Great Bhd is a company that specializes in manufacturing forklifts which headquarters office is located at Kuchai Lama, Kuala Lumpur. Great Bhd purchased a property for RM1.6 million on 1 January 2021 for its investment potential and the land element of the cost is RM560,000. The property is expected to have a useful life of 50 years. On 31 December 2021, the fair value of the property has risen to RM1.9 million. The finance manager of Great Bhd would like to know the measurement method permitted under the accounting standard. Although the disclosure of the fair value of investment properties enhances the ability of investors to compare this entity with entities that use the fair value model, it should be noted that the fair value of the investment properties has been estimated using a judgmental methodology and without the use of an independent expert-this may mean that the valuation is more susceptible to bias and manipulation.

a. Propose recommendation to Great Bhd for the accounting treatment of the property in the financial statement for the year ended 31 December 2021, with the relevant accounting standards.

b. Critically evaluate the issues in fair value measurement.