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itions to plant are made up of: ost from supplier on cost luction testing

itions to plant are made up of: ost from supplier on cost luction testing

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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This question related with MFRS 116 (property,plant and equipment).

9. The following issues have arisen during the preparation of draft financial statements of Rose for the year ended 31 December x4. a. The following schedule of the movement of plant has been drafted: Cost Depreciation RM RM million Inver million Igen At 1 January x4 160 44.0 imils Additions 33 Depreciation charge for the year Disposal 34.6 000.00 78.6 ST (20) At 31 December x4 ad 173 पता Notes 1. RM million The additions to plant are made up of: Basic cost from supplier bank loos b 29 Installation cost eilim Pre-production testing gadind Annual maintenance and insurance slds 2evsqmo Spare parts 1 1 Less: Government grant (5) bga 33 2. The disposal figure of RM20 million was the proceeds from the sale of an item of plant during the year which cost RM40 million in xl and depreciated at 20% per annum on the cost held at the end of the year. 3. The company's policy with regard to government grant is to treat it as deferred income. Required: Prepare the correct schedule of movement of cost and depreciation of plant.
Transcribed Image Text:9. The following issues have arisen during the preparation of draft financial statements of Rose for the year ended 31 December x4. a. The following schedule of the movement of plant has been drafted: Cost Depreciation RM RM million Inver million Igen At 1 January x4 160 44.0 imils Additions 33 Depreciation charge for the year Disposal 34.6 000.00 78.6 ST (20) At 31 December x4 ad 173 पता Notes 1. RM million The additions to plant are made up of: Basic cost from supplier bank loos b 29 Installation cost eilim Pre-production testing gadind Annual maintenance and insurance slds 2evsqmo Spare parts 1 1 Less: Government grant (5) bga 33 2. The disposal figure of RM20 million was the proceeds from the sale of an item of plant during the year which cost RM40 million in xl and depreciated at 20% per annum on the cost held at the end of the year. 3. The company's policy with regard to government grant is to treat it as deferred income. Required: Prepare the correct schedule of movement of cost and depreciation of plant.
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