Reference no: EM132563552

1. Fly Namibia (Pty) Ltd purchased 3 new planes for the transfer of its passengers on its Windhoek to Ondangwa route on 1 March 2014 for a cost of N$36 million (that means N$12 Million each). The company intends keeping the planes until they are obsolete (i.e. 40 years) at which time they are expected to have a nil residual value.

2. On 1 January 2016, Fly Namibia sold one of the planes to a private company in Namibia. This plane had a cost of N$12 Million

3. In addition to this aircraft, Fly Namibia purchased land and buildings on 1 August 2014 at a cost of N$5 625 000 of which the cost of land was estimated at N$562 500. The property is depreciated over its useful life of 40 years. During the year ended 28 February 2016, an amount of N$1 500 000 was spent upgrading this property to make it more conducive for business operations.

Additional information:

On 31 August 2015, for reasons of convenience the company undertook the requisite once-off inspection. The cost of the inspection was N$2 200 000.

The company uses the cost model to account for all property, plant and equipment.

You are required to:

Question 1: Provide the property, plant and equipment reconciliation note to the financial statements of Fly Namibia (Pty) Ltd for the reporting period ended 28 February 2016.