Janey Limited prepares its financial statements to 31 December each year, and the following issues need to be resolved before the financial statements for the year ended 31 December 2020 can be finalised: Issue 1: Janey Limited acquired a property on 1 January 2014 for 5,000,000. On this date, the property had an estimated useful economic life of 50 years with no residual value. The directors of Janey Limited decided to apply the cost model to measure the property and to depreciate it on a straight-line basis. Janey Limited time apportions depreciation in the years of purchase and disposal. On 31 December 2020, the directors of Janey Limited decided that it would be more appropriate to use the revaluation model for measuring the property as this would provide more relevant and reliable information. The fair value of the property was estimated to be 6,250,000 on this date. Requirement Explain clearly how the property should be reflected in the financial statements of Janey Limited in each of the financial years ended 31 December 2014 to 2020, showing any adjustments required. 8 Marks Issue 2: Janey Limited commenced construction of a new property on 1 January 2020 at a total cost of 4,000,000. In order to finance the cost of the construction, the company borrowed 5,000,000 on 1 January 2020 at an interest rate of 12% per annum. During the period 1 March to 31 May 2020, no construction took place due to a strike by the workers. Construction recommenced on 1 June 2020 and was completed on 30 November 2020. The property was available for use on 1 January 2021. During 2020, all loan interest was expensed to the statement of profit or loss and other comprehensive income as incurred. The company intends to repay the loan on 30 September 2021. Issue 2: Janey Limited commenced construction of a new property on 1 January 2020 at a total cost of 4,000,000. In order to finance the cost of the construction, the company borrowed 5,000,000 on 1 January 2020 at an interest rate of 12% per annum. During the period 1 March to 31 May 2020, no construction took place due to a strike by the workers. Construction recommenced on 1 June 2020 and was completed on 30 November 2020. The property was available for use on 1 January 2021. During 2020, all loan interest was expensed to the statement of profit or loss and other comprehensive income as incurred. The company intends to repay the loan on 30 September 2021. Requirement Explain clearly, showing any adjustments required, whether Janey Limited accounted for the interest costs in accordance with extant international accounting standards. 7 Marks Issue 3: On 1 January 2020, Janey Limited entered into a four-year contract to lease a machine. The annual lease payments are 18,000, payable in arrears on 31 December each year. The interest rate implicit in the lease is 10%. There were no initial direct costs. The first lease instalment was paid on 31 December 2020. Janey Limited calculates depreciation on a straight-line basis and the machine is expected to have no residual value at the end of the lease term. Requirement Based upon the information provided above in relation to the leased machine, prepare extracts for the financial statements of Janey Limited for the year ended 31 December 2020 in accordance with IFRS 16 Leases