Question 1 Analyze the authentic accounting scenarios 2.1 and 2.2 given below. Exercise your professional judgment and a

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Question 1
Analyze the authentic accounting scenarios 2.1 and 2.2 given
below. Exercise your professional judgment and apply specific
regulations of the appropriate accounting standard(s) to solving
the recognition, measurement, and financial reporting questions.
Refer to the of the appropriate IFRS/IAS. Provide all the necessary
calculations.
1.1.
The company XYZ bought property for OMR 600,000 on 1 January
2017. The land element of the purchase was OMR 100,000. The
expected life of the building was 30 years and its residual value
nil. On 31 December 2019, the property was revalued to OMR 700,000,
of which the land element was OMR 124,000 and the building – OMR
576,000. On 31 December 2020, the property was sold for OMR
680,000.
REQUIRED:
What would be reported in the Statement of Comprehensive Income
(Statement of Profit and Loss) for the year ended 31 December 2020
– the gain or loss on disposal?
1.2.
The Sohar Development Company has incurred the following costs
in relation to a unit of inventory (in OMR):
Raw materials cost 15.00
Import duties 4.00
Direct Labor 5.00
Subcontracted labour costs 8.00
VAT tax 2.00
Storage costs. 0.50
Production overheads (per unit). 0.25
With the first batch of items produced, it was found out that
the quality of the materials was unsatisfactory. Abnormal wastage
costs of OMR 1.00 per unit have also been incurred by Sohar
Development Company.
REQUIRED:
At what cost should Sohar Development Company disclose this
inventory in its financial statements?