On 1 January 2013, Jitu Bhd received a government grant of RM5,000,000 for the purchase of a machinery costing RM8,000,000. The useful life of the machinery was five (5) years. The company adopts the deferred income method for the treatment of the government grant. On 1 January 2015, the company fails to comply with the conditions attached to the grant by the government. On 1 July 2013, Jitu Bhd started construction of a 10-storey building in Gurun. The building will be rented to third parties when it is completed. The building was expected to have a useful life of 50 years with no salvage value. In order to finance part of the construction, Jitu Bhd obtained a 3-year term loan of RM15,000,000 from a local bank on 1 May 2013. The effective interest rate was 8% per annum. On 1 January 2014, Jitu Bhd suspended the construction of the building due to shortage of raw materials for 3 months. Since the construction was suspended, the company temporarily invested part of the money on 1 January 2014 in a 6-month fixed deposit that earned an interest income of RM300,000. The construction recommenced on 1 April 2014 after the raw materials were available for construction. The building was finally completed on 30 September 2015 and was ready for its intended use. The costs of construction excluding borrowing cost were RM28,000,000. The construction cost also include rectification cost of RM100,000. The newly completed building was rented out to third parties on 1 January 2016. However, there are still many vacant units. The company then decided to occupy the vacant units. The fair value of the building as at that date was RM30,000,000 and RM31,000,000 on 30 June 2016. The company's policy is to adopt revaluation model for property and fair value model for investment property. Jitu Bhd has a plant which meets the criteria for classification as 'held for sale' in the financial statements as at 30 June 2015. Due to the advancement in technology and new technology plant being introduced in the market, Jitu Bhd's plant is not up to mark. Jitu Bhd is still committed to sell the plant, thus on 1 March 2016 decided to make modifications and technological changes to the plant so that the plant will be competitive with the new plant in the market. It will also increase the production capacity of the plant. The modification works will take 6 months to complete. The modification cost will increase the carrying amount and the company is not willing to reduce the price to it fair value. The plant was not sold as at 30 June 2016.