During the year ended 31 December 2021, High Bhd acquired the following assets: Date Assets acquired Amount
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Question:
- During the year ended 31 December 2021, High Bhd acquired the following assets:
Date | Assets acquired | Amount |
1 January 2021 | 10,000 shares in Media Bhd which are to be held for trading purposes | RM100,000 |
1 April 2021 | Machinery with an estimated useful life of 10 years | RM150,000 |
1 July 2021 | A piece of freehold land | RM800,000 |
Additional information:
The accounting policies of High Bhd are as follows:
- Depreciation of machinery is based on the straight line method and full year depreciation is to be provided in the year of purchase.
- The revaluation method is adopted for land.
- Financial assets are classified at fair value through profit or loss.
The fair values of the assets at the year end were as follows:
10,000 shares in Medium Bhd | RM120,000 |
Freehold land | RM900,000 |
Required:
- Briefly explain the difference between financial assets and non-financial assets.
- Explain the accounting treatment for the above assets for the year ended 31 December 2021.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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