The question is about MFRS 116 (property,plant, and equipment) QUESTIONS1. Robin purchased an item of plant. The details are as follows:ue eRMRMList price1,200,000Trade discount10%Shipping and handlingPre-production testing16,00025,000Maintenance for fouryears60,000Site preparationConcrete reinforcement12,000Electrical cabling and wiring34,000Labour cost36,000 Property, Plant and Equipment469Robin had specified wrong cables and the cost of correcting the error of psRM12,000 is included in the electrical cabling costs.Robin settled the amount due to the vendor within the credit period andobtained a 2% early settlement discount on the purchase price.The plant is expected to last for five years, at the end of which Robin wwill incur compulsory dismantling costs of RM10,000 and site restorationcost of RM5,000. The present value of RM1 received in five years' time isRM0.75, using a discount rate of 6%.The residual value of the plant is estimated at RM26,000.Required:Calculate the amount that will be recognised as plant.b. Show the extract of the statement of profit or loss and othercomprehensive income of Robin.Show the extract of the statement of financial position at the end ofа.C.year 1.

Income statement:- Income statement is one of the main financial statement which shows the total…

Answered: The question is about MFRS 116…

Business

Accounting

The question is about MFRS 116 (property,plant, and equipment)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Under the IAS 16, there is an impairment loss of property, plant and equipment if?

A: IAS 16 refers to international accounting standards related to the property, plant, and equipment…

Q: critically explain any four main disclousures relating to IAS 38 intangible assets by providing…

A: Intangible assets are the one which have the useful life and are amortized over a period of life.…

Q: IAS 36 considers Accounting for Impairment in relation to Intangible Assets. Is this realistic in…

A: The impairment of the assets means a situation in which the market value of the asset is less as…

Q: Explain how to account for one of these assets: Patents, Trademarks, Goodwill, or Natural…

A: Goodwill is an intangible asset. In layman terms it means reputation. Goodwill is the additional…

Q: How is cost of an item of property, plant and equipment determined at point of initial recognition?…

A: A piece of land, facility, or equipment that registers for asset recognition is assessed always at a…

Q: With reference to IAS 16 (Property, Plant and Equipment), discuss the differences between “the cost…

A: IAS 16 relates to the accounting for property, plant, and equipment unless another standard requires…

Q: How to value the assets of property, plant and equipment

A: Property, plant and equipment are regarded as tangible fixed assets and they should be valued…

Q: How is property, plant, and equipment measured on the balance sheet under IFRS? How does this differ…

A: Generally Accepted Accounting Principles: The principles which are followed by the management to…

Q: 14. Which of the following is not an intangible asset? a.Patent b.Trademark c.Research and…

A: Solution:- Intangible asset means as follows:-

Q: Describe how property, plant, and equipment disposal is accounted for

A: Property, plant, and equipment disposal is accounted will be explained :

Q: IFRS 5 requires certain conditions to be met before an asset or disposal group can be classified as…

A: IFRS 5 deals with the held for sale, non-current assets.

Q: Clear and detailed explanation on all of the following: overview, objectives, scope and definition…

A: Overview An asset to be known as an intangible should have the following qualities: Identifiable…

Q: Assuming IASB board is considering amendment to the IAS 16: Property, Plant and Equipment, what…

A: The primary objective of IAS 16 is to prescribe the accounting treatment of property plant equipment…

Q: Discuss TWO criteria that must be satisfied for an item of property, plant, and equipment to be…

A: Plant, property and equipment are the assets which fall under the category of the fixed assets to…

Q: Clear and detailed explanation on all of the following: overview, objectives, scope and definition…

Q: Evaluate the recoverability test used in U.S. GAAP.

A: Recoverability test is used for determining and accounting for impairments in the value of fixed…

Q: What are the two main characteristics of intangibleassets?

Q: Is property, plant and equipment is classified as non-current assets?

A: Generally, the liquidity of the assets plays a significant role in determining whether they are…

Q: One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant &…

A: Definition: IAS 16 deals provide a framework for the accounting treatment of property plant and…

Q: Briefly explain the difference between U.S. GAAP and IFRS in the measurement of an impairment loss…

A: Impairment loss of assets: Impairment loss of assets arises when the carrying value of the assets…

Q: The purpose of IAS 38 Intangible Assets is to prescribe the recognition and measurement criteria for…

A: According to IAS 38 - Intangible assets the other three options are being classified as an…

Q: Explain impairment procedures and presentation requirements for intangible assets.

A: Intangible assets are the long-term assets that do not have the physical appearance but it has the…

Q: How can I compute the acquasition of plant assets?

A: The acquisition cost incurred on a plant asset is the cost expended to acquire and place the asset…

Q: Explanation on the disclosure requirements for the accounting treatment of the intangible asset…

A: As quoted by IAS 38, Intangible assets refer to an "identifiable non- monetary asset without…

Q: Discuss c

A: Property, plant, and equipment (PP&E) are physical assets used in the operations of a business.…

Q: Explain three (3) similarities and two (2) differences between IFRS and US GAAP with respect to…

A: IFRS( International Financial Reporting Standards): IFRS is a set of accounting norms and…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to the acquisition of…

A: Property, Plant, and Equipment: Property, plant, and equipment are those assets which are…

Q: US GAAP generally follows historical cost accounting in reporting property, plant, and equipment…

A: Historical cost accounting and fair value accounting each have their merits, and the preference…

Q: Under GASB Statement No. 34, which of the following is true of infrastructure?a. Infrastructure must…

Q: Briefly explain the term of ‘biological asset’ and discuss when a biological asset is recognised in…

A: Biological Assets under MFRS 141: Living assets, such as trees, animals, and cannabis, are referred…

Q: Describe how the recognition and measurement requirements for Intangible Assets under AASB 138…

A: Non-physical assets with no physical substance but value to an entity are known as intangible…

Q: he applicable IFRS/IAS for a property being constructed or developed for future use as investment…

A: IFRS represents the standards and rules established by IFRs foundation and IASB providing assistance…

Question

100%

The question is about MFRS 116 (property,plant, and equipment)

QUESTIONS
1. Robin purchased an item of plant. The details are as follows:ue e
RM
RM
List price
1,200,000
Trade discount
10%
Shipping and handling
Pre-production testing
16,000
25,000
Maintenance for four
years
60,000
Site preparation
Concrete reinforcement
12,000
Electrical cabling and wiring
34,000
Labour cost
36,000

Property, Plant and Equipment
469
Robin had specified wrong cables and the cost of correcting the error of ps
RM12,000 is included in the electrical cabling costs.
Robin settled the amount due to the vendor within the credit period and
obtained a 2% early settlement discount on the purchase price.
The plant is expected to last for five years, at the end of which Robin w
will incur compulsory dismantling costs of RM10,000 and site restoration
cost of RM5,000. The present value of RM1 received in five years' time is
RM0.75, using a discount rate of 6%.
The residual value of the plant is estimated at RM26,000.
Required:
Calculate the amount that will be recognised as plant.
b. Show the extract of the statement of profit or loss and other
comprehensive income of Robin.
Show the extract of the statement of financial position at the end of
а.
C.
year 1.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 introduction

VIEW

Step 2 answer

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Discuss the primary differences between U.S. GAAP and IFRS with respect to theutilization and impairment of property, plant, and equipment and intangible assets.
Compare and contrast US GAAP and IFRS in measuring an impairment loss for property, plant, and equipment as well as finite-life intangibles.
Demonstrate how to report and analyze property, plant, equipment, and natural resources.
Explain how to report and analyze property, plant, equipment, and natural resources.
how to calculate additions to plant , property, and equipment
Describe the common characteristics of assets classified as property, plant, and equipment and identify some assets included in this classification.
Explain the accounting issues related to acquiring and valuing plant assets.
The four subdivisions for plant assets are: a. land, land improvements, buildings, and equipment b. intangibles, land, buildings, and equipment c. furnishings and fixtures, land, buildings, and equipment d. property, plant, equipment, and land
A copyright is an example of a(n) artistic-related intangible asset. marketing-related intangible asset. contract-based intangible asset. customer-related intangible asset.