(a)[3]
State the way in which a recoverable amount is found.
(b)[3]
Calculate the impairment loss that arises.
(c)[2]
Explain whether the impairment loss should be treated as an adjusting or a non-adjusting event for the statement of financial position at 31 December 2020.
(d)[9]
Produce an extract from the statement of financial position at 31 December 2020 showing the non-current assets section.
(e)[3]
Calculate the amount of the revaluation reserve arising during the year ended 31 December 2020.
(f)[2]
Explain how the creation of the revaluation reserve changes the directors’ ability to pay dividends.
(g)[3]
Advise the directors on whether development costs ought to be capitalised. Support your answer.