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| Jupiter Jupiter is a manufacturing company with interests in the manufacture of kitchen appliances for the retail market and heavy engineering. The draft financial statements for the year ended 31 March 20X0 are about to be finalised. Two items have been noted for discussion with the auditors to determine their treatment in the final accounts. The group financial accountant has asked you to write a report explaining the best accounting treatment for these items. Jupiter made a profit for the year in the year under review of $34 million on total assets of $116 million.(i) A small rented factory specialising in the production of electric tin openers was closed during the year at a cost of $1.7 million. A reorganisation of the factory which produces microwaves to cut labour costs has resulted in redundancies costing $1 million during the year. The factory is owned by Jupiter and a report was received on 1 May 20X0 from a professional valuer indicating that the value of the factory had fallen $4 million below its current carrying value. (5 marks) |