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Solution FAR270 NOV 2022
Solution FAR270 NOV 2022
QUESTION 1
1. Capitalised √
2. Capitalised √
3. Expense Off √
4. Expense Off √
5. Capitalised √
(5 marks)
RM
Purchase price less discount (250,000 – 5,000) 245,000√
Delivery and transportation 7,500√
Road tax and insurance 4,800 √
Cost of painting company’s logo 3,000√
Initial cost 260,300√
(5√ X 1 mark = 5 marks)
B (i) Compute the carrying amount of the mixing machine as at 30 June 2022
Ababil Bhd
Cost/ Valuation RM
As at 1 July 2021 270,000√
Less: Accumulated Depreciation
270,000-20,000 X 2 years (100,000)√√
5 years
Carrying amount as at 1 July 2021 170,000
Add: Special component (1 Feb 2022) 80,000√
Balance as at 30 June 2022 250,000
Dr Building √ 3,800,000
Cr ARR- Building 3,800,000√
Accumulated Depreciation
Beginning balance as at 1 Jan 816,000 600,000
Charge for the year 600,000√ 600,000√
(13,800,000/23years)
Less: Elimination of AD (816,000)√
Balance as at 31 December 600,000 1,200,000
Revaluation surplus**
CA = 10,200,000 – 816,000
= RM9,384,000√
Impairment***
FVLCTS = 9,000,000
Value in use = 9,500,000
CA = 13,800,000 – 1,200,000
= RM12,600,000√
QUESTION 2
A.
i. An owned investment property shall be recognised as an asset when and only when:
a. It is probable that the future economic benefits that are associated with the
investment property will flow to the entity; √
b. The cost of the investment property can be measure reliably. √
(2√ x 1 = 2 marks)
ii.
Floor 1- Floor rented out to tenant should be classified as an investment
property based on MFRS 140 since it is held to earn rentals. √
Floor 2 - Floor occupied by Anas Bhd will be classified as PPE based on MFRS
116 since it is used by the company (owner-occupied). √
(3√ x 1 = 3 marks)
B.
i. On 1/6/2020, the whole building shall be classified as an investment property
under MFRS140 because the number of floor for rented out is more significant
(14/15) compared to the owner occupied (1/15). √ The building also cannot be
sold separately. √ The asset is initially measured at its cost of RM18,700,000√.
(17m + 0.6m+1.1m)
ii.
PSV Bhd
Statement of Profit or Loss and Other Comprehensive Income for the year
ended 31 December (extract)
2020 2021
Other expenses
FV loss on investment property√ (400,000) √
Other income
FV gain on investment property √ 1,700,000√
PSV Bhd
Statement of Financial Position as at 31 December (extract)
(5√ x 1 = 5 marks)