Epsilon is an entity which prepares financial statements, in accordance with International Financial Reporting Standards (IFRS), to 30 September each year. On 1 April 2018, Epsilon accepted delivery of a large and complex machine from a supplier. The agreed purchase price for the machine was £2 million. Epsilon received 10% trade discount. On 1 April 2018, Epsilon incurred direct costs of £50,000 in handling the machine and £25,000 in installing the machine at its premises. Although the machine was ready for use from 1 April 2018, Epsilon did not bring the machine into use until 30 April 2018. During April 2018 Epsilon incurred costs of £200,000 in training relevant staff to use the machine.

Triangle Ltd specialises in building high quality executive flats in city centres. On 1 March 20X6 it sells a plot of building land to Finance plc, an unconnected company, for £1.5m. Triangle Ltd retains rights of access and supervision over the plot, the right to build on this land until 28 February 20X8 and the right to buy the plot back again on that date for £1.9m. On 1 March 20X6 the plot is valued at £2.5m. Explain how this sale transaction would be dealt with in Triangle Ltd’s financial statements for the year ended 28 February 20X7.