Meg and Teg Limited consists of a chain of muffin outlets that makes and sells muffins to the public. The financial director is finalising the preparation of the financial statements for the year ended $31$ December $2023$ and has identified the following issues for discussion in a meeting with the company$$s IFRS consultant:

a$)$

Costs of R$100000$ estimated to be incurred for relocating a staff member, B$.$ Perle, from the company$$s head office in Durban to Cape Town to set up shop and manage a new store. The staff member will physically relocate during July $2024.(3)$

b$)$

Long$-$service leave, estimated to be R$300000,$ owing to employees in respect of past services. $(7)$

c$)$

Provision of R$150000$ for the replacement of a machine. The replacement is required every four years and the machine was four years old as at $31$ December $2023.(3)$

d$)$

Damages awarded against Meg and Teg Limited resulting from a court case decided on $22$ December $2023.$ The judge has announced that the amount of damages will be set at a future date, expected to be in March $2024.$ Meg and Teg Limited has received advice from its lawyers that the amount of the damages could be anything between R$100000$ and R$30$ million.

$(7)$

$1$

e$)$

An amount of R$550000$ owing to Sugar works Limited for raw materials provided in December $2023.(5)$

Note: The company$$s financial statements are authorised for issue on $24$ February $2024$