Rehman & co bought a machine on 31 December 2015 that it intended to keep for 10 years. It cost Rs. 30,000. Before the machine could be brought into use, it had to be tested: this cost Rs. 5,000. During the testing process, 1,000 widgets were produced, which were all sold immediately at Rs. 10 each. IAS 16 (paragraph 17) requires that the cost of the asset be calculated after deducting net proceeds from selling any items produced when testing.

Required: Disclose the machine in the statement of financial position as at 31 December 2015. This is the only item of property, plant and equipment owned by the entity.