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Zanadriana Ltd is a start-up pharmaceuticals company with 50 per cent of its operations in research and development. The following transactions and events occurred in year 1. Record them in the company's accounts in accordance with IFRS. If needed, an appropriate rate of interest is 8 per cent p.a

1. Zanadriana Ltd spent $250 000 on researching and developing a new product. The research shows high promise of becoming commercially viable. 2. In December, Zanadriana Ltd acquired all the common shares of Austin Power Ltd to ensure a supply of electricity to its remote research facilities. The acquisition was paid for with cash, $2 000 000. Austin Power Ltd will be absorbed into Zanadriana Ltd as a division rather than retaining a separate legal identity. The carrying amounts and market values of the assets on the acquisition date are: Carrying amount Market value Current assets $ 140 000 $ 140 000 Land and buildings 1500 000 1700 000 Liabilities 150 000 150 000 3. In December, Zanadriana Ltd purchased all the ordinary shares of Bazza's Hickory Ltd in order to acquire the land and buildings of the organisation. The acquisition was paid for with cash, $1 900 000. Bazza's Hickory Ltd will be absorbed into Zanadriana Ltd as a division rather than retaining a separate legal identity. The carrying amounts and market values of the assets on the acquisition date are: Carrying amount Market value Current assets $ 240 000 $ 240 000 Land and buildings 1700 000 1900 000 Liabilities 150000 150 000 4. Three years ago, Zanadriana Ltd scientists developed a formula that has not yet been patented, but which is deemed to be worth at least $5 000 000. 5. On 30 November, Zanadriana Ltd entered into a non-cancellable lease of machinery for three years at $50 000 per month, payable at the start of the month, with an option to renew for five years at $3000 per month or to purchase the machines for $40 000 after the three-year lease term. Record whatever entry would be made on 30 November. 6. Zanadriana Ltd has good key staff with ten top-ranking executives who earn combined salaries of $4 000 000 p.a. Each of the executives has contracted to remain in the employ of Zanadriana Ltd for two years, following which a new contract will be negotiated. Confidentiality clauses, forbidding them to disclose information to competitors, have been signed by all of the top executives

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