Question
QUESTION 2 Bonus Bhd pays RM80,000 to TLC Bhd acquire a 20-years term golf club membership. The glof club membership is not transferable. Which of
QUESTION 2
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Bonus Bhd pays RM80,000 to TLC Bhd acquire a 20-years term golf club membership. The glof club membership is not transferable. Which of the following accounting treatment of the golf club membership is CORRECT?
A. RM80,000 is recognised as an property, plant and equipment since the golf club membership is used to enrich business networking.
B. The golf club membership has an indefinite useful life and no amortisation is provided on the gold club membership.
C. Bonus Bhd does not reviews the amortisation period, the amortisation method and the residual value for the golf club membership per annum.
D. Bonus Bhd chooses the cost model as its accounting policy in subsequently measuring the golf club membership.
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International Accounting Standards Regulations Financial Reporting
Authors: Greg N. Gregoriou, Mohamed Gaber
1st Edition
0750669837, 978-0750669832
