Omicron Ltd
 Date: 30 September 2023

Details:

• Raw materials inventory (chemical):
  • Cost: £40,000
  • Replacement cost: £38,000
• Finished goods inventory:

Product	Gamma	Delta
Direct costs	£80,000	£60,000
Proportion of fixed overhead	£20,000	£15,000
Proportion of selling costs	£5,000	£4,000
Net realizable value	£120,000	£85,000

• Office machinery:
   Acquired on 1 October 2017 for £280,000, depreciated over 7 years using the reducing balance method.
• Freehold property:
   Acquired 22 years ago for £1,200,000, land value estimated at £300,000. Buildings are depreciated over 55 years.
• Research and development:
  • Research costs: £70,000
  • Development costs: £90,000, benefiting over 4 years.

Required:
 Determine the appropriate accounting treatment for these items in the financial statements of Omicron Ltd as of 30 September 2023.