Sunflower Tech Sdn. Bhd. is a manufacturer of computer components. It adopts a 31 December accounting...
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Sunflower Tech Sdn. Bhd. is a manufacturer of computer components. It adopts a 31 December accounting year-end. On 1 January 20x1, the company uses its excess cash to buy a building for investment purposes. The building is rented out to another manufacturer. The building costs RM25,000,000 and is expected to have a useful life of 50 years with no salvage value. The market value of the building is RM27,500,000 as at 31 December 20x1, and RM24,000,000 as at 31 December 20x2. Required: Illustrate the accounting treatment of the building under MFRS 140 Investment Property (assuming Sunflower Tech Sdn Bhd choses fair value model) (15 marks) Sunflower Tech Sdn. Bhd. is a manufacturer of computer components. It adopts a 31 December accounting year-end. On 1 January 20x1, the company uses its excess cash to buy a building for investment purposes. The building is rented out to another manufacturer. The building costs RM25,000,000 and is expected to have a useful life of 50 years with no salvage value. The market value of the building is RM27,500,000 as at 31 December 20x1, and RM24,000,000 as at 31 December 20x2. Required: Illustrate the accounting treatment of the building under MFRS 140 Investment Property (assuming Sunflower Tech Sdn Bhd choses fair value model) (15 marks)
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Aneueg As Pex MFRS 140 Inwestment Prolesty it shoutd be initally meagufe... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod-Dick I
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