On 1 January 2015, Telupid Bhd acquired a fabric design from a well-known fashion designer at RM2,000,000. The company had conducted a thorough product life-cycle analysis, and the results indicated that the design would be trending for the next 20 years. On 1 January 2020, due to unexpected changes in the fashion industry, the design that was initially estimated to have a total useful life of 20 years was revised to 10 years. As a result, the value-in-use was estimated to be RM900,000 on that date. 

In January 2022, the company incurred additional costs of RM1,500,000 to improve the old design and the improvement allows the useful life of the design to be extended for another 3 years. The company adopts the cost model for the intangible assets and the property plant and equipment. The depreciation and amortization expenses are calculated on a straight-line method and charged to profit or loss on a yearly basis. The company closes its account on 31 December every year.

Required

Prepare an extract statement of financial position and statement of profit or loss and other comprehensive income for the year ended 31 December 2022 to reflect all the transactions related to the fabric design.

Answer rating: 100% (QA)

1 January 2015 Cast depretation 20152019 Amortigation A... View the full answer