Top Ltd owns and occupies a large building which is used for warehousing, office and retailing purposes. The land and building were purchased in June 2015. The building was initially recognised at cost of $3 000 000, and depreciated over a period of 25 years, assuming nil residual value. During 2022 the roof of the building was damaged by severe storms and hail stones. During June 2022 Top Ltd engaged Roof Specialists Pty Ltd to repair the roof and install solar panels. Roof Specialists Pty Ltds invoice identified the following cost: $

Remove and dispose of existing roof tiles 80 000

Repairs to guttering and drainpipes 50 000

Roof tiles 300 000

Solar panels 600 000

Electrician - installation of solar panels 100 000

Roof spraying (to protect the roof form sun damage) includes 5-year warranty 10 000

1 140 000

Top Ltds chief accountant is on holidays on Kangaroo Island and is unable to be contacted. The graduate accountant has been left in charge but is unsure about how to record the invoice. The graduate accountant seeks your advice and asks the following questions.

Question: Describe an accounting policy to account for the transaction with Roof Specialists Pty Ltds, including the subsequent accounting treatment of any asset affected by the transaction. Do not justify your policy. (20 - 80 words)