a) Illustrate the accounting of the PPE during the latest financial year by showing the T- accounts for

(i) PPE cost and

(ii) Accumulated Depreciation and Impairment Losses.

b) For depreciation of its furniture, fittings, and equipment,

(i) how long are the useful lives

(ii) what depreciation method is used?

c) Demonstrate your understanding of gain/loss on disposal of fixed assets by preparing the journal entry to illustrate the accounting of Banyan Tree's disposal of its PPE. (needs help here)

Notes to the Financial Statements For the financial year ended 31 December 2019 13. Property, plant and equipment Freehold land $'000 Freehold buildings $'000 Furniture, Leasehold fittings and buildings equipment Computers $'000 $'000 $'000 Motor Construction- vehicles in-progress $'000 $'000 Total $'000 Group 349,529 40,507 583 292,489 1,543 1,251 175,330 6,287 3,903) 15,876 1,416 (1,781) 11,181 799 (100 16,247 885,495 27,543 6,372) (555) (33) (13,395) (58,271) (295) 6,880 (1,015) (283) (540) (79,124) (1,558) 3,109 2,547 4,838 562 2,232 (33) 595 87 (7,719 6,210 6,492 (405) 4,401 195 247 (176) 16,964 Cost or valuation: At 1 January 2018 Additions Disposals Disposal of subsidiaries Write-off Transfer from property development costs Transfer in/(out) Net exchange differences At 31 December 2018 and 1 January 2019 Additions Disposals Write-off Revaluation surplus Elimination of accumulated depreciation on revaluation Transfer (to)/ from property development costs Transfer in/(out) Net exchange differences At 31 December 2019 342,344 427 249,638 3,210 (22) 40,765 943 (2,350) 177,014 5,803 (1,543) (1,427) 15,478 1,300 (661) (762) 11,916 683 (233) (69) 8,902 35,497 (511) (778) 846,057 47,863 (5,320) (3,036) 46,094 45,085 1,009 (1,729) (1,729) (6,577) 762 4,597 10,412 17,946 483 14,255 620 1,999 (35,303) 643 613 21,208 402,487 14,178 294,642 464 40,305 14,008 208,872 679 16,654 51,793 986,319 14,939 8,420 Transfer (to)/from property development costs relates to freehold buildings and other related assets that the Group will be using for its hospitality business. 13. Property, plant and equipment (cont'd) Freehold land $'000 Furniture, Freehold Leasehold fittings and buildings buildings equipment Computers $'000 $'000 $'000 $'000 Motor Construction vehicles in-progress $'000 $'000 Group (cont'd) Total $'000 74,148 18,959 126,941 13,485 9,949 243,482 7,930 922 (294 9,362 (3,646 1,385 (1,769 505 (99) 20,104 (5,808) (8,889 (56 (5,327) (999) (274) (540 (14,546 (1,540 (890 (890 1,679 341 3,440 144 216 5,820 Accumulated depreciation and impairment losses: At 1 January 2018 Depreciation charge for the financial year Disposals Disposal of subsidiaries Write-off Transfer to property development costs Net exchange differences At 31 December 2018 and 1 January 2019 Depreciation charge for the financial year Disposals Write-off Impairment loss Elimination of accumulated depreciation on revaluation Transfer to property development costs Net exchange differences At 31 December 2019 73,978 19,928 129,771 12,431 10,514 246,622 967 7,886 (14) (2,187) 10,390 (1,498) (1,329) 1,684 (656) (756) 504 (232) (69) 21,431 (4,587) (2,154) 5,811 2,127 3,684 (1,729) (1,729) (386) (536) (922) 11,256 94,675 (103) 18,605 10,549 147,347 485 13,188 534 11,251 22,721 287,193 2,127 Net carrying amount: At 31 December 2018 At 31 December 2019 342,344 400,360 175,660 199,967 20,837 21,700 47,243 61,525 3,047 3,466 1,402 3,688 8,902 599,435 8,420 699,126 Notes to the Financial Statements For the financial year ended 31 December 2019 13. Property, plant and equipment Freehold land $'000 Freehold buildings $'000 Furniture, Leasehold fittings and buildings equipment Computers $'000 $'000 $'000 Motor Construction- vehicles in-progress $'000 $'000 Total $'000 Group 349,529 40,507 583 292,489 1,543 1,251 175,330 6,287 3,903) 15,876 1,416 (1,781) 11,181 799 (100 16,247 885,495 27,543 6,372) (555) (33) (13,395) (58,271) (295) 6,880 (1,015) (283) (540) (79,124) (1,558) 3,109 2,547 4,838 562 2,232 (33) 595 87 (7,719 6,210 6,492 (405) 4,401 195 247 (176) 16,964 Cost or valuation: At 1 January 2018 Additions Disposals Disposal of subsidiaries Write-off Transfer from property development costs Transfer in/(out) Net exchange differences At 31 December 2018 and 1 January 2019 Additions Disposals Write-off Revaluation surplus Elimination of accumulated depreciation on revaluation Transfer (to)/ from property development costs Transfer in/(out) Net exchange differences At 31 December 2019 342,344 427 249,638 3,210 (22) 40,765 943 (2,350) 177,014 5,803 (1,543) (1,427) 15,478 1,300 (661) (762) 11,916 683 (233) (69) 8,902 35,497 (511) (778) 846,057 47,863 (5,320) (3,036) 46,094 45,085 1,009 (1,729) (1,729) (6,577) 762 4,597 10,412 17,946 483 14,255 620 1,999 (35,303) 643 613 21,208 402,487 14,178 294,642 464 40,305 14,008 208,872 679 16,654 51,793 986,319 14,939 8,420 Transfer (to)/from property development costs relates to freehold buildings and other related assets that the Group will be using for its hospitality business. 13. Property, plant and equipment (cont'd) Freehold land $'000 Furniture, Freehold Leasehold fittings and buildings buildings equipment Computers $'000 $'000 $'000 $'000 Motor Construction vehicles in-progress $'000 $'000 Group (cont'd) Total $'000 74,148 18,959 126,941 13,485 9,949 243,482 7,930 922 (294 9,362 (3,646 1,385 (1,769 505 (99) 20,104 (5,808) (8,889 (56 (5,327) (999) (274) (540 (14,546 (1,540 (890 (890 1,679 341 3,440 144 216 5,820 Accumulated depreciation and impairment losses: At 1 January 2018 Depreciation charge for the financial year Disposals Disposal of subsidiaries Write-off Transfer to property development costs Net exchange differences At 31 December 2018 and 1 January 2019 Depreciation charge for the financial year Disposals Write-off Impairment loss Elimination of accumulated depreciation on revaluation Transfer to property development costs Net exchange differences At 31 December 2019 73,978 19,928 129,771 12,431 10,514 246,622 967 7,886 (14) (2,187) 10,390 (1,498) (1,329) 1,684 (656) (756) 504 (232) (69) 21,431 (4,587) (2,154) 5,811 2,127 3,684 (1,729) (1,729) (386) (536) (922) 11,256 94,675 (103) 18,605 10,549 147,347 485 13,188 534 11,251 22,721 287,193 2,127 Net carrying amount: At 31 December 2018 At 31 December 2019 342,344 400,360 175,660 199,967 20,837 21,700 47,243 61,525 3,047 3,466 1,402 3,688 8,902 599,435 8,420 699,126