QUESTION NZ Motor Parts Bhd, a listed company based in Kuala Perlis, produces auto parts and accessories. It has the following trial balance as at 31 December 2020. NZ Motor Parts Bhd Trial Balance as at 31 December 2020 Land and building at cost cost of land RM3,000,000) Accumulated depreciation - building at 1 January 2020 Machinery at cost Accumulated depreciation - machinery at 1 January 2020 Investment property Biological assets Inventories Receivables Bank Ordinary share capital at RM1 each Retained earings Dividend paid Reserves 10% Debentures Payables Sales Cost of sales Administrative expenses Selling and distribution expenses Finance expenses RM RM 6,090,000 1,090.000 1.500.000 450.000 2 2.750,000 380,000 95,000 490,000 4.830,000 5,500,000 2,537.000 1.500,000 1,500 000 2,500.000 1,511,000 9.679.000 3,473,000 2,830,000 542,000 287,000 24,767,000 24,767,000 Additional information: 1. NZ Motor Parts Bhd adopts the revaluation model for its land and building On 2 January 2020, the directors of NZ Motor Parts Bhd decided that the land was revalued to RM4.400,000 and the building was revalued to RM2,400,000 with an expected remaining useful life of 30 years. The straighttine depreciation policy on building will continue It is the policy of the company to measure its machinery and equipment using the cost model and to depredate on a straight-line method over a 10-year period. Since 2015, NZ Motor Parts Bhd has entered into a contract to supply its products to a particular government agency The rising material costs in 2018 have made the contract price to be lower than the costs of production. NZ Motor Parts Bhd has two more years to supply the product at the contract price, which the directors have estimated, will result in the company incurring losses of RM350,000. NZ Motor Parts Bhd has no option to exit the contract 2. 3 4. On 4 January 2020, NZ Motor Parts Bhd purchased a patent from Prohebats at a cost of RM400.000 (inclusive of 10% legal and other attributable costs associated with the filing of the patent). The economic benefits are expected to be received indefinitely from the use of the patent. This transaction has not been recorded yet. NZ Motor Parts Bhd purchased laboratory equipment costing RM850,000 on 1 July 2020. The equipment with an estimated life of 10 years and no residual value, was used in a variety of research projects. The cost of the equipment was treated as part of the cost of sales since it was as part of the research projects. Depreciation on the equipment has not been provided for 5. The current year estimated taxation was RM2,170.000 and interest an debentures for the year had not been paid. Required: Prepare, in accordance with MFRS 101 Presentation of Financial Statements and other relevant Malaysian Financial Reporting Standards: a. Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 b. Statement of Changes in Equity for the year ended 31 December 2020. c Statement of Financial Position as at 31 December 2020 d. Notes to the property, plant and equipment. (Total: 30 marks)