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Question 5 Beta Bhd , a public listed company based in Seremban, manufactures a wide variety of household cooking appliances. The following is the trial
Question Beta Bhd a public listed company based in Seremban, manufactures a wide variety of household cooking appliances. The following is the trial balance of Beta Bhd as at December : The following notes are relevant: i The second halfyear interest on loan notes has not been provided. ii The plant was acquired at a cost of RM on January and had an estimated residual value of RM with a useful life of years. On December Beta Bhd was informed by its major customer that it would no longer be purchasing the cooking appliances from Beta Bhd due to closure of its own business. The estimated net cash inflows to be earned from the plant for the next three years will be:iii. The net realizable value of the plant on December is estimated to be RM Beta Bhds cost of capital is and the following values should be used: iv The land which is carried at a cost of RM million was revalued to RM million on December It is the policy of the company to disclose the land at its fair value. v Of the total investments of RM million, RM million was classified as investment heldfortrading. The fair value at the yearend was RM million. The balance was classified as availableforsale and the market value was RM million. vi The tax expense for the year ended December was estimated at RM including the changes to the deferred tax liability. The net taxable temporary difference on December was RM The tax rate for the year was Deferred tax is not to be provided on the property revaluation. Required: In accordance with the relevant Malaysian Financial Reporting Standards, prepare the following financial statements for the year ended December for Beta Bhd: a Statement of Profit or Loss and Other Comprehensive Income, and b Statement of Financial Position.
Question
Beta Bhd a public listed company based in Seremban, manufactures a wide variety
of household cooking appliances. The following is the trial balance of Beta Bhd as at
December :
The following notes are relevant:
i The second halfyear interest on loan notes has not been
provided.
ii The plant was acquired at a cost of RM on January
and had an estimated residual value of RM with a
useful life of years. On December Beta Bhd was
informed by its major customer that it would no longer be
purchasing the cooking appliances from Beta Bhd due to closure
of its own business. The estimated net cash inflows to be earned
from the plant for the next three years will be:iii. The net realizable value of the plant on December is
estimated to be RM Beta Bhds cost of capital is
and the following values should be used:
iv The land which is carried at a cost of RM million was
revalued to RM million on December It is the policy
of the company to disclose the land at its fair value.
v Of the total investments of RM million, RM million was
classified as investment heldfortrading. The fair value at the
yearend was RM million. The balance was classified as
availableforsale and the market value was RM million.
vi The tax expense for the year ended December was
estimated at RM including the changes to the deferred
tax liability. The net taxable temporary difference on
December was RM The tax rate for the year
was Deferred tax is not to be provided on the property
revaluation.
Required:
In accordance with the relevant Malaysian Financial Reporting Standards, prepare
the following financial statements for the year ended December for Beta
Bhd:
a Statement of Profit or Loss and Other Comprehensive Income, and
b Statement of Financial Position.
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