Swift Limited $($Swift$)$ is a customer fulfilment and distribution company that provides the logistics processes $($such as

order picking, processing, packaging and shipping$)$ needed to get a product from a seller to its customer.

On $1$ July $2013,$ Swift purchased a new warehouse near the rail freight terminal in Brisbane. This location will help

better service the northern parts of Australia by offering quick and easy rail distribution services.

Relevant details of the warehouse are as follows:

The purchase price was $$8$ million, paid on $1$ July $2013.$

Swift uses the cost model in IAS $16$ Property, Plant and Equipment.

The warehouse is depreciated on a straight$-$line basis over $16$ years.

$30$ June $2020$

On $30$ June $2020,$ the government proposed to relocate the rail freight terminal to a different part of Brisbane, where it

could service the waterfront port more efficiently. The relocation would result in increased costs for Swift to travel from

its current location to the new rail terminal.

The following information relates to Swift's measurement of the warehouse's recoverable amount at $30$ June $2020$:

Swift recognised a $$500,000$ impairment loss. Following this impairment, the warehouse was assessed to have a

remaining useful life of nine years.

$30$ June $2024$

On $30$ June $2024,$ the government decided to retain the existing rail freight terminal next to Swift's warehouse, rather

than proceed with its relocation proposal. In addition, it approved a new, high$-$speed railway service that promises to

link Brisbane to other major cities, reducing the commute time between them. Swift's warehouse is very well located to

take advantage of the new, high$-$speed railway, which will allow Swift to better service its customers.

Details of the warehouse at $30$ June $2024$ are:

You are the financial accountant at Swift, and you report to Bhavin Kapoor, the financial controller. Following the

government's decision to retain the existing rail freight terminal, you organise a meeting with Bhavin to discuss the

measurement of the recoverable amount of Swift's warehouse.

You would like to engage the external valuers who assisted Swift in valuing the warehouse previously in $2020.$ Bhavin

explains that there are no indications that the value of the warehouse is impaired and, therefore, it is not necessary to

measure the recoverable amount at $30$ June $2024.$

Bhavin is a Chartered Accountant.

Required

$($a$)$ Identify and explain the key fundamental principle of the International Code of Ethics for Professional Accountants at risk for Bhavin Kapoor at $30$ June $2024.$

$($b$)$ Assume that the recoverable amount of the warehouse is measured at $30$ June $2024$ to be $$2,750,000.$ Prepare the unrecorded journal entry in relation to the warehouse for the year ended $30$ June $2024.$ Show your workings. Ignore the impact of tax.

$($c$)$ Assume at $30$ June $2024$ that the useful life of the warehouse is revised to seven years, from its current five year remaining useful life. Explain, with reference to the relevant accounting standard, the impact of this revision, if any, on the financial statements at $30$ June $2024.$ Ignore the impact of tax and assume that the useful life revision is material.