Financial Accounting & Reporting 2: Plant, Property and Equipment

Fisheries Bhd is a small listed company involves in fishing and selling fish to the public via retail outlets. The company owns a building that was acquired in early September 2014 for RM1,200,000, with an estimated useful life of 20 years. It also possesses two boats, with details as below:

• Mirabella Boat that was purchased for RM600,000 on 8 February 2015; and
• Fleur Boat, a qualifying asset under MFRS 123 Borrowing Costs, constructed by Fisheries Bhd from 1 March 2016 to 30 November 2016.

The company had the following outstanding loans as at 31 December 2016:

Bank Loan amount Interest Date loan raised Status of loan (RM) rate (%) General loan: TZ Bank 400,000 12 1 January 2015 Date loan settled: 25 July 2016 ZE Bank 450.000 15 1 October 2015 Ongoing Construction loan: TZ Bank 500.000 12 1 April 2016 Ongoing Construction costs of the boat include: Detail Amount (RM) Payment date Purchase of materials 570,000 1 March 2016 Cost of labour 240.000 5 June 2016 Other expenditures 270,000 20 July 2016