Upsilon Ltd
 Date: 30 April 2024

Details:

• Raw materials inventory (synthetics):
  • Cost: £45,000
  • Replacement cost: £43,000
• Finished goods inventory:

Product	Omicron	Pi
Direct costs	£70,000	£60,000
Proportion of fixed overhead	£18,000	£16,000
Proportion of selling costs	£5,000	£4,500
Net realizable value	£110,000	£90,000

• Machinery:
   Acquired on 1 May 2017 for £330,000, depreciated over 9 years using the reducing balance method.
• Freehold property:
   Acquired 16 years ago for £2,700,000, land value estimated at £700,000. Buildings are depreciated over 60 years.
• Research and development:
  • Research costs: £550,000
  • Development costs: £950,000, benefiting over 7 years.

Required:
 Explain the accounting treatment for these items in Upsilon Ltd's financial statements for the period ending 30 April 2024.