Omega Ltd question

The following items of property plant and equipment were included in the records of Omega Ltd 1^st February 2020:

	Cost	Accumulated Depreciation	Carrying amount
Land and Buildings	468,000	-	468,000
Plant and Machinery	352,000	198,400	153,600
Fixtures and fitting	175,000	68,700	106,300
Motor and Vehicles	120,000	82,000	38,000

During the year ended 31^st January 2021 the following occurred: -

1. The charge depreciation on buildings at 2% per annum. Buildings represent 348,000 of the amount at 1^st Feb 2020. The buildings were bought new on 1^st Feb 2020.

2. An item of plant costing 88,000 on 1^st July 2018 is now recognised as having a useful life of only five years in total.

3. New plant was acquired for 100,000 on 1^st August 2020 and the company received a government grant of 20,000 towards the cost. The company uses the deferred credit method in accounting for government grants.

4. On 30^th September 2020 a vehicle which was originally purchased for 19,000 during the year ended 31^st January 2019 was traded in at a value of 13,000 against a new model costing 28,000.

5. Fixtures which had cost 22,000, and were fully depreciated, were scrapped in November 2020.

6. During November 2020 the company incurred expenditure of 85,000 on developing projects which are considered technically feasible and commercially viable, the project is still under development at year end.

The following is relevant:

1. The companys policy for depreciation is to use the straight-line method at the following rates:

Plant &Machinery 10%

Fixtures & Equipment 12 %

Motor Vehicles 20%

2. The company charges a full years depreciation / amortisation in the year of acquisition of a non- current asset and no depreciation in the year of disposal.

REQUIRED

1. Write a report to the directors of Omega Ltd outlining the treatment of each item above as per the relevant international accounting standard and prepare the Schedule of Property, plant and equipment movements and balances for the companys published financial statements for the year ended 31^st January 2021.