The following list of balances is an extract from the trial balance of Still Sands Ltd on 30 June 2022: Land at cost (refer to note 1.2) ..................................................................... R1 500 000 Buildings at cost (refer to note 1.2) .............................................................. R2 400 000 Machinery at carrying amount (refer to note 1.1) ......................................... R3 460 000 Furniture and equipment at cost (1 July 2021) (refer to note 1.3) ................ R900 000 Accumulated depreciation: - Furniture and equipment (1 July 2021) (refer to note 1.3) ....................(R90 000) Retained earnings (1 July 2021) ..................................................................(R200 000) Trade and other receivables ........................................................................ R750 000 Inventories ................................................................................................... R925 000 Investments at cost (refer to note 2) ............................................................ R76 000 Cash and cash equivalents ....................................................................... R550 00 Additional information: 1. The following information regarding property, plant and equipment and investment property is available: 1.1 Machinery amounting to R900 000 was purchased on 30 June 2022. All other machinery was purchased on 1 July 2020. The company provides for depreciation on machinery at 20% per annum using the reducing balance method. 1.2 Land and buildings consist of a factory building and offices situated on Erf 413, Greenhill Park Tshwane and is owner occupied. The building was ready for use and occupied on 1 August 2018 and is depreciated over its estimated useful life of 20 years. On 1 July 2021, Mr Acer, a sworn appraiser, revalued the land at a fair value of R2 000 000. 1.3 On 30 September 2021, equipment with a cost price of R280 000 that was depreciated by R28 000 at the beginning of the current financial year, was traded in for new equipment costing R320 000. The new equipment has a residual value of R50 000. The residual values of all the other furniture and equipment are R nil. 1.4 On 1 July 2021, Still Sands Ltd acquired land at a cost of R700 000, and the building thereon at a cost of R800 000. Improvements to the floor space of the building amounted to R300 000 for the year. Repairs and maintenance costs to the building amounted to R100 000. The building will be used to generate rental income. On 30 June 2022, Mr Acer revalued the land at fair value at an amount of R750 000 and the building at R1 100 000.

The investment property is not included in the list of balances from the trial balance given above. 2. Investments consist of the following: - 20 000 Ordinary shares in Oak Lands Ltd purchased at R2,00 per share, for speculation purposes. The total share capital of Oak Lands Ltd consists of 80 000 ordinary shares and each share carries one vote. The fair value of these shares was R3,50 per share on 30 June 2022. - 12 000 Ordinary shares of R3,00 each in Sun World Ltd who has a total ordinary share capital of 60 000 shares. The fair value of each share was R2,50 per share on 30 June 2022. These shares are classified as a financial asset at fair value through other comprehensive income. 3. The following is an extract of the accounting policies of Still Sands Ltd: - Owner-occupied land is accounted for in accordance with the revaluation model. Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from the fair value at year-end. - Buildings, machinery, furniture and equipment are accounted for in accordance with the cost model. - Owner-occupied buildings are depreciated over the estimated useful life of 20 years. - Depreciation on machinery is accounted for at 20% per annum according to the reducing balance method. Depreciation on furniture and equipment is accounted for at 10% per annum using the straight-line method. - Still Sands Ltd chooses to adopt the fair value model for all its investment property. Gains and losses from changes in the fair value of the investment property are recognised in the profit or loss section of the statement of profit or loss and other comprehensive income, in the period in which they arise. 4. All amounts are material. REQUIRED: a) Prepare the Property, plant and equipment note and the Investment property note to the annual financial statements of Still Sands Ltd as at 30 June 2022 in compliance with International Financial Reporting Standards (IFRS).( 32 MARKS) b) Prepare the Asset section of the Statement of Financial Position of Still Sands Ltd as at 30 June 2022 in compliance with International Financial Reporting Standards (IFRS).( 8 MARKS)