QUESTION 1

i- The Malaysian Accounting Standards Board (MASB) is established under the Financial Reporting Act 1997 (Act) as an independent authority to develop and issue accounting and financial reporting standards in Malaysia. Write a brief note regarding the functions of MASB as provided under the Act?

ii- On 1 July 2000, XYZ Bhd acquired a building costing RM6,800,000. The building is estimated to have a useful life of 50 years. It was occupied as the headquarters for XYZ Bhd business operations in Alor Gajah, Melaka. In a recent board meeting in January 2018, the board of directors of XYZ Bhd had agreed to move the company's headquarters to a new building located in Bandar Baru Bangi, Selangor. Since then the company has been actively seeking a buyer. Furthermore, advertisements have also been placed to speed up the sale of the building. The building in Alor Gajah has been vacated in May 2018 and a buyer has been located. As at 30 June 2018, the fair value of the building is RM4,240,000. XYZ Bhd estimated the following fees will be incurred in order to sell the building: ? Property brokerage fee of RM90,000; and ? Legal fee of RM52,000 The net carrying amount of the property, plant and equipment of XYZ Bhd as at 30 June 2018 is RM573,562,000. This amount has not been adjusted for any reclassification. Note: The financial year of XYZ Bhd ends on 30 June each year.

Required:

a. Explain whether as at 30 June 2018, the building in Alor Gajah can be classified as a non-current asset held for sale in accordance with MFRS 5 Non-current Asset Held for Sale and Discontinued Operations.

b. Prepare the calculation for the value of the building to be recognised in the financial statement of XYZ Bhd as at 30 June 2018.

c. Prepare an extract of the company's Statement of Financial Position and Statement of Profit or Loss for the year ended 30 June 2018 showing the amount to be disclosed regarding the measurement of the building in Alor Gajah.