Prepare the comparative financial statements for the year

Assignment Help Financial Accounting

Reference no: EM132786534

Question - A. MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years.

The fair values of the property were measured as below:

Date RM (in million)

31/12/2015 72

31/12/2016 74

31/12/2017 78

31/12/2018 83

Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%.

REQUIRED -

(a) Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors.

(b) Prepare the comparative financial statements for the year ended 31 December 2018 incorporating the accounting changes made by MacPro Property Bhd.

Reference no: EM132786534

Questions Cloud

Do excerpts from columbus log provide us with information : Need to write a 500-600 essay based on the Columbus Journal that answers this question: Do these excerpts from Columbus' log provide us with any useful.

What account and amount should appear on the SFP : The enacted income tax rates are 30% for 2020. What account and amount should appear on the SFP at December 31, 2020 with respect to deferred taxes

Influences safety and quality in the healthcare industry : Select one of the topics listed above and indicate how that factor influences safety and quality in the healthcare industry.

Write about the mary mcleod bethune : African American women are rarely recognized as leaders so we want to bring these women back into history. Of course, we must define what a leader is.

Prepare the comparative financial statements for the year : Prepare the comparative financial statements for the year ended 31 December 2018 incorporating the accounting changes made by MacPro Property Bhd

What is the rate of growth of total factor productivity : If the capital share is 1/3 and the labor share in 2/3, what is the rate of growth of total factor productivity?

Features of quasi-experimental variables and designs : What are the features of quasi-experimental variables and designs? Under what conditions would this type of approach be appropriate?

What childhood risk factors did naomi have : What childhood risk factors did Naomi have regarding the possibility of becoming a persistent delinquent? How was this avoided?

What did it mean for the us and ussr during the cold war : For this assignment, analyze the space race. What did it mean for the U.S. and USSR during the Cold War? Is the space program still relevant?

User Account

All Pages