5. Explain the classification and accounting treatment for the grant received from Badan Kebudayaan Negeri. (5 marks) Accounting Policy Innforest Bhd adopts revaluation/fair value model to record its non-current assets. The grant is treated as related to asset method. The depreciation is using straight line method. The useful life of assets are as follows: Houses 20 years with major maintenance every 5 years. Machine: 10 years with major overhaul every 5 years. The financial year end is on 31 December every year. Balai Rung Seri @ Village Hall Balai Rung Seri which is used as a proud communal function by old Malays was also erected on the same date with the project started. The Balai Rung Seri was sponsored by Badan Kebudayaan Negeri amounting RM100,000. The grant was awarded based on the active involvement of Innforest Bhd in the country's tourism industry and tourism activities for the past several years. The total cost incurred for the Balai Rung Seri was RM200,000