Question 2

FR Constructions Bhd prepares its interim report on a quarterly basis. Its current financial year ends on 30 September 2019. The business bought two machines costing RM500,000 each on 1 January 2019. The company took up RM1,200,000 5% loan on 1 October 2018 specifically to finance the purchase of the machines where the payment period is for 5 years. There is no outstanding loan repayment at year end. The company also paid shipment costs of RM100,000 which included RM25,000 shipment insurance. The machines have an estimated useful life of 10 years and a scrap value of 10% of the purchase price.

b. Determine the reporting periods for interim and comparative financial reports for statement of profit or loss and other comprehensive income for the second and third quarter for the financial year ended 30 September 2019.

So, im confused on the questionn, as there is no profit? since it wanted statement of profit or lost?

Answer rating: 100% (QA)

The Answer is in the image, click to view ... View the full answer