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 Page 13 of 24 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)