Background

You are a recent accounting graduate and have been employed by 'Australian Super' as an analyst. They are looking to make investments in the 'renewables sector' and in particular a stake in the Powering Australia Renewables Fund (POWar).This fund recently completed the acquisition of Tilt Renewables Ltd (Tilt). To gain an insight into POWar the Chief Investment Officer has asked you to review the financial report for Tilt, paying particular attention to the property plant and equipment acquired (please ignore the sale of the NZ assets as part of the acquisition process). Your attention has been directed to the financial report for the year ended 31 March 2021.

Required

The accounting practices applied to property plant and equipment, and in particular

1. With reference to the relevant paragraphs in the accounting standards, describe the accounting practices applied to property plant and equipment. What was the impact on the information provided in the financial report?
2. A critical aspect of the application of the 'revaluation model' is determination of fair value. With reference to the relevant paragraphs in the accounting standard how has this been determined?
3. Are there any issues which should receive additional attention in the determination fair value. For example, why did the revenues from the sale of 'Large Scale Generation Certificates' decline?Will this be permanent?