ACCOUNTING

QUESTION 4(13 MARKS Ignore VAT Silly Silicone Lid has two classes of property, plant & equipment (PPE): land and equipment. The following information is available with respect to PPE for the year ended 31 August 20X9. Extract from the notes to the financial statements of Silly Silicone Led for the year ended 31 August 209 PPE reconciliation note Land Equipment Gross canying amount, I September 20X8 10 000 000 2 000 000 Accumulated depreciation. I September 20X3 (400 000) Accumulated impairment. I September 20X8 Carrying amount. I September 20X8 10 000 000 1 600 000 Additions Disposals (3 000 000) Depreciation expense (200 000) Impairment loss (1 500 000) Revaluations 2 000 000) Carrying amount, 31 August 20X9 Gross carrying amount, 31 August 20X9 14 000 000 2 500 000 Accumulated depreciation. 31 August 20X9 (550 000) Accumulated impairment. 31 August 20X9 (3 500 000) 2 Additional information I Land is measured using the revaluation model. Due to a downturn in the property market, several items of land were revalued downwards during the 20X9 year. The land disposed of during the 20X9 year was not revalued during the 20X9 year The profit on disposal reported in the financial statements was the difference between the most recently reported fair value and the proceeds on disposal. Equipment is measured using the cost model. The cost of the equipment disposed of during the 20%9 year was RI 20 000, 7 Net operating costs reported on the statement of comprehensive income for the year ended 31 August 20X9 included the following items related to PPE Profit on disposal of land Loss on disposal of equipment 50 000 30 000 You are required to: Prepare the investing activities section of the cash flow statement of Silly Silicone Lid for the rear ended 3| August 20X9. Disclose cash flows relating to each class of PPE separately. (13 marks) END