The information pertain to property, plant and equipment of Harpic Power Limited (HPL) for the year ended 30 June 2022 is as follows: 1. *An amount of Rs. 10 million had been charged to profit or loss upon previous revaluation 2. On 30 June 2022, the revalued amounts of the land and buildings were assessed by Savvy Consultant at Rs. 130 million and Rs. 39 million respectively. 3. Setting up of a new plant was commenced on 1 July 2021 and substantially completed on 29 February 2022. The plant was available for use on 1 May 2022 and immediately put into use. Useful life of the plant was estimated at 10 years. Details of the cost incurred are as under: The cost of the plant was financed through an existing running finance facility with a limit of Rs. 200 million carrying mark-up of 14% per annum. A government grant of Rs. 20 million related to the plant was received on 1 January 2022 . The grant amount was used for repayment of the running facility. 4. One of the vehicles had an engine failure on 1 January 2022 and its engine had to be sold as scrap for Rs. 0.1 million. The vehicle had been acquired on 1 January 2020 at a cost of Rs. 2.5 million. Page 2 of 3 Assignment 40% of the cost is attributable to its engine. Though the engine of similar capacity was available at a cost of Rs. 1.2 million, the old engine was replaced on 1 January 2022 with a higher capacity engine at a cost of Rs. 1.8 million. 5. HPL uses cost model for subsequent measurement of property, plant and equipment except for land and buildings. 6. HPL accounts for revaluation on net replacement value method and transfers the maximum possible amount from revaluation surplus to retained earnings on an annual basis. 7. HPL deducts government grant in arriving at the carrying amount of the asset. Required: In accordance with IFRSs, prepare a note on 'Property, plant and equipment' for inclusion in HPL's financial statements for the year ended 30 June 2022.(Comparatives figures and column for total are not required). The information pertain to property, plant and equipment of Harpic Power Limited (HPL) for the year ended 30 June 2022 is as follows: 1. *An amount of Rs. 10 million had been charged to profit or loss upon previous revaluation 2. On 30 June 2022, the revalued amounts of the land and buildings were assessed by Savvy Consultant at Rs. 130 million and Rs. 39 million respectively. 3. Setting up of a new plant was commenced on 1 July 2021 and substantially completed on 29 February 2022. The plant was available for use on 1 May 2022 and immediately put into use. Useful life of the plant was estimated at 10 years. Details of the cost incurred are as under: The cost of the plant was financed through an existing running finance facility with a limit of Rs. 200 million carrying mark-up of 14% per annum. A government grant of Rs. 20 million related to the plant was received on 1 January 2022 . The grant amount was used for repayment of the running facility. 4. One of the vehicles had an engine failure on 1 January 2022 and its engine had to be sold as scrap for Rs. 0.1 million. The vehicle had been acquired on 1 January 2020 at a cost of Rs. 2.5 million. Page 2 of 3 Assignment 40% of the cost is attributable to its engine. Though the engine of similar capacity was available at a cost of Rs. 1.2 million, the old engine was replaced on 1 January 2022 with a higher capacity engine at a cost of Rs. 1.8 million. 5. HPL uses cost model for subsequent measurement of property, plant and equipment except for land and buildings. 6. HPL accounts for revaluation on net replacement value method and transfers the maximum possible amount from revaluation surplus to retained earnings on an annual basis. 7. HPL deducts government grant in arriving at the carrying amount of the asset. Required: In accordance with IFRSs, prepare a note on 'Property, plant and equipment' for inclusion in HPL's financial statements for the year ended 30 June 2022.(Comparatives figures and column for total are not required)