Advance information - Issue 1 Revaluation of Land Included in the balance for PPE is a plot of land. The land has been revalued at 31 December 2020 to 30 million. The directors have decided to include this revaluation of land in the statement of financial position but I have not put through the journal entries to recognise the revaluation. Additional information The cost of the land included in the PPE on the statement of financial position at 31 December 2020 is 18 million. In the tax jurisdiction where Metalwise operates, gains on land are taxed when the land is sold in a future period. Advance information - Issue 2 Investment 8,000,000 On 1 February 2020, Metalwise bought 200,000 shares of the issued ordinary share capital of KKL plc, a listed company. Each share cost 40 and this investment, which represents a 10% shareholding, is a long-term investment in KKL plc. Metalwise incurred legal fees and brokers fees when it made this investment. Additional information Legal and brokers fees (transaction costs) of 500,000 are included finance costs in the statement of profit or loss for the year ended 31 December 2020. The directors have not made an irrevocable election to classify the investment as at fair value through OCI. At 31 December 2020, the fair value of one share in KKL plc was 55 per share In the tax jurisdiction where Metalwise operates gains on the disposal of equity instruments are not taxable in the current or any future period. Transaction costs in relation to the acquisition of shares are not allowed as a tax deduction at any time. Required: a) For Issue 1 Revaluation of land and Issue 2 Investment, explain the appropriate financial reporting treatment making reference to relevant accounting standards; and set out the accounting adjustments required to correct the financial statements for Metalwise plc for the year ended 31 December 2020. Maximum words for part a) = 450 (10 marks)