MAIZA Equipment Bhd is a distributor of food processing and commercial kitchen solutions for customers in the
Question:
MAIZA Equipment Bhd is a distributor of food processing and commercial kitchen solutions for customers in the food and beverage industry in Malaysia. The following trial balance relates to MAIZA Equipment Bhd as at 31 December 2017.
On 1 January 2016, the company acquired an environmentally friendly equipment costing RM5,000,000 with useful life of 10 years. For the acquisition purposes, the company received RM1,000,000 of government grant. The company treated the grant under deferred income method. However, on 31 December 2017, the company is unable to fulfil the requirements embedded in the grant. As a result, the grant become repayable. This adjustment has not been accounted for in the books of MAIZA Equipment Bhd.
Required:
How to record to the relevant financial statements (Statement of Financial Position / Statement of Profit or Loss/ statement of changes equity in a form suitable for publication during the year ended 31 December 2017
Financial Accounting and Reporting
ISBN: 978-1292162409
18th edition
Authors: Barry Elliott, Jamie Elliott