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Dragonfly Limited is a retail company in the technology industry. The company has a 31 March financial year-end. You are busy with the audit of
Dragonfly Limited is a retail company in the technology industry. The company has a 31 March financial year-end. You are busy with the audit of the 31 March 2022 financial statements, and the overall materiality for the audit was set at R1500000. During the audit, you came across the following transactions and events that took place during the 2022 financial year: DragonFly Limited has a machine that met the IFRS 5 held for sale criteria on 30 November 2021. The machine was originally acquired on 1 July 2019 at R1 200000 and was used in the company's operations. The machine is expected to have a useful life of 8 years (from the date of purchase) and a residual value of R250000. The machine had the following values on 30 November 2021 : - A value in use of R895 000. - A fair value of R915 000, with a cost to sell of R15 000 . The machine was sold for R895 000 on 15 February 2022. General information: - DragonFly Limited accounts for machinery using the cost model. - Depreciation is accounted for using the straight-line method. - You can assume that all assets' residual value, useful life, and depreciation method were reviewed on 31 March 2022, and no changes were required. .2) With reference to the Machine held for sale, prepare an extract from DragonFly Limited's Statement of Profit or Loss and Other Comprehensive Income for the financial year ending 31 March 2022, showing only the line items and figures applicable to the Machine held for sale. Comparative figures and notes are not required
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