Good Game Ltd (GG Ltd) is a running a computer game business in Hong Kong. Details...

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Good Game Ltd ("GG Ltd") is a running a computer game business in Hong Kong. Details of its non-current assets as at 31 December 2015 and 2016 were: Office Cyber game Equipment Total s'000 centre $'000 $'000 $'000 As at 31 December 2015 Cost 60,000 80,000 1,500 141,500 Accumulated (8,000) (22,000) (200) (30,200) depreciation/ amortization Сатying 52,000 58,000 1,300 111,300 amount As at 31 December 2016 Fair value 73,000 59,000 620 Office The office had been used by GG Ltd as back office. From 1 November 2016, the office was let to GG Ltd's subsidiary HH Company and charged $100,000 each month. The fair value of the Office on 1 November 2016 was $70 million. Certain building management services such as day-to-day cleaning and security were provided. Cyber game centre The game centre covers an area of 6,000 square feet and had been operated by GG Ltd for many years. The area of the game centre could not be sold separately. The business of cyber game had not been growing as expected due to fierce market competition. On 1 May 2016, GG Ltd decided to let the game centre to an unrelated company Pincapple Limited which sells smart phones, computer hardware and software. Meanwhile, GG Ltd retained 100 square feet for selling its own game products. The fair value of the game centre on 1 May 2016 was $60 million. GG Ltd adopts cost model for its property, plant and equipment and intangible assets whereas fair value model for investment property. Depreciation is calculated based on 5% per annum based on cost for the office, the game centre and the equipment. It requires full-month depreciation and no depreciation is necessary for the month when the asset is derecognized. Required: a. For the year ended 31 December 2016, explain the accounting treatments with appropriate Hong Kong Accounting Standard for: (i) Office (ii) Cyber game centre b. Determine the carrying amount of each of the non-current assets of GG Limited as at 31 December 2016. с. Prepare an extract of financial statements of GG Limited as at 31 December 2016. Good Game Ltd ("GG Ltd") is a running a computer game business in Hong Kong. Details of its non-current assets as at 31 December 2015 and 2016 were: Office Cyber game Equipment Total s'000 centre $'000 $'000 $'000 As at 31 December 2015 Cost 60,000 80,000 1,500 141,500 Accumulated (8,000) (22,000) (200) (30,200) depreciation/ amortization Сатying 52,000 58,000 1,300 111,300 amount As at 31 December 2016 Fair value 73,000 59,000 620 Office The office had been used by GG Ltd as back office. From 1 November 2016, the office was let to GG Ltd's subsidiary HH Company and charged $100,000 each month. The fair value of the Office on 1 November 2016 was $70 million. Certain building management services such as day-to-day cleaning and security were provided. Cyber game centre The game centre covers an area of 6,000 square feet and had been operated by GG Ltd for many years. The area of the game centre could not be sold separately. The business of cyber game had not been growing as expected due to fierce market competition. On 1 May 2016, GG Ltd decided to let the game centre to an unrelated company Pincapple Limited which sells smart phones, computer hardware and software. Meanwhile, GG Ltd retained 100 square feet for selling its own game products. The fair value of the game centre on 1 May 2016 was $60 million. GG Ltd adopts cost model for its property, plant and equipment and intangible assets whereas fair value model for investment property. Depreciation is calculated based on 5% per annum based on cost for the office, the game centre and the equipment. It requires full-month depreciation and no depreciation is necessary for the month when the asset is derecognized. Required: a. For the year ended 31 December 2016, explain the accounting treatments with appropriate Hong Kong Accounting Standard for: (i) Office (ii) Cyber game centre b. Determine the carrying amount of each of the non-current assets of GG Limited as at 31 December 2016. с. Prepare an extract of financial statements of GG Limited as at 31 December 2016. Good Game Ltd ("GG Ltd") is a running a computer game business in Hong Kong. Details of its non-current assets as at 31 December 2015 and 2016 were: Office Cyber game Equipment Total s'000 centre $'000 $'000 $'000 As at 31 December 2015 Cost 60,000 80,000 1,500 141,500 Accumulated (8,000) (22,000) (200) (30,200) depreciation/ amortization Сатying 52,000 58,000 1,300 111,300 amount As at 31 December 2016 Fair value 73,000 59,000 620 Office The office had been used by GG Ltd as back office. From 1 November 2016, the office was let to GG Ltd's subsidiary HH Company and charged $100,000 each month. The fair value of the Office on 1 November 2016 was $70 million. Certain building management services such as day-to-day cleaning and security were provided. Cyber game centre The game centre covers an area of 6,000 square feet and had been operated by GG Ltd for many years. The area of the game centre could not be sold separately. The business of cyber game had not been growing as expected due to fierce market competition. On 1 May 2016, GG Ltd decided to let the game centre to an unrelated company Pincapple Limited which sells smart phones, computer hardware and software. Meanwhile, GG Ltd retained 100 square feet for selling its own game products. The fair value of the game centre on 1 May 2016 was $60 million. GG Ltd adopts cost model for its property, plant and equipment and intangible assets whereas fair value model for investment property. Depreciation is calculated based on 5% per annum based on cost for the office, the game centre and the equipment. It requires full-month depreciation and no depreciation is necessary for the month when the asset is derecognized. Required: a. For the year ended 31 December 2016, explain the accounting treatments with appropriate Hong Kong Accounting Standard for: (i) Office (ii) Cyber game centre b. Determine the carrying amount of each of the non-current assets of GG Limited as at 31 December 2016. с. Prepare an extract of financial statements of GG Limited as at 31 December 2016. Good Game Ltd ("GG Ltd") is a running a computer game business in Hong Kong. Details of its non-current assets as at 31 December 2015 and 2016 were: Office Cyber game Equipment Total s'000 centre $'000 $'000 $'000 As at 31 December 2015 Cost 60,000 80,000 1,500 141,500 Accumulated (8,000) (22,000) (200) (30,200) depreciation/ amortization Сатying 52,000 58,000 1,300 111,300 amount As at 31 December 2016 Fair value 73,000 59,000 620 Office The office had been used by GG Ltd as back office. From 1 November 2016, the office was let to GG Ltd's subsidiary HH Company and charged $100,000 each month. The fair value of the Office on 1 November 2016 was $70 million. Certain building management services such as day-to-day cleaning and security were provided. Cyber game centre The game centre covers an area of 6,000 square feet and had been operated by GG Ltd for many years. The area of the game centre could not be sold separately. The business of cyber game had not been growing as expected due to fierce market competition. On 1 May 2016, GG Ltd decided to let the game centre to an unrelated company Pincapple Limited which sells smart phones, computer hardware and software. Meanwhile, GG Ltd retained 100 square feet for selling its own game products. The fair value of the game centre on 1 May 2016 was $60 million. GG Ltd adopts cost model for its property, plant and equipment and intangible assets whereas fair value model for investment property. Depreciation is calculated based on 5% per annum based on cost for the office, the game centre and the equipment. It requires full-month depreciation and no depreciation is necessary for the month when the asset is derecognized. Required: a. For the year ended 31 December 2016, explain the accounting treatments with appropriate Hong Kong Accounting Standard for: (i) Office (ii) Cyber game centre b. Determine the carrying amount of each of the non-current assets of GG Limited as at 31 December 2016. с. Prepare an extract of financial statements of GG Limited as at 31 December 2016.