On $1$ April $2016,$ Amanah Berhad purchased a $25-$storey building for the investment purposes.

The cost of the building was RM$89,000,000\mathrm{.}00$ and the building is expected to have a useful

life of $40$ years with no salvage value. The accounting year for Amanah Berhad ends on $31$

December each year. Amanah Berhad uses fair value model to measure its investment

property. As at $31$ December $2016,$ the market value of the building was RM$125,000,000\mathrm{.}00,$

but as at $31$ December $2017,$ it drops to RM$115,000,000\mathrm{.}00.$ Amanah Berhad uses a straightline

method to depreciate its non$-$current assets.

  

 

REQUIRED:

Explain how Amanah Berhad records the transaction in its book and prepare the necessary

entries to record all related transaction.

Answer rating: 100% (QA)

Recording Investment Property Purchase and Fair Value Changes Amanah Berhad uses the fair value mode... View the full answer