You are the financial controller of Delta Ltd$.$ The directors of Delta Ltd receive a bonus if earnings per share is higher than $4\mathrm{.}5$ pence. The financial accountant has prepared the following extracts from the draft financial statements for the year ended $31$ December $2023$:

$000$

Profit for the year $1,200$

Ordinary share capital $(0\mathrm{.}50$ shares$)10,000$

The financial accountant has asked for your help with the following matters which have already been posted to the draft financial statements following instructions provided by the finance director:

$(1)$ IFRS $15$: Revenue from contracts with customers: On $1$ October $2023,$ Delta Ltd signed a contract with a customer which is to be treated as a single performance obligation satisfied over time as follows:

$000$

Total contract price $300$

Costs incurred to $31$ December $202350$

Estimated further costs of completion $200$

Value of units delivered to the customer $30$

The financial accountant debited trade receivables and credited revenue for the total contract price of $300,000.$

$(2)$ IAS $16$: Property, plant and e quipment: Delta Ltd uses the cost model for land and buildings. On $31$ December $2023,$ the finance director estimated that land, with a cost of $700,000$ should have a fair value of $750,000.$

The financial accountant debited land and credited other income in the statement of profit or loss for the increase in value.

$(3)$ IAS $38$: Intangible assets: During the year ended $31$ December $2023,$ Delta Ltd spent $100,000$ on consultancy fees to investigate new materials for products.

The financial accountant debited development costs in the statement of financial position and credited bank for the full amount of the consultancy fees.

The financial accountant charged $20\%$ of the consultancy fees as amortisation during the year ended $31$ December $2023.$

$$

REQUIRED:

By referring to the IASB Conceptual Framework for Financial Reporting and relevant IFRS accounting standards, analyse the financial reporting treatment used by Delta Ltd for items $(1),(2)$ and $(3).$ As part of your answer you should:

$-$ Make reference to elements and qualitative characteristics of financial information set out by the IASB Conceptual Framework for Financial Reporting.

$-$ Discuss the accounting treatments required by relevant IFRS accounting standards. Explain any assumptions you make.

$-$ Prepare relevant calculations.

$-$ Discuss the impact on earnings per share.