Fallback Ltd is renowned for producing world-class medical equipment. Fallback has a 31 August year-end. You have been approached by the newly appointed General Manager, Ms. Haushiku, for advice on IFRS 5 Non-current asset held for sale (NCAHFS). Ms. Haushiku has provided you with the following issues that occurred during the years: Machinery Fallback Ltd owns only one item of machinery, which it has always carried under the cost model, details of which follow: Cost (1 September 2019) - N$500 000 Depreciation 20% pa straight-line to nil residual value Recoverable amount (31 August 2021) N$210 000 On 1 December 2021, the company decided to sell the machinery. All the criteria necessary for the reclassification as a non-current asset held for sale were met on this date. The following information was relevant on this date: Fair Value - N$200 000 Cost to sell N$10 000 Value in use N$160 000 At 31 August 2022 (the companys year-end) the following information was relevant: Fair value N$300 000 Cost to sell N$10 000 All impairments and/or impairment reversals are considered material.

a) Provide a memorandum to the General Manager of Fallback Ltd on the requirements for reclassification as non-current asset held for sale (NCAHS) Communication (Logical flow and format)

b) Prepare the following notes in accordance with International Financial Reporting Standards (IFRS) to be disclosed in Fallback Ltd.s financial statements for the year ended 31 August 2022: 1. Property plant and equipment 2. Non-current asset held for sale Presentation and layout (Comparatives are required)