The following balances were extracted from the trial balance of Bell Crest Ltd on 30 June 2020:

 Additional  information R

 Land at cost - 800 000 

 Buildings at cost -1 200 000

 Plant and machinery at carrying amount (1 July 2019)- 2 100 000

 Furniture and equipment at cost - 600 000

 600 000  - Accumulated depreciation on furniture and equipment  (1 July 2019) - (120 000)

Additional information:
1. Bell Crest Ltd owns property in Germiston, situated on stand 50, that it occupies for its own business purposes. The land and buildings were acquired on 1 August 2016. The building is depreciated over 20 years. Mr. Blog an experienced independent sworn appraiser determined that the fair value of the land obtained on 1 August 2016 to be R850 000 on 1 October 2019.

All of the net replacement values and fair values were determined by Mr Blog an independent sworn appraiser. Mr Blog had recent experience in the location and category
of the property being valued. The values were determined with reference to net current market prices on an arm’s length basis of similar properties in similar areas.

2. On 1 September 2019, additional land was purchased at a cost of R700 000 in Germiston on stand 55, for use for its own business purposes. From 1 August 2019 Bell Crest Ltd withdrew some of its plant and machinery costing R500 000 to be used in the construction of the building. The building was completed and ready for use on 1 November 2019. The following expenses were incurred in the construction of the building:

• Labour costs R850 000
• Material R425 000

The newly constructed building had an estimated useful life of 25 years. 

Plant and machinery with a carrying amount of R1 000 000 at the beginning of the current financial year was withdrawn completely from use on 1 September 2019 after health inspectors prohibited the use of the plant due to irreparable pollution problems it may cause.

3. All plant and machinery was acquired on 1 July 2017.

4. No transactions took place for furniture and equipment during the current financial year.

The following rates of depreciation are applicable:
‐ Plant and machinery at 25% per annum according to the reducing balance method
‐ Furniture and equipment at 10% per annum on the straight-line method

6. Bell Crest Ltd is a registered VAT vendor.

Required

Prepare only the Property, plant and equipment note in the financial statements of Bell Crest Ltd  for the year ended 30 June 2020 in compliance with International Financial Reporting Standards  (IFRS).