Pota Berhad acquired a building costing RM2,400,000 on 1 May 2012 with an estimated useful life of 50 years. The building was occupied as the headquarters for its business operations in Georgetown, Penang. In a recent board meeting in January 2022, the directors had agreed to move the company’s headquarters to a new building located in Shah Alam, Selangor. Since then the company has been actively seeking a buyer. In addition, advertisements have also been placed to speed up the sale of the building. The building in Nilai has been vacated in October 2022. It was estimated that property brokerage fee of RM45,000 and legal fee of RM26,000 will be incurred in order to sell the building.

Required: Explain whether as at 31 December 2022, the building in Nilai can be classified as a non-current asset held for sale in accordance with MFRS 5 Non-current Asset Held for Sale and Discontinued Operations. 

Answer rating: 100% (QA)

Based on the information provided it appears that the building in Nilai meets the criteria for class... View the full answer