Furthermore Zambezi Ltd adopted a policy of valuing their plant every two years according to net replacement value. On 31st December, 2013, Valuators determined that the gross replacement value of Zambezi Ltd 's plant is $18,000,000 , amd the plant has a remaining life of 8 years. At 31st December, 2013, the cost of plant reflected in the books of account is $10,000,000 and accumulated depreciation at $200,000. The original expected life of the plant was 10 years, with no residual value.

Required

Write a report to the managing director outlining recommendation on the accounting and disclosure for the above matter as they relate to the year 2013 financial statements.

Your answer should refer to the relevant definitions and the necessary legal and accounting requirements.