Harta Bhd had used an office building for administrative purposes with a depreciated cost of historical cost of RM3.6 million on 1 April 2019 with a remaining life of 20 years.
There were some reorganizations to Harta’s properties during the year of 2019. The office building was rented to a third party and reclassified as an investment property applying the fair value on 1 October 2019. Harta Bhd had consulted an independent professional assessor valued on the property. The fair value of the building was valued at RM4.14 million at 1 October 2019 by the assessor. This value rose further to RM4.212 million at 31 March 2020.
Discuss the accounting treatment of the above scenarios in accordance to the relevant MFRS. Show the effects to the financial statements of Kaya Bhd.

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Harta bhd bhd In Rm Carrying amount as on 1st october 2019 In millions h... View the full answer