(a) Usha Ltd identified an impairment loss of 240,000 on one of its cash generation units (CGUs) on 31 December 2019. The CGU consists of the following assets (stated at their carrying amounts on 31 December 2019): Buildings 550,000 (remaining useful life 50 years) Goodwill 190,000 There has been a favourable change in the estimates of the recoverable amount of the CGU since the impairment loss was recognised. The recoverable amount of the CGU is now 620,000 on December 31, 2020. Buildings are depreciated on a straight-line basis.

Required Explain and show the accounting treatment for the reversal of the impairment loss as of December 31, 2020. (5 marks)

(b) Kamala plc is a developer and manufacturer of electronic data systems. Its accounting policy is to record non-current assets initially at cost. After initial recognition, land and buildings are remeasured at fair value when that value differs materially from carrying amount. Kamala plc adopts the policy of transferring the revaluation surplus included in equity to retained earnings as it is realised. Other non-current assets continue to be measured under the cost model. On 1 January 2011, Kamala plc acquired a freehold property in Peckham. The land element of the purchase price was 500,000 and the building element 3,500,000. The useful life of the building was estimated at 50 years at acquisition date. On 1 January 2016, the building element was revalued to 5,400,000 and the remaining useful life was unchanged. The land element was valued at 500,000 on 1 January 2016. On 31 December 2020, the open market value of the building element was determined as 2,500,000 and the market value of the land was estimated at 300,000. The remaining useful life of the building has again remained unchanged.

Required Explain and justify, with supporting numerical calculations, the accounting treatment for the land and buildings on 31 December 2020.