Short questions. Show your workings.

a$.$ Carriageways Co had the following bank loans outstanding during the whole of $2023$ which

form the company$$s general borrowings for the year:

$$m

$9\%$ loan repayable $20$X$915$

$11\%$ loan repayable $20$Y$224$

b$.$ Carriageways Ltd began construction of a qualifying asset on $1$ April $2023$ and withdrew

funds of $6$ million on that date to fund the construction. On $1$ August $2023$ an additional

$2$ million was withdrawn for the same purpose.

Required:

Calculate the borrowing costs which can be capitalised in respect of this project for the

year ended $31$ December $2023.$

c$.$ Wetherby Plc purchased a machine on $1$ July $2022$ for $500,000.$ It is being depreciated

on a straight$-$line basis over its useful life of ten years. Residual value is estimated at

$20,000.$ On $1$ January $2023$ following change in legislation Wetherby Co fitted a safety

guard to the machine. The safety guard cost $25,000$ and has a useful life of five years

with no residual value.

Required:

What amount will be charged to profit or loss for the year ended $31$ March $2023$ in respect

of depreciation on this machine? $($Calculate your answer to the nearest whole $)$

d$.$ Assoria Plc has $20$ million of capitalised development expenditure at cost brought forward

at $1$ October $2022$ in respect of products currently in production. A new project began on

$1$ October $2022.$

The research stage of the new project lasted until $31$ December $2022$ and incurred $1\mathrm{.}4$

million of costs. From that date the project incurred development costs of $800,000$ per

month. On $1$ April $2023$ the directors of Assoria Co became confident that the project would

be successful and yield a profit well in excess of costs. The project was still in development

at $30$ September $2023.$ Capitalised development expenditure is amortised at $20\%$ per

annum using the straight$-$line method.

Required:

What amount will be charged to profit or loss for the year ended $30$ September $2023$ in

respect of research and development costs?

e$.$ At $30$ September $2023$ Sandown Ltd$$s trial balance showed a brand at a cost of $30$ million

less accumulated amortisation brought forward at $1$ October $2022$ of $9$ million.

Amortisation is based on a $10-$year useful life. An impairment review on $1$ April $2023$

concluded that the brand had a value in use of $12$ million and a remaining useful life of

three years. However, on the same date Sandown Co received an offer to purchase the

brand for $15$ million.

Required:

What should be the carrying amount of the brand in the statement of financial position of

Sandown Ltd as at $30$ September $2023.($Enter your answer to the nearest $000)$

f$.$ Dempsey Ltd$$s year end is $30$ September $2023.$ Dempsey Ltd commenced the

development stage of a project to produce a new pharmaceutical drug on $1$ January $2023.$

Expenditure of $40,000$ per month was incurred until the project was completed on $30$

June $2023$ when the drug went into immediate production. The directors became confident

of the project$$s success on $1$ March $2023.$ The drug is expected to generate benefits for $5$

years.

Required:

What is the carrying amount of any intangible asset recognised in respect of the project at

$30$ September $2023$ and what is the total amount Dempsey Ltd will charge to profit or loss

for the year ended $30$ September $2023?$

g$.$ A cash$-$generating unit comprises the following assets:

$000$

Building $700$

Plant and equipment $200$

Goodwill $90$

Current assets $20$

$1,010$

Following an impairment review it was discovered that an item of plant carried at $40,000$

is damaged and will have to be scrapped. The recoverable amount of the cash$-$generating

unit is estimated at $750,000.$

Required:

What will be the carrying amount of the building after the impairment loss has been

recognised $($to the nearest $000).$

h$.$ Lichen Plc owns a machine that has a carrying value amount of $85,000$ at the year$-$end

of $31$ March $2023.$ Its market value is $78,000$ and costs of disposal are estimated at

$2,500.$ A new machine would cost $150,000.$ Lichen Plc expects it to produce net cash

flows of $30,000$ per annum for the next three years. The cost of capital of Lichen Plc is

$8\%.$

Required:

What is the impairment loss on the machine to be recognised in the financial statements

at $31$ March $2023($Enter your answer to the nearest whole $).$

i$.$ On $1$ January $2023$ Fellini Co entered into a contract for the right to use a machine for a

four$-$year period. The contract meets the definition of a lease under IFRS $16$ Leases. Fellini

Co paid a deposit of $700,000$ on the commencement of the lease on $1$ January $2023$ and

a further $3$ instalments of $700,000$ are payable annually in advance. The present value

of the future lease payments was $1,871,100$ on commencement of the lease. The interest

rate implicit in the lease is $6\%.$

Required:

What amount will appear under non$-$current liabilities in respect of this lease in