Haldane Ltd. prepares its financial statements to 31 March each year. The company operates as a homeware retailer with retail outlets in many cities throughout the UK and some international locations. Most of the shops are rented but some sites in the major UK cities are owned by the company and are included in property, plant and equipment. The company applies International Financial Reporting Standards and uses the cost model for the measurement of buildings.

On 1 June 2020, the company appointed an agent to actively market the sale of one of its shops in Glasgow. The shop will continue to operate but as soon as a buyer is found, the existing inventory will be moved to another shop in the city. Management expect that the sale will be completed by the end of May 2021.

The following additional information relating to this property is available:

1 June 2020:

Building carrying amount 430,000 Fair value less costs to sell 410,000

31 March 2021:

At the year-end the property remained unsold but strict planning regulations that previously applied to the building have been relaxed. This resulted in a revised independent valuation, based on the selling price of a similar property on the same street, of 455,000.

10 May 2021:

The building sale was completed on 10 May 2021 and the sale proceeds after selling costs totalled 463,000.

REQUIRED:

Explain how Haldane Ltd. will account for this building, including any reasons or assumptions you make in arriving at this treatment and calculating any impairment losses or gains that should be recognised:

- when the building is first put on the market on 1 June 2020

- at 31 March 2021, clearly stating the amounts that will appear on the Statement of

Comprehensive Income and Statement of Financial Position at that date

- at the date of sale on 10 May 2021 to record the disposal of the building.