CAMCON Limited (CAMCON)) operates a successful light engineering business with workshops in Belfast, Dublin and Galway. CAMCON is to prepare accounts for the year ended 31 December 2001, and these have yet to be finalized and signed off. You have been provided with the following information regarding the company:
Sale of Belfast Workshop The Belfast workshop was sold to ECLIPSE plc on 1 November 2001 for €500,000, and the sale agreement stated that a further €80,000 relating to the sale of the Belfast workshop would be receivable by CAMCON if a major new contract with BLACKWELL Bakery was to be secured. Negotiations for this new contract with BLACKWELL Bakery had commenced in late October 2001 but were still ongoing at 31 December 2001. At that time the directors of CAMCON stated that the negotiations appeared to be going well and that it was probable that the contract would be signed within three months, but that it was still too early to suggest that the final outcome was virtually certain. In early February 2002, negotiations with BLACKWELL Bakery concluded successfully and a contract was subsequently agreed and signed on 12 February 2002. CAMCON then received the extra €80,000 from the sale of the Belfast workshop from ECLIPSE ple on 20 February 2002. \ \
Bad Debts On 11 January 2002, a major customer, MACBETH & DUNCAN, went into liquidation. In April 2002, CAMCON received only 30% of the balance owing from MACBETH & DUNCAN as at 31 December 2001. No further monies are expected to be received from MACBETH & DUNCAN.
Fire at Galway Workshop A fire in the storeroom of the Galway workshop on 19 January 2002 destroyed €18,000 of inventory.
Government Grants During the year ended 31 December 2001, a package of government grant assistance was negotiated in respect of the Dublin and-Galway workshops, the terms of which are as follows:
Grant Available Qualifying Expenditure Graphic design for marketing brochure 1,000 Purchase of plant and machinery 5,000 Total 6,000 Scrutiny of the accounting records revealed the following:

(a) A marketing brochure was designed in November 2001 and final copies were printed and distributed in December 2001 at a cost of €10,000. The printer's invoice was received in November 2001. Due to a dispute over the colors used in the brochure, CAMCOM paid 75% of the printer’s invoice in December 2001. The balance was paid in January 2002.

(b) New plant and machinery costing €20,000 was ordered from a German manufacturer in November 2001, but was only delivered, installed and paid for in February 2002.
There have been no other additions to non-current assets since 1 January 2001.

(c) The company submitted a claim form in respect of these grants in March 2002 and lodged the resultant chequeen for €6,000 in April 2002.

(d) The company’s accounting policy is to depreciate plant and machinery over 5 years on a straight-line basis, charging a full year’s depreciation in the year of purchase.
Requirement Write a letter to the Financial Controller of CAMCON, outlining how each of the above matters should be treated in the company’s accounts for the year ended 31 December 2001 detailing, if appropriate, their financial effect and specific disclosure requirements.