Altura plc
 Date: 31 December 2023

Details:

1. Inventories of raw material, steel:

Cost	£35,000
Replacement cost	£40,000

2. Inventory of finished goods:

Material	Alpha	Beta
Direct costs	£75,000	£45,000
Proportion of fixed factory overhead	£20,000	£15,000
Proportion of selling costs	£5,000	£4,000
Net realizable value	£110,000	£70,000

3. Plant and machinery:
   • An item of plant was purchased on 1 January 2022 for £200,000. It has a useful life of 10 years and a residual value of £10,000. The straight-line method of depreciation is used.
4. Freehold property:
   • Acquired for £600,000, land element estimated at £100,000. The building has an expected life of 50 years.
5. Research and development:
   • Research costs related to the development of a new product: £10,000.
   • Development costs incurred on a project: £15,000, expected to benefit over 5 years.

Required:
 Prepare the necessary adjustments to the financial statements of Altura plc for the year ended 31 December 2023.