Lagoon Properties Plc (LP) is a public interest entity incorporated in Nigeria and listed on the Nigerian Exchange Group (NGX). LP is involved in real estate development and property management. The company's finance director, Mr. Adeyemi, is preparing the financial statements for the year ended 31 December 2023 and has encountered the following situations: (i) LP acquired a parcel of land for N850 million in March 2023. By 31 December 2023, an independent valuer assessed the fair value of the land at N1.1 billion. Mr. Adeyemi is uncertain whether to record the land at cost or fair value and what measurement basis the Conceptual Framework recommends. (ii) The company received a government grant of N120 million in August 2023 to subsidise the construction of low-cost housing units. The finance director is unsure whether to recognise this as income immediately or defer it. (iii) LP's managing director has proposed that the company change its accounting policy for depreciation of investment properties from the straight-line method to the reducing balance method, stating that this change will 'better reflect the pattern of economic benefits'. The company has been using the straight-line method for the past seven years. Additional Information: - The land was purchased strictly for capital appreciation and is not owner-occupied. - The government grant has conditions attached requiring the company to complete the housing units within three years. Required: (a) Explain the measurement bases available under the IASB Conceptual Framework for Financial Reporting and advise Mr. Adeyemi on the appropriate measurement basis for the land, citing the relevant IFRS standard. (10 marks) (b) Advise the finance director on the correct accounting treatment for the government grant of N120 million, with reference to the relevant IFRS standard and the recognition criteria in the Conceptual Framework. (8 marks) (c) Assess whether the proposed change in depreciation method by the managing director constitutes a change in accounting policy or a change in accounting estimate under IAS 8, and state the accounting treatment required. (7 marks) Total: 25 marks