Ato Ltd is a Ghanaian company located in the Ashanti Region which manufactures goods such as washing machines, tumble dryers and dishwashers. The manufacturing industry in Ghana is highly competitive with many products on the market. Ato Ltd current accounting year end is 31 December 2022. Ato Ltd has a production facility which started showing serious cracks and signs of possible leakage since July 2022. It is probable that Ato Ltd will have to undertake a major repair somewhere during 2023 in order to rectify the problem. Ato Ltd does not have an insurance policy covering the production facility. The Chief Operating Officer, Mr Ocran has refused to disclose the issue in the financial statement for the year ended 31 December 2022 and no repair costs have yet been undertaken although he is aware that this is contrary to International Financial Reporting Standards (IFRSs). According to the Chief Operating Officer, he does not think that the need for major repairs on the production facility is an Page 4 of 15 indicator of impairment. The Chief Operating Officer argues that no provision for the repair to the production facility should be made due to the fact that there is no legal or constructive obligation to repair the facility. Ato Ltd has a revaluation policy for property, plant and equipment and there is a balance on the revaluation reserves of GHS 20 million in the financial statements for the year ended 31 December 2022. However, this balance does not relate to the production facility, but the Chief Operating Officer is of the opinion that this surplus can be used for any future loss arising from the collapse of the production facility. Required In accordance with relevant IFRSs, discuss the accounting treatment which Ato Ltd should adopt to account for the above transaction in its financial statements for the year ended 31 December 2022.