Question 3 a. YDA Ltd prepares financial statements under International Financial Reporting Standards (IFRSS). On 1 January, 2020, YDA Ltd acquired a PPE at the cost of GH1, 500,000. The asset is estimated to have a useful economic life of 10 years with no residual value. It incurred GHc 50,000 in moving the asset to a new location and paid for GHC 40,000 to a technician to calibrate the asset. The asset is expected to generate more revenue for the entity through future economic benefits. YDA Ltd intends to adopt the revaluation model under IAS 16 to revalue the asset at the end of each year. As at 31st December, 2020, an independent valuer revalued the asset to be worth GHc 3million Required: i. ii. State the recognition criteria for the cost of Property, Plant and Equipment as per IAS 16. (3 marks) In accordance with IAS 16, explain how to account for the above transaction for the year ended 31st December, 2020. iii. State two (2) items that could be disclosed under IAS 16. (5 marks) (2 marks) b. A dresser that was made in line with a customer's own specifications and cost the company GHc 4,500 to make. Unfortunately, the customer went bankrupt and could not purchase the item. Due to the unusual design the dresser was not easy to sell. The company sold the dresser for GHc 2,800 but incurred commission costs on the sale of GHc 150 and delivery costs of GHc 158. 2