Part A

The following are transactions related to property, plant and equipment of Tulsi Sdn Bhd

occurred during $2023$:

Required:

Based on MFRS $116$ Property, Plant and Equipment, prepare the journal entries for all

transactions above, including depreciation expense for the year ending December $31,2023.$ The

company policy states that the building is depreciated using a straight$-$line method with an

estimated useful life of $40$ years and a residual value of $20\%$ of the cost. Depreciation is fully

charged in the year the asset is acquired, and no depreciation in the year the asset is disposed of$.$

Part B

The financial data of Cilantro Inds Bhd showed that the productivity of a machine used in the

production is different than expected. Therefore, the productivity assessment of the machine was

done in October $2023.$ Data indicated that the machine was acquired at a cost of RM$1,800,000.$

The current accumulated depreciation was RM$995,000,$ the expected machine cost to sell was

RM$35,000,$ and the expected present value of cash flow generated by the machine during the

balance of its useful life of $4$ years was RM$975,000.$

Required:

Explain what Cilantro Inds should do on December $31,2023,$ in accordance with MFRS $136$

Impairment of Assets. Justify your answer.