Background of company. Rose Bhd Rose Bhd is a company which has expanded rapidly in business and is a very well-known for the cosmetics line in Malaysia. "Rose" has been developed by Rose Bhd and has sky rocketed into the hearts of many women until today. The company is established by the founder, Madam Fatima All since 2010. With beauty items such as Rose Cantik, Rose Jelita and Rose Ayu as well as the makeup line which includes matte lipsticks, blusher, pressed cake powders and many more. There is practically everything for a woman who wants to look good. "Rose" is not only certified Halal by Jakim, but it is also quite affordable. Research and development Rose Bhd is currently planning to diversify its makeup line by introducing new glowing serum. The five workers recruited were send for an intensive training on 1 July 2020 to ensure that they were able to produce high quality serum with approved ingredients. Rose Bhd paid RM3,000 for each of the five workers' training fees. Rose Bhd is planning to capitalise the training expenditure as the company's intangible asset. Construction of new building On 1 August 2017, Rose Bhd commenced a project to construct her own building that was expected to take 3 years to complete. To finance the project, Rose Bhd has took a bank loan of RM10,000,000 at 10% interest per annum on 1 October2018 for a period of 2 years. On the same date, Rose Bhd has banked the cash and earned interest of RM30,000 for the year end 2018 and RM180,000 for the year end 2019. Due to shortage of materials and bad weather condition, the construction was suspended from 1 August 2019 until 31 October 2019. The construction was completed on 31 July 2020. Acquisition of non-current assets Rose Bhd has gradually increased its investment in various non-current assets to diversify its business. a. Rose Bhd has acquired a special machine to produce a famous scarve brand "Comel costing RM500,000. The special machine was purchased on 1 July 2019 and has an estimated useful life of 10 years. A government grant of RM50,000 was received to finance part of the purchase. b. On 1 January 2019, Rose Bhd purchased a 3-storey building costing RM800,000 for cash. On the same date, Rose Bhd decided to occupy the second and third floor of the building for its business purpose and decided to rent out the first floor to MK Trading. Each floor of the building can be sold separately. The estimated useful life of the building is 40 years c. On 1 August 2020, Rose Bhd acquired new equipment with useful life of 10 years to be used for research and development of its product. The cost of the equipment is SGD 2