The following information is relevant: i. Statement of Comprehensive Income extract for the year ended 31 December 2022: Operating profit before interest and tax Interest expense Interest receivable Profit before tax Net income tax credit Profit for the period Note: the interest expense includes hire purchase interest. ii. The details of the tangible non-current assets are: Cost RM'000 21,200 17,000 At 31 December 2021 At 31 December 2022 Show Transcribed Text RM'000 270 (260) 40 50 Accumulated depreciation RM'000 4,400 5,400 50 100 Carrying value RM'000 16,800 11,600 During the year GoGo Sdn Bhd sold a plant for its fair value of RM12 million. The profit on the sale of the plant has been included in operating profit. At the date of the sale it had a carrying value of RM7.4 million based on a previous revaluation of RM8.6 million less the accumulated depreciation of RM1.2 million since the revaluation. The surplus on the revaluation reserve was related entirely to the plant. No other disposals of non-current assets were made during the year. Plant acquired under hire purchase during the year was RM2.0 million. (b) Discuss the benefits of presenting the cash flow information.
The following information is relevant: i. Statement of Comprehensive Income extract for the year ended 31 December 2022: Operating profit before interest and tax Interest expense Interest receivable Profit before tax Net income tax credit Profit for the period Note: the interest expense includes hire purchase interest. ii. The details of the tangible non-current assets are: Cost RM'000 21,200 17,000 At 31 December 2021 At 31 December 2022 Show Transcribed Text RM'000 270 (260) 40 50 Accumulated depreciation RM'000 4,400 5,400 50 100 Carrying value RM'000 16,800 11,600 During the year GoGo Sdn Bhd sold a plant for its fair value of RM12 million. The profit on the sale of the plant has been included in operating profit. At the date of the sale it had a carrying value of RM7.4 million based on a previous revaluation of RM8.6 million less the accumulated depreciation of RM1.2 million since the revaluation. The surplus on the revaluation reserve was related entirely to the plant. No other disposals of non-current assets were made during the year. Plant acquired under hire purchase during the year was RM2.0 million. (b) Discuss the benefits of presenting the cash flow information.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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