COURSE: DIPLOMA IN ACCOUNTING

SUBJECT: FINANCIAL ACCOUNTING & REPORTING IV

On 1 January 2011, Bersih Bhd purchased a five-storey building in Perlis for RM800,000. The estimated useful life of the building is 25 years. One floor was used for administrative purposes of Bersih Bhd and the rest of the floor was rented out to tenants. Beginning 1.1.2016, Bersih Bhd used all the four floors of the building for production and supply of its goods. The market value of building in January 2012, 2014 and 2016 was RM950,000, RM1 million and RM1.5 million, respectively. Bersih Bhd uses the fair value model to measure its investment properties. It is the policy of Bersih Bhd to depreciate its property, plant and equipment using straight line method. Required: Explain how Bersih Bhd records the building in 2011, 2012, 2014 and 2016 in its book