Discuss measurement treatment for the property

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Sobe Bhd advanced a loan to a customer for RM2.5 million but the customer failed to repay the debt. Sobe Bhd took possession of the customer's property as security and it intends to sell to external market to recover the debt. However, certain repairs and maintenance are required before the property can be disposed of. After the repairs and maintenance are completed, the property is classified as held for sale, however, before a firm purchase commitment is obtained, Sobe Bhd becomes aware of certain issues requiring remediation. Sobe Bhd remains highly committed to sell the property, but does not have the ability to transfer the asset to a buyer until after the remediation is completed.

Question 1: Discuss the appropriate classification and measurement treatment for the property.

Reference no: EM132538164

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