(b) (c) Poly Cuisine Sdn Bhd has been producing pastry and cakes in Melaka for many years. On January 2018, the carrying
Posted: Tue Jul 05, 2022 1:37 pm
- B C Poly Cuisine Sdn Bhd Has Been Producing Pastry And Cakes In Melaka For Many Years On January 2018 The Carrying 1 (68.89 KiB) Viewed 5 times
(b) (c) Poly Cuisine Sdn Bhd has been producing pastry and cakes in Melaka for many years. On January 2018, the carrying amount for a group of assets were as follows: Asset RM 120,000 60,000 40,000 40,000 Convections Oven Industry bakery mixer Digital mixer Goodwill Each of these asset does not produce its own cash flows and generate the business cash flow as a whole. All the assets, excluding goodwill are depreciated at 10% annually using reducing balance method. In 2020, several problems had caused all the assets to be less productive. Due to that, the production of pastry and cakes had dropped significantly, which affected cash flows. Additional information on 31 December 2020: 1. Fair value would be RM120,000. 2. Cost to sell the assets were estimated RM4,000. 3. Value in use of these asset were estimated RM114,000 As an account clerk in Poly Cuisine Sdn Bhd you are required to: i. provide calculation of carrying amount, recoverable amount and impairment loss. illustrate relevant journal entries. [10 marks] [5 marks] Propose relevant disclosure in financial statements as at 31 December 2020 based on MFRS136. [5 marks]