Bintang Berhad required funds to finance a new project that involves a huge amount of capital. The only possible way of raising funds is through the sale and leaseback of its head office building for a period of 10 years. The lease payments of RM1 million are to be made at the end of the lease period. The current fair value of the building is RM10 million and the carrying value is RM8.5 million. The interest rate implicit in the lease is 4.5%, while the incremental borrowing rate for Bintang Berhad is 5.5%.

Advise Bintang Berhad on how to account for the above sale and leaseback transaction, in the company's financial statements, if the office building was to be sold at the fair value of RM10 million and: i. Obligasi pelaksanaan tidak dipenuhi/ Performance obligations are not satisfied.

ii. Obligasi pelaksanaan dipenuhi/ Performance obligations are satisfied.

If the performance obligations are satisfied, advise Bintang Berhad on how to account for the above sale and leaseback in the company's financial statements when the building is sold for the following amount: i. RM9 juta/ million

ii. RM11 juta/ million

Explain the impact of IFRS16 Leases (that replace MFRS117 Leases beginning of the year 2019) to the financial statements of a company.

How IFRS16 Leases is different from FRS102 Leases, the financial reporting standard applicable in the UK?