COVERAGE: COMPARE AND CONTRAST BETWEEN MFRSS AND THEIR TREATMENT IN THE FINANCIAL STATEMENT. 1. Camar Bhd...

  

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COVERAGE: COMPARE AND CONTRAST BETWEEN MFRSS AND THEIR TREATMENT IN THE FINANCIAL STATEMENT. 1. Camar Bhd involved in a business of manufacturing and selling home furniture. On 1 January 2013, Camar Bhd acquired a new medium size building to be used as a factory warehouse. The cost of the building was RM10,000,000 and the expected economic life was 20 years. During the year 2013 and 2014, the building was used as one of the management office of the company. However on 1 January 2015, the directors of the company decided to lease out the building to an independent third party for RM25,000 per month. The market value of the building on 1 January 2015 was valued at RM14,000,000. The company adopted revaluation model and fair value model to account the asset. Required: a) Discuss the accounting treatment of the asset owned by Camar Bhd in compliance with the relevant financial reporting standards applied in Malaysia. (7 marks) b) Show the extract of Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position for the year ended 31 December 2013, 2014 and 2015. (7 marks) COVERAGE: COMPARE AND CONTRAST BETWEEN MFRSS AND THEIR TREATMENT IN THE FINANCIAL STATEMENT. 1. Camar Bhd involved in a business of manufacturing and selling home furniture. On 1 January 2013, Camar Bhd acquired a new medium size building to be used as a factory warehouse. The cost of the building was RM10,000,000 and the expected economic life was 20 years. During the year 2013 and 2014, the building was used as one of the management office of the company. However on 1 January 2015, the directors of the company decided to lease out the building to an independent third party for RM25,000 per month. The market value of the building on 1 January 2015 was valued at RM14,000,000. The company adopted revaluation model and fair value model to account the asset. Required: a) Discuss the accounting treatment of the asset owned by Camar Bhd in compliance with the relevant financial reporting standards applied in Malaysia. (7 marks) b) Show the extract of Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position for the year ended 31 December 2013, 2014 and 2015. (7 marks)

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