On 1 January 2014, Guru Bd acquired a plant costing RM10 million, The economic life was estimated to be 10 years with no scrap value at the end of its useful life. On 1 January 2018, the remaining life was estimated to be 2 years while the scrap value was estimated to be RM800,000.

Required: Identify the type of areas under MFRS 108 Accounting Policies, changes in Accounting Estimates and Errors. (2 marks)

Discuss the accounting treatment for the above transaction. (8 marks)