Question You are the Financial Controller of Chee Bhd. The company was established about 20 years ago. At the last annual general meeting of the company, a new Managing Director was appointed. The new Managing Director is a non-finance executive with very little knowledge of accounting. He has requested for the past five years financial statements of the company for review. He has prepared a list of issues based on his review as follows: When I look at the statement of financial position of one of the past financial statements, one of the categories of non-current asset is investment properties and another category is property, plant and equipment, in which all other properties are included. It is certain that the company invested in properties, so why do you have two categories for them in the statement of financial position? How did you decide what goes where? A note to the financial statements states that, investment properties are measured at their fair values and not depreciated. Don't all non-current assets have to be depreciated over their estimated useful lives? Another note to the financial statements states that, property included in the property, plant and equipment is measured at cost less accumulated depreciation rather than at fair value. Shouldn't all properties be measured in financial statements on a consistent basis? Also, from a review of the statement of profit or loss, I can't seem to understand the accounting treatment for a project cost. May I know why a project expense was classified as a research cost and not a development cost? Finally, may I understand the rules of recognition for a disposal group under MFRS 5- Non-current assets held for sale and discontinued operations? Required: Provide answers to the issues raised by the Managing Director. You should justify your answers with reference to the relevant MFRSS such as MFRS 116, MFRS 140, MFRS 138 and MFRS 5. (25 marks) [Total: 25 Marks]