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The directors of a company are considering the companys draft financial statements for the year ended 31 December 2017. The following financial information has been summarized from the books of the company on 31 December 2017:

				Debit	Credit
				$m	$m
Revenue					635,000
Cost of sales				435,900
Distribution costs				50,250
Administrative expenses				55,200
Loan note interest and dividends paid				17,190
Bank interest				1,350
20-year leased property at cost				150,000
Freehold land				200,000
Property, plant and equipment at cost				133,250
Accumulated depreciation at 31 December 2017:
Leased property					67,500
Plant and equipment					65,250
Inventory at 31 December 2017				73,600
Trade receivables				84,500
Provision for bad debts					3,600
Trade payables					88,300
Bank balance					5,370
Paid-up ordinary share capital					222,500
Retained profits at 1 January 2017					38,920
5% loan note					75,000
Current tax				4,800
Deferred tax					4,600
				1,206,040	1,206,040

The above financial data has not taken into consideration the following issues:

1 From past experience, the management estimated that 6% of trade receivables were uncollectible.

2 Land is measured using the revaluation model. In February 2018, the company received confirmation that land has a fair value increase of $10, 500 million at 31 December 2017. Land is not subject to depreciation.

3 The balance on current tax in the trial balance represents the under/over provision of tax liability of the previous year. Current tax expense amount is estimated to be $2,700 million. The tax consultant advised that the deferred tax liability balance (including the tax effects of item 2) should be $7,400 million at 31 December 2017. Corporate tax rate is 20%

4 The financial statements were to be published on 15 April 2018.

Required (work to the nearest thousand dollars; Notes to the accounts are not required)

With reference to relevant international accounting standards,

Explain whether each of the above items (1) to (3) should be included in the financial statements for the year ended 31 Decem ber 2017. If the answer is yes, what should be the adjustment /amount that would appear in the financial statements? (Note: the items do not carry equal weighting).

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