Jovi Real Estate Ltd. (Jovi) is a property development company in Malaysia. In 2020, Jovi acquired two parcels of land in Kuala Lumpur for hotel development. Property 1: Since the date of land acquisition, Jovi's board of directors has decided to run the hotel business on their own. The hotel's pre-operation activities begin on January 1, 2022, when the development has been completed and the hotel is available according to the intended use. The hotel's grand opening will take place on July 1, 2022. Property 2: Since the date of land acquisition, Jovi's board of directors has decided to lease the property in order to obtain rental fees. The rental agreement was entered into with Golden Ltd for a period of 18 years to then be operated as a hotel. Based on the rental agreement, in addition to the annual rental fee, Jovi will receive 5% of the hotel's annual operating income.

	Property 1 RM '000	Property 2 RM '000
Cost of land	45,000	80,0000
Construction costs	303,000	267,000
Fair value of land as of December 31, 2022	60,000	100,000
Fair value of building as of December 31, 2022	560,000	340,000
The date of purchase of land	1 July 2020	1 October 2020
Estimated useful life of the property	25 Years	20 Years
Construction completion date	December 2021	June 2022

Jovi adopted the cost model in PSAK 16: Fixed Assets and the fair value model in PSAK 13: Investment Properties (only for buildings). Depreciation using the straight-line method. Instructions: a. Make calculations and presentations on the statement of financial position for (a) land and (b) buildings for each property on Jovi's statement of financial position as of December 31, 2022. b. Explain whether Jovi's application of accounting standards for the two properties is appropriate?