Your company has just sealed a deal to sell a tract of land with accompanying warehouse for €3.2 million. This is significantly lower than the €7 million your firm paid when the plot was purchased at the height of the property boom.

International Accounting Standards have been followed by your firm and so you will not make an accounting loss on the sale (why?). The company has non-current assets of €4 million, non-current liabilities of €2.2 million and net working capital (current assets less current liabilities) of €0.9 million. What impact does the sale have on your firm’s statement of financial position?