Explain the most appropriate IFRS financial reporting treatments of each of the following issues. Each business is unrelated and is preparing its financial statements for the year ended 30 June 2021. For each issue, explain and justify the required accounting treatment. (i) Naburn Ltd owns a number of restaurants. Its Finance Director wishes to revalue its biggest restaurant, if possible, as a one-off event on 30 June 2021. She does not wish to revalue any of the other properties as many of them have fallen in value. The Finance Director considers that the property should be revalued to 3m from 1 July 2020 based on values of similar properties. (!!) During the preparation of the financial statements it was discovered that an old warehouse next to a river, which Linton Ltd had purchased during 2019 for 500,000, contained asbestos. The asbestos would likely make the warehouse unsellable and presented a risk to those who live nearby. The Health and Safety Executive has required that Linton Ltd remove the asbestos within two weeks at an estimated cost of 150,000, or face prosecution under their legal powers. Because this issue was discovered after the financial year-end, the directors propose to deal with this issue as part of the year-ended 30 June 2022. (iii) On 1 July 2020, BFH Restaurants started developing two new vegan products in-house: Product 1 and Product 2. The following costs have been incurred on the projects for the year ended 30 June 2021: Research into product development: 210,000 Development costs: Product 1 Product 2 Advertising of Product 1 Staff training on Product 2 72,000 50,000 20,000 12,000 Sales of Product 1 commenced on 1 April 2021 and it is expected that the product will have useful life of three years, with no residual value. Product 2 is still being developed at the year end (iv) Thorn Gardening Ltd has a marketing campaign which is about to be launched in preparation for the summer. The intention is to sell a petrol lawn mower with a free hedge trimmer and a service agreement lasting two years from the date of purchase. Each package will cost 390 and the full amount is payable immediately. If purchased individually, the following prices are chargeable: Lawn mower Hedge trimmer Service agreement 430 100 70