Reference no: EM132878921
Questions -
1. In December 2019, the directors of Gambit Bhd, decided to sell one of its plant. The carrying amount of the plant on that date was RM420,000. Its fair value was RM420,000 and it would cost the entity RM10,000 to dispose the plant. If the entity were to continue to use the asset, it would enjoy future cash flows amounting to RM400,000. There has been a firm commitment that the plant was to be sold to Bagheera Bhd at RM420,000 in February 2020.
2. On 1 January 2020, Gilmore Bhd received a cash grant of RM1,800,000 from the government. With this fund, the company had to create 30 jobs at the shoes museum. A subsidy of RM10,000 was provided for each job created and maintained for 12 months. All new jobs had been filled on the same day.
3. Selangkah Bhd is an entity operating in the oil industry. The company has been causing environmental pollution but cleans up only when required to do so under laws of the countries in which it operates in. One of these countries, has had no legislation requiring cleaning up and the entity has been contaminating the sea in that country for several years. At 31 December 2020, it is virtually certain that a law requiring a clean-up of the affected sea area will be enacted shortly after year end. The cost of cleaning up the area has been estimated to be RM2.4 million.
Required - For each of the above situation:
i. Identify the relevant MFRS.
ii. Explain the accounting treatment.
iii. Prepare relevant journal entries.
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Engineering group about the new product
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Explain the accounting treatment
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Southwest airlines
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