This question related with MFRS 116 (property,plant and equipment). 9. The following issues have arisen during the preparation of draft financialstatements of Rose for the year ended 31 December x4.a. The following schedule of the movement of plant has been drafted:CostDepreciationRMRM millionInvermillionIgenAt 1 January x416044.0imilsAdditions33Depreciation charge for the yearDisposal34.6000.0078.6 ST(20)At 31 December x4ad 173पताNotes1.RM millionThe additions to plant are made up of:Basic cost from supplierbank loos b29Installation costeilimPre-production testing gadindAnnual maintenance and insurance slds 2evsqmoSpare parts11Less: Government grant(5) bga332. The disposal figure of RM20 million was the proceeds from the sale ofan item of plant during the year which cost RM40 million in xl anddepreciated 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 asdeferred income.Required:Prepare the correct schedule of movement of cost and depreciation ofplant.

The cost of the asset does not only contain the purchase price of the asset but also all the cost…

Answered: itions to plant are made up of: ost…

Business

Accounting

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

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.4MBA

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