QUESTION 4 On 1 January 2020, Calm Bhd acquired an asset at cost of RM 1,000,000. On 31 December 2020, the fair value of the asset traded in the active market amounting to RM 1,500,000. The cost model was adopted for property, plant and equipment and fair value model for investment property and agriculture. Required: a. Assume the asset was a trained horse for racing and Calm Bhd is a racing club. The horse can work for the company for a period of 5 years. Justify the relevant MFRS in recognising the asset and explain the relevant accounting treatment. (6 marks) b. Assume the asset was a horse bought for horse breeding and Calm Bhd is a horse breeder company. Justify the relevant MFRS in recognising the asset and explain the relevant accounting treatment. (4 marks) (Total: 10 marks) (Total: 40 marks)