Atif Pharma Bhd (AP Bhd) is a pharmaceutical distributor which purchases prescription medicines and other medical products directly from pharmaceutical manufacturers and distribute across the country. In 2019, the company was involved in several transactions related to the acquisition of property, plant and equipment in order to diversify its operation.

On 2 January 2019, the company purchased a land with an old building for the purpose of self- constructed a new building as a factory by a selected constructed contractor. The price of the land and old building were RM850,000 and RM150,000, respectively. Additional expenditure incurred in relation to the purchase of land and construction of new factory were as follows:

RM Professional fees 80,000 Commission paid to real estate agency 16,500 Cost of demolishing an old building on the land 20,000 Excavation cost 33,000 Salvage value from the old building 18,200 Cost of grading and clearing the plot 25,000 Installation of high grade fences around the factory 31,200 Cost of 200 parking lot and 4 driveways 83,000 Cost of direct material and direct labour for construction of factory 438,000 Overhead cost incurred during construction of factory 80,300 Cost of constructing and demolishing living quarters for the workers 22,200 building a factory Interest cost incurred to finance the construction of factory 23,790 Cost of planted a temporary green landscape 18,700