A client has a material balance in property, plant and equipment. The discussions with management indicate that there is a risk the client will capitalise all repair costs to minimise the impact on profits. Repairs are likely to be material this year because of flooding at the city premises. Extensive repairs were due to be commenced in the month prior to year-end, with completion around two months later. In addition, the board papers reveal that several machines were sold during the year.

Required

Based on the above information, what accounts and assertions are likely to be affected? Explain.