Triangle, a public listed company, is in the process of finalising its draft financial statements for the year ended 31 March 2010. The following matters have been brought to your attention: 

(i) On 1 April 2009 the company brought into use a new processing plant that had cost EUR 30m to construct and had an estimated life of ten years. 

The plant uses hazardous chemicals which are put in containers and shipped abroad for safe disposal after processing. The chemicals have contaminated the plant itself which occurred as soon as the plant was used. It is a legal requirement that the plant is decontaminated at the end of its life. The estimated present value of this decontamination, using a discount rate of 8 per cent per annum, is EUR 10m. EUR 3m (EUR 30m/ 10 years) for plant depreciation and a provision of EUR 1m (EUR 10m/ 10 years) towards the cost of the decontamination have been accounted for in the draft financial statements as at 31 March 2010. (ii) (iii) The plant uses hazardous chemicals which are put in containers and shipped abroad for safe disposal after processing. The chemicals have contaminated the plant itself which occurred as soon as the plant was used. It is a legal requirement that the plant is decontaminated at the end of its life. The estimated present value of this decontamination, using a discount rate of 8 per cent per annum, is EUR 10m. EUR 3m (EUR 30m/ 10 years) for plant depreciation and a provision of EUR 1m (EUR 10m/ 10 years) towards the cost of the decontamination have been accounted for in the draft financial statements as at 31 March 2010. On 15 May 2010 the company’s auditors discovered a fraud in the material requisitions department. A senior member of staff who took up employment with Triangle in August 2009 had been authorising payments for goods that had never been received. The payments were made to a fictitious company that cannot be traced. The member of staff was immediately dismissed. Calculations show that the total amount of the fraud to the date of its discovery was EUR 480,000 of which EUR 420,000 related to the year ended 31 March 2010. (Assume the fraud is material.) The company has contacted its insurers in respect of the above fraud. Triangle is insured for theft, but the insurance company maintains that this is a commercial fraud and is not covered by the theft clause in the insurance policy. Triangle has not yet had an opinion from its lawyers. 

Explain how the items in (i) and (ii) above should be treated in Triangle’s financial statements for the year ended 31 March 2010 in accordance with IFRS. Your answer should quantify the amounts where possible.