Chi Ltd
 Date: 31 August 2023

Details:

• Raw materials inventory (leather):
  • Cost: £28,000
  • Replacement cost: £26,000
• Finished goods inventory:

Product	Alpha	Beta
Direct costs	£60,000	£50,000
Proportion of fixed overhead	£16,000	£14,000
Proportion of selling costs	£4,500	£4,000
Net realizable value	£95,000	£75,000

• Office machinery:
   Acquired on 1 September 2017 for £280,000, depreciated over 8 years using the reducing balance method.
• Freehold property:
   Acquired 20 years ago for £2,900,000, land value estimated at £750,000. Buildings are depreciated over 60 years.
• Research and development:
  • Research costs: £570,000
  • Development costs: £990,000, benefiting over 7 years.

Required:
 Discuss how these items should be presented in Chi Ltd's financial statements for the period ending 31 August 2023.