Explain the accounting treatment of the plant for the year

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Vintage Bhd is a leading manufacturer of baking materials in Johor Bahru. On 1 April 2014, the company acquired a plant at a cost of RM3,500,000 to help with the increase in demand for manufacturing of goods. The plant has a useful life of 10 years. On 1 January 2017 and 1 January 2019, the plant has a fair value of RM2,697,000 and RM1,900,000 respectively. The company measures its property, plant and equipment using revaluation models and depreciates it based on period of ownership. Financial year ends on 31 December every year.

Required:

Problem i. Explain the accounting treatment of the plant for the year ended 31 December 2014 based on MFRS 116 Property, plant and equipment.

Problem ii. Prepare relevant journal entries for the plant for the year ended 31 December 2017 and 31 December 2019.

Reference no: EM132739547

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