1. During the year ended 31 December 2021, High Bhd acquired the following assets: 

 

Date	Assets acquired	Amount
1 January 2021	10,000 shares in Media Bhd which are to be held for trading purposes	RM100,000
1 April 2021	Machinery with an estimated useful life of 10 years	RM150,000
1 July 2021	A piece of freehold land	RM800,000

 

Additional information: 

The accounting policies of High Bhd are as follows: 

• Depreciation of machinery is based on the straight line method and full year depreciation is to be provided in the year of purchase. 
• The revaluation method is adopted for land. 
• Financial assets are classified at fair value through profit or loss. 

The fair values of the assets at the year end were as follows: 

10,000 shares in Medium Bhd	RM120,000
Freehold land	RM900,000

 

Required: 

1. Briefly explain the difference between financial assets and non-financial assets. 
2. Explain the accounting treatment for the above assets for the year ended 31 December 2021.

Answer rating: 100% (QA)

Difference between Financial Assets and NonFinancial Assets Financial Assets These are assets that represent a financial interest or a contractual rig... View the full answer