]BAC Ltd has the following non-current assets at 1 January 2021.

Accumulated Carrying
Cost depreciation amount
K'000 K'000 K'000
Freehold factory 1,440 144 1,296
Plant and equipment 1,968 257 1,711
Motor vehicles 449 194 255
Office equipment and fixtures 888 583 305
4,745 1,178 3,567

You are given the following information for the year ended 31 December 2021.

1) The factory was acquired on 1 January 2016 and is being depreciated over 50 years.
2) Depreciation on other items is provided on cost on straight-line basis. The rates used are
20% for fixtures and fittings, 25% for cars and 10% for equipment.
3) On 1 January 2021 the factory was revalued on an open market value of K2.2 million and
an extension costing K500,000 became available for use. The directors wish to
incorporate the revaluation into the accounts.
4) The directors decided to change the method of depreciating motor vehicles to 30%
reducing balance to give a more relevant presentation of the results and of the financial
position.
5) Two cars costing K17,500 each were bought on 1 January 2021. Plant and fitting for the
factory extension cost K75,000 and K22,000 respectively.
6) When reviewing the expected lives of its non-current assets, the directors felt that it was
necessary to reduce the remaining life of a two year old grinding machine to four years
when it is expected to be sold for K8,000 as scrap. The machine originally cost K298,000
and at 1 January 2021 had related accumulated depreciation of K58,000.

Required:
(a) Calculate the value of property, plant and equipment for the year ended 31 December
2021 as required by IFRSs.
(b) Briefly explain the qualitative characteristics of financial information contained in the
IASB Framework illustrating your answer with references to the provisions of IAS 16
Property, Plant and Equipment.