A specialist engineering company has the following transactions in the year to 31 December 2012.

(i) An order was received on 15 December 2012 for a machine tool costing \(£ 810,000\). A \(10 \%\) deposit was paid by the customer on placing the order - work will start on the order in February 2013.

(ii) Surplus goods from a previous order were sold to a customer for \(£ 550,000\) on 1 October 2012. The customer was given 12 months' free credit. The company's average cost of borrowing is \(8 \%\).

(iii) In June 2012, the company delivered a cutting head to a Russian customer with a sales value of \(£ 1.2 \mathrm{~m}\). It was agreed that the Russian customer would give 40,000 barrels of oil worth \(£ 1.2 \mathrm{~m}\) in exchange. This oil was used by a different division of the engineering company.

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Explain how these transactions should be dealt with in the financial statements of the company for the year to 31 December 2012.