Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6. (a) On 1 January 2018, Fairy Sdn. Bhd. acquired an intangible asset which has a fair value of RM4,000,000 at the date of acquisition.
6. (a) On 1 January 2018, Fairy Sdn. Bhd. acquired an intangible asset which has a fair value of RM4,000,000 at the date of acquisition. The asset's fair value on 31 December 2019 is RM4,220,000. On 31 December 2020, because of adverse press reports the asset deemed to have a recoverable amount of only RM2,950,000. The press report were later found to be untrue. This has improve the recoverable value of the asset to be RM3,220,000 on 31 December 2021. Fairy Sdn. Bhd. uses revaluation model in its subsequent measurement. Required: Prepare journal entries for the intangible asset from year 2018 until 2021 for Fairy Sdn. Bhd. if the asset's useful life is: i. 10 years ii. Indefinite. (10 marks) (5 marks) (b) Explain the concept of forward-looking 'expected loss' model introduced under MFRS 9 Financial Instruments which replaced the incurred loss' model in MFRS 139. (10 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started