Amar Bhd acquired a building (fair value of RM10,000,000) from Island & Peninsular on 1 January 2013 to administer the company’s business. The building would house the accounting, human resources, and other administrative staff. Amar made immediate payment by cheque and expects to use the building for about 50years.

a- Does Amar Bhd have an asset? Briefly state reasons for youranswer.

b- Is the asset an item of PPE? Why?

c- Under MFRS 116 Property, Plant and Equipment, explain when the building can be recognized and included in the financial statements.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a Yes Amar Bhd has an asset The asse... View the full answer