Question 3 (36 marks) Titanium Ltd is a company that distributes sport equipment and was incorporated on 1 January 2019 The following information relates Titanium Ltd:

Titanium Ltd EXTRACT FROM TRIAL BALANCE ON 01 JANUARY 2020
DEBIT N$	CREDIT N$
Land and Buildings (at cost)	1 000 000
Office equipment (at cost)	420 000
Accumulated depreciation on office equipment	70 000
Vehicles (at cost)	220 000
Accumulated depreciation on vehicles	49 500
Titanium Ltd EXTRACT FROM ACCOUNTING POLICY
Property, Plant and Equipment
Asset	Measuremen t model	Depreciation (method)	Depreciatio n (write-off period)	Expected residual value
Land & buildings	Revaluation	Not applicable	Not applicable	Not applicable
Office equipment	Cost	Straight-line	6 years	None
Vehicles	Cost	Straight-line	4 years	10% of cost

Additional information: 1. Land and Buildings were originally purchased on 01 January 2019 and have never been revalued. The company appointed a sworn appraiser, Aron Nandago, on 30 November 2020 to perform a revaluation. On this date, Aron estimated the fair value of the building at N$ 1 300 000. 2. All office equipment was purchased on 1 January 2019. During the current year, the company became aware that equipment with an original cost of N$ 120 000 is no longer used. This equipment was sold on 30 June 2020 for N$ 80 000. 3. The companys role delivery vehicle was also purchased on 01 January 2019. The rapid expansion of the companys operations resulted in the need for an additional vehicle. The new vehicle was purchased on 1 October 2020 for N$ 253 000. Required: 1. Prepare the extracted statement of financial position as at 31 December 2020, showing only the property plant and equipment. Comparative figures are required. (9 marks) 2. Prepare the following notes for the year ended 31 December 2020 (18 marks) 2.1 Basis of presentation 2.2 Summary of significant accounting policies for property, plant and equipment 2.3 Property, plant and equipment 3. What is the purpose of disclosing significant accounting policies in the preparation of financial statements and how does it affect past performances and present position of a company? (9 marks)