(a) The critical issues in accounting for the tangible assets are recognizing cost incurred as an expenses or an assets and the measurement of initial costs and subsequent expenditure. MFRS 116 Property, Plant and Equipment provides guidance on these critical issues.

Required:-

(i) State the components of costs of tangible non-current assets at initial recognition.

(ii) State the accounting treatment for subsequent expenditure for tangible non-current assets.

(b) Hamigo Berhad purchased a plant for $8 million on 1 May 2018. The assets is depreciated over 8 years on the straight line basic with no residual value. At 30 April 2019, the assets was revalued to $10.5 million with no changes to useful life. At 30 April 2020, the asset's value has fallen to $6 million.

Required:

Discuss the appropriate accounting treatment to be taken by the entity.