Triangle, a public listed company, is in the process of preparing its draft financial statements for the year to 31 March 2018. 

On 1 April 2017, Triangle sold maturing inventory that had a carrying value of £3m (at cost) to Factorall, a finance house, for £5m. Its estimated market value at this date was in excess of £5m. The inventory will not be ready for sale until 31 March 2021 and will remain on Triangle's premises until this date. The sale contract includes a clause allowing Triangle to repurchase the inventory at any time up to 31 March 2021 at a price of £5m plus interest at 10% per annum compounded from 1 April 2017. The inventory will incur storage costs until maturity. The cost of storage for the current year of £300,000 has been included in trade receivables (in the name of Factorall). If Triangle chooses not to repurchase the inventory, Factorall will pay the accumulated storage costs on 31 March 2021. The proceeds of the sale have been debited to the bank and the sale has been included in Triangle's sales revenue.

Required:

Explain how this item should be treated in Triangle's financial statements for the year to 31 March 2018 in accordance with international accounting standards. Your answer should quantify the amounts where possible.