In March 2016, MM Plc installed and paid for RM500,000 of property, plant and equipment (PPE)...

  

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In March 2016, MM Plc installed and paid for RM500,000 of property, plant and equipment (PPE) on a farm. The PPE will be depreciated over twenty-five (25) years. In July 2016, the government provided a grant of 40% to the company towards this PPE. The company's depreciation policy is to charge a full year's depreciation in the year of purchase and none in the year of sale. Required: For presenting a Government Grant (MFRS120) in financial statements, prepare the journal entries based on treating the grant as deferred income, that is recognised in profit or loss on a systematic basis over the useful life of the asset Abby owns an old office building as at 1 April 2012. The office building is used by Abby for administrative purposes with a depreciated historical cost of RM 2 million. At 1 April 2012 it had a remaining life of 20 years. After a reorganisation on 1 October 2012, the property was let to a third party and reclassified as an investment property applying Abby's policy of the fair value model. An independent valuer assessed the property to have a fair value of RM 2-3 million at 1 October 2012, which had risen to RM 2:34 million at 31 March 2013. Required: Prepare extracts from Abby's entity statement of profit or loss and other comprehensive income and statement of financial position for the year ended 31 March 2013 in respect of the above properties (10 marks) In March 2016, MM Plc installed and paid for RM500,000 of property, plant and equipment (PPE) on a farm. The PPE will be depreciated over twenty-five (25) years. In July 2016, the government provided a grant of 40% to the company towards this PPE. The company's depreciation policy is to charge a full year's depreciation in the year of purchase and none in the year of sale. Required: For presenting a Government Grant (MFRS120) in financial statements, prepare the journal entries based on treating the grant as deferred income, that is recognised in profit or loss on a systematic basis over the useful life of the asset Abby owns an old office building as at 1 April 2012. The office building is used by Abby for administrative purposes with a depreciated historical cost of RM 2 million. At 1 April 2012 it had a remaining life of 20 years. After a reorganisation on 1 October 2012, the property was let to a third party and reclassified as an investment property applying Abby's policy of the fair value model. An independent valuer assessed the property to have a fair value of RM 2-3 million at 1 October 2012, which had risen to RM 2:34 million at 31 March 2013. Required: Prepare extracts from Abby's entity statement of profit or loss and other comprehensive income and statement of financial position for the year ended 31 March 2013 in respect of the above properties (10 marks)

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Journal Entries in the books of MM Plc Date Particulars Debit in R... View the full answer