You are a financial accountant with a medium sized accountancy practice. Item 3 One of your clients, Willtate Ltd, is preparing its financial statements for the financial year ended 31 October 2021 and has requested your company's During the financial year to 31 October 2021, the company incurred research assistance. Willtate Ltd is a fast-growing manufacturing company which and development costs of 900,000. It is estimated that they will incur a manufactures and distributes office and home desks. You have been asked to further 800,000 in the financial year to 31 October 2022. The project prepare a report for the management of Willtate covering the below: commenced on 1 May 2021 with 1 months research undertaken immediately. On 1 June the company entered the development phase of the project and at PART A the beginning of August the directors deemed the project viable and confirmed it would be profitable towards the end of 2022 . It was confirmed Willtate Ltd prepares its financial statements in accordance with International that the research and development expenditure accrued evenly each month. Financial Reporting Standards (IFRS). As a number of management within Willtate Ltd's policy is to depreciate its property plant and equipment on a Willtate Ltd do not have a financial background, they have asked you to straight line basis at the below rates: provide a background on IFRS's including an outline of the steps involved in the standard setting process. (15 marks) PART B Note that the company charges a full year depreciation/amortisation in the year of acquisition of a non-current asset and no depreciation in the year of disposal. Below are details of the company's property plant and equipment for the financial year ended 31 October 2020: You have been requested to provide a description of the relevant accounting treatment for each of the above items in the financial statements for the year ended 31 October 2021. Reference should be made to the applicable accounting standards and journal entries for each item should be included in the report. (30 marks) You should include the schedule of property plant and equipment to be included in the notes to the financial statements for the year ended 31 October 2021 in the report. Item 1 On 1 March 2021, the company drew down a loan of 3.8m to fund the construction of a new head office. The construction began on the site one (20marks) month later on 1 April 2021 and was substantially complete and available for use by 30 September 2021 . Due to supply chain issues and the delivery of raw materials construction ceased for the full month of August. Interest on the loan is charged at a rate of 6% per annum and the loan is due to be repaid in full in 2026. Item 2 Included in the company's motor vehicles is a delivery van which was sold on 31 August 2021 when its net book value was 12,000. The van was purchased 4 years ago for 60,000. The van was replaced by a brand new van with a value of 70,000 on 30 September 2021. You are a financial accountant with a medium sized accountancy practice. Item 3 One of your clients, Willtate Ltd, is preparing its financial statements for the financial year ended 31 October 2021 and has requested your company's During the financial year to 31 October 2021, the company incurred research assistance. Willtate Ltd is a fast-growing manufacturing company which and development costs of 900,000. It is estimated that they will incur a manufactures and distributes office and home desks. You have been asked to further 800,000 in the financial year to 31 October 2022. The project prepare a report for the management of Willtate covering the below: commenced on 1 May 2021 with 1 months research undertaken immediately. On 1 June the company entered the development phase of the project and at PART A the beginning of August the directors deemed the project viable and confirmed it would be profitable towards the end of 2022 . It was confirmed Willtate Ltd prepares its financial statements in accordance with International that the research and development expenditure accrued evenly each month. Financial Reporting Standards (IFRS). As a number of management within Willtate Ltd's policy is to depreciate its property plant and equipment on a Willtate Ltd do not have a financial background, they have asked you to straight line basis at the below rates: provide a background on IFRS's including an outline of the steps involved in the standard setting process. (15 marks) PART B Note that the company charges a full year depreciation/amortisation in the year of acquisition of a non-current asset and no depreciation in the year of disposal. Below are details of the company's property plant and equipment for the financial year ended 31 October 2020: You have been requested to provide a description of the relevant accounting treatment for each of the above items in the financial statements for the year ended 31 October 2021. Reference should be made to the applicable accounting standards and journal entries for each item should be included in the report. (30 marks) You should include the schedule of property plant and equipment to be included in the notes to the financial statements for the year ended 31 October 2021 in the report. Item 1 On 1 March 2021, the company drew down a loan of 3.8m to fund the construction of a new head office. The construction began on the site one (20marks) month later on 1 April 2021 and was substantially complete and available for use by 30 September 2021 . Due to supply chain issues and the delivery of raw materials construction ceased for the full month of August. Interest on the loan is charged at a rate of 6% per annum and the loan is due to be repaid in full in 2026. Item 2 Included in the company's motor vehicles is a delivery van which was sold on 31 August 2021 when its net book value was 12,000. The van was purchased 4 years ago for 60,000. The van was replaced by a brand new van with a value of 70,000 on 30 September 2021