On 1 January 2017, Gemira Bhd purchased a 5-storey building in Kuala Tahan, Pahang for its research and development activities at a cost of RM5,000,000. The building has a useful life of 20 years. On 31 December 2017, impairment loss of RM1,000,000 is recognised.On 1 January 2019, Gemira Bhd decided to let out the building to third parties and the fair value of the building as at that date is RM4,700,000.

1. Calculate the carrying amount of the 5-storey building in Kuala Tahan, Pahang as at 31 December 2017.

a)RM3,750,000

b)RM4,750,000

c)RM5,750,000

d)RM3,800,000

ANSWER:

2. At the date of change in use, any change in the value shall be recognised as a revaluation in accordance with MFRS 116. Determine the surplus that should be recognized in the revaluation reserves as at 1 January 2019.

a)RM200,000

b)RM0

c)RM79,310

d)RM120,690

ANSWER:

3. Determine the reversal of impairment loss that should be credited in profit or loss account as at 1 January 2019.

a)RM947,368

b)RM1,079,310

c)RM1,000,000

d)RM879,310

ANSWER;