At the year ended 31 December, 2020, information regarding property, plant and equipment of Camelia Supplies Bhd are as follows: Machinery with an estimated useful life of 20 years was acquired on 1 April 2020. The cost of the machinery was RM300,000. Depreciation of machinery is based on the straight line method. 1. A piece of freehold land was acquired on 1 July 2020. The acquisition price of the land was RM1,600,000. Revaluation model is adopted for land. The fair value of the land at the year end was RM1,800,000. 2. Required: Illustrate the accounting treatment for the above assets for the year ended 31 December, 2020 in accordance with the requirements of MFRS116 Property, Plant and Equipment.

At the year ended 31 December, 2020, information regarding property, plant and equipment of Camelia Supplies Bhd are as follows: Machinery with an estimated useful life of 20 years was acquired on 1 April 2020. The cost of the machinery was RM300,000. Depreciation of machinery is based on the straight line method. 1. A piece of freehold land was acquired on 1 July 2020. The acquisition price of the land was RM1,600,000. Revaluation model is adopted for land. The fair value of the land at the year end was RM1,800,000. 2. Required: Illustrate the accounting treatment for the above assets for the year ended 31 December, 2020 in accordance with the requirements of MFRS116 Property, Plant and Equipment.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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