Able plc, a pharmaceutical company, was searching for a medication capable of reducing the level of LDL cholesterol in the bloodstream. On 1 January 2009 it paid £360,000 to acquire equipment for carrying out research. During 2009 £146,000 was incurred on researching the medication and in 2010 £98,000 on developing the prototype of the successfully identified medication. £21,000 of the development cost was incurred prior to 1 March 2010 when the project met the asset recognition criteria. Further development costs of £121,000 were incurred on this project in 2011. The product launched in January 2012 with the expectation that its market will continue for not less than five years with revenue covering the total cost almost threefold. The research equipment is expected to have a useful life of five years and would usually be depreciated using the straight-line method.

Required: 

At what value will the project assets be reported on the company’s Statement of financial position as at 31 December 2012?

Clue: Depreciation of equipment is included in the development cost from the day it met the asset recognition criteria.