive income	(14)		(5)
Other comprehensive income for the year, net of tax	47		16
Total Comprehensive income for the year	167		108

Required:

(a) Analyse the economical performance and monetary position of KER for the year to 31 December 2009 and comment on the Chairman's claims on growth (8 marks are available for the calculation of relevant ratios).

(b) Diversity in accounting policies and estimates can influence the comparison of financial statements of two or more entities. Explain three examples of where such differences could affect comparability between entities.

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