Question
april 14, company abc acquired 20% of rm 8 million outlet through bank loan for 6 years period with 7% interest per annum. the 20%
april 14, company abc acquired 20% of rm 8 million outlet through bank loan for 6 years period with 7% interest per annum. the 20% outlet consist of 4 outlet with remaining useful life of 32 years. in october 14, due to some financial problem, the management decided to leased out the four outlet under finance leased agreement. the fair value of outlet as at the date was rm 1.5 million. the annual installment of rm 150000 can support the payment of interest on loan.
abc bhd adopts cost medel for its ppe and fair value model for its investment property. depreciation ppe will be provided on a straight line method based on monthly basis.
- abc acquired 4 outlet through bank loan for 6 years period. discuss classification and presentation of 4 outlet.
- explain accounting treatment for the interest rate of 7% per annum
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