This case study solution addresses the financial reporting issues faced by Dynamics Co. Ltd, a manufacturer of premium security equipment, in accordance with IFRS. It primarily focuses on the application of IAS 16 (Property, Plant and Equipment) and IAS 37 (Provisions, Contingent Liabilities and Contingent Assets). The analysis covers the revaluation of a manufacturing property, accounting for a revaluation loss, and the appropriate accounting treatment for potential food poisoning claims from employees. The solution details the calculations and adjustments required in the financial statements, including the recognition of provisions, contingent liabilities, and the impact on the statement of profit or loss and other comprehensive income (SPLOCI) and the statement of financial position (SOFP). Furthermore, the solution discusses depreciation methods, impairment considerations, and derecognition of assets as per IAS 16, providing a comprehensive overview of the accounting principles involved.