Newcastle Ltd is a steel merchant based in Mansa. The company's business is to supply steel products to manufacturing and construction industries in Harare and nearby towns. The following is an extract from the fixed asset register of Newcastle Ltd on 31 December 2014. During the year ended 31 December 2014, the company purchased a furnace to commence the manufacture steel products from bulk steel ingots. The company therefore ceased to be a wholesaler of processed steel products to become a manufacturer of processed steel products. Additional information 1 The useful life of the furnace is an output of 1000000 tonnes of steel products. Included in the purchase price of the furnace is K 500000 for the cost of the furnace's lining. The furnace lining has to be replaced every 5 years. 2 Industrial cast mold-sets were purchased separately at a cost of K250 000 from the supplier of the furnace on 1 January 2014. The industrial cast mold sets can only be used with the furnace according to specifications made to the company's order and are expected to last the useful life of the furnace. 3 In a bid to improve the company's cash position, a portion of land with a cost of K150 000 was sold on 1 March 2014 for K120 000. 4 A new warehouse building was constructed on the company's premises. The costs of construction of the warehouse building were as follows. Wastage was estimated to be 10% of the total cost of construction of the warehouse building. The warehouse building was brought into use as intended by management on 1 October 2014. The warehouse building was yet to be reflected in the fixed asset register. The expected useful life of the warehouse building was 10 years. 5. The fleet of motor vehicles was purchased from Quest Motor Company on 30 June 2013. Delivery of the motor vehicles to Newcastle Ltd was done in 31 August 2013. Payment for the motor vehicles was done on 31 December 2013 with a loan facility from ABC Bank payable over 36 months at an interest rate of 12.5% per annum. 6. A revaluation of land and buildings at fair value was done on 31 December 2014 . The value of land was revalued to K2 300000 and that of buildings to K2 500000 . 7. During the year ended 31 December 2014 an output of 68000 tonnes of steel products were produced from the furnace. REQUIRED| Disclose the above information in the statement of financial position and notes to the financial statements of Newcastle Ltd for the year ended 31 December 2014. Base your answer on IAS 16