Question 5 Franks Co is a publicly listed company. Details of Franks Co's non-current assets at 1 October 2019 were: Land and Telecommunications Building Plant licence Total m m m Cost/valuation 336 180 360 876 Accumulated depreciation/amortisation (48) (126) (36) (210) Carrying amount 288 54 324 666 m The additional information provided below is relevant: 1) The land and building were revalued on 1 October 2014 with 96 million attributable to the land and 240 million attributable to the building. At that date the estimated remaining life of the building was 25 years. A further revaluation was not needed until 1 October 2019 when the land and building were valued at 102 million and 216 million respectively. The remaining estimated life of the building at this date was 20 years. 2) Plant is depreciated at 20% per annum on cost with time apportionment where appropriate. On 1 April 2020 new plant costing 54 million was acquired. In addition, this plant cost 6 million to install and commission. No plant is more than 4 years old. 3) The telecommunications licence was bought from the government on 1 October 2018 and has a ten-year life. It is amortised on a straight-line basis. In September 2020, a review of sales of the products related to the licence showed them to be very disappointing. As a result of this review the estimated recoverable amount of the licence at 30 September 2020 was estimated at only 120 million. There were no disposals of non-current assets during the year to 30 September 2020. Required: a) Calculate the carrying amount of the land and buildings at 30 September 2020. [4 marks] b) Calculate the depreciation charge on the plant for the year ended 30 September 2020 (5 marks] c) Calculate the amount of impairment loss on the licence. [5 marks] Question 5 continues on the next page Question 5 continued d) Having revalued its property, Franks Co is required to make certain disclosures in respect of revaluation. Identify whether the following disclosures are required, or not required, in respect of revaluation: The effective date of revaluation. Professional qualifications of the valuer. The basis used to revalue assets. The carrying amount of assets if no revaluation had taken place. . . . [6 marks] [Total 20 marks]