QUESTION 4 ENJOI Company prepares its financial statements on 31st March each year. The following events have occurred which are relevant to the year ended 31st March 2019: i) On 1st April 2018, ENJOI purchased a new head office property for RM60 million. The company rented out the top three floors of the property to a third party. The annual rental receivable by ENJOI was RM2 million, starting on 31st March 2019. The top three floors of the property were capable of being sold in a separate transaction. On 1st April 2018, the directors of ENJOI estimated that the initial cost of the property should be allocated as follows, for accounting purposes: RM (million) Top three floors of building 15 Remainder buildings component 20 Remainder land component 25 60 Total initial cost On 31st March 2019, the property had an estimated total fair value of RM64 million. The directors consider that 25% of this fair value was attributable to the top three floors of the property. The directors wish to use the cost model for measuring property, plant and equipment and the fair value model for measuring investment property. ENJOI depreciates the buildings component of properties over an estimated useful life of 50 years, with no estimated residual value. The rental payable to ENJOI on 31st March 2019 was paid in accordance with the terms of the rental contract. (10 marks) ii) On 1st April 2018, ENJOI purchased a brand from a competitor for an agreed price of RM80 million. The directors of ENJOI believe that the useful life of the brand is indefinite. On 31st March 2019, no reliable estimate of its selling price was available but the directors of ENJOI estimated that the value in use of the brand was RM85 million. The directors of ENJOI wish to use the fair value model for measuring intangible assets whenever permitted by the MFRS. (5 marks) Required: Explain how the above events should be reported in the financial statements of ENJOI Company for the year ended 31 March 2019. Show the relevant journal entries and cite the relevant MFRSS to support your answers. (Total 15 marks)