Upsilon Ltd
 Date: 30 June 2024

Details:

• Raw materials inventory (cotton):
  • Cost: £34,000
  • Replacement cost: £32,000
• Finished goods inventory:

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

• Machinery:
   Acquired on 1 July 2017 for £340,000, depreciated over 10 years using the reducing balance method.
• Freehold property:
   Acquired 18 years ago for £3,200,000, land value estimated at £750,000. Buildings are depreciated over 60 years.
• Research and development:
  • Research costs: £790,000
  • Development costs: £1,430,000, benefiting over 5 years.

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