Assignment Details: CICI Ltd question

The following items of property plant and equipment were included in the records of CICI Ltd 1. February 2019:

During the year ended 31st January 2020, the following occurred: –

• Buildings represent €348,000 of the amount in Feb 2019. The buildings were bought new on la Feb 2019.
• On the 1st February 2019, an item of a plant costing €88,000 on 1st July 2017 is now recognized as having a useful life of only five years in total.
• A new plant was acquired for €100,000 on l August 2019 and the company received a government grant of €20,000 towards the cost. The company uses the deferred credit method in accounting for government grants.

• On 30th September 2019, a vehicle that was originally purchased for €19,000 during the year ended 31st January 2018 was traded in at a value of €13,000 against a new model costing €28,000.
• Fixtures which had cost €22,000, and were fully depreciated, were scrapped in November 2019.
• During November the company incurred an expenditure of €85,000 on developing projects which are considered technically feasible and commercially viable.

The following is relevant:

1. The company’s policy for depreciation is to use the straight-line method at the following rates:

1. The company charges a full year’s depreciation/amortization in the year of acquisition of a non- current asset and no depreciation in the year of disposal.

Requirement:

Write a report to the directors of Cici Ltd outlining the treatment of each item above as per the relevant international accounting standard and prepare the extracts for the company’s published financial statements for the year ended 31st January 2020.