On 1 January 2017, Rodriquez plc purchased a factory for 5,000,000. It was decided to depreciate the property over ten years on a straight-line basis assuming no residual value. The property is re-valued annually. At the end of 2017 and 2018, the property had estimated sale values of 5,400,000 and 3,800,000 respectively.

Requirement

Explain, showing relevant calculations, how the property should be accounted for in Rodriquez plcs financial statements the years ended 31 December 2017 and 2018.