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Quz3 The following scenario relates to questions 14 Apex received a RM10 milion 7.5% loan on 1 Apni 20x7. The loan was specifically issued to
Quz3 The following scenario relates to questions 14 Apex received a RM10 milion 7.5% loan on 1 Apni 20x7. The loan was specifically issued to finance the building of a new store. Construction of the store commenced on 1 May 207 and It was completed and ready for use on 28 February 208, but did not open for trading until 1 Aprill 208. 1. Which of the statements below regarding MFRS 123 Borrowing Costs are correct?? A. Bonrowing costs should cease to be capilarsed once the related asset is substantially complete. B. Borrowing costs must be capitalised if they are directly attributable to non-current assets. C. Borrowing costs may be capitalised if they are directly attributable to qualifying assets. D. Borrowing costs should commence to be capitalised once expenditure is being incurred on the construction of the asset. 2. How much should be recorded as finance costs in the statement of profit or loss for the year ended 31 March 20xs? A. RM125,000. B. RM250,000. C. RM625,000. D. RM750,000. 3. How much interest should be capitalised as part of property, plant and equipment as at 31 March 208 ? A. RM125,000. B. RM250,000. C. RM625,000. D. RM750,000. 4. Apex decided that not all of the funds raised were needed immediately and temporanly invested some of the funds in April 20XT, earning RM40,000 interest. How should the RM40,000 be accounted for in the financial statements of Apex? A. Net off the amount capitalised in property, plant and equipment. B. Taken to the statement of profit or loss as investment/interest income. C. Taken as other comprehensive income. D. Deducted from the outstanding loan amount in the statement of financial position. 5. The costs below are the costs associated with the construction of the factory. Which of the following can NOT be eapitalised? A. Legal fees relating to the side purchase. B. Heaith and safety training for new construction workers. C. Direct labour costs associated with the construction. D. Costs of site preparation. D. RM9,000. 8. Which of the following is NOT an indicator of impairment? A. Advances in the technological environment in which an asset is employed have an adverse impact on its future use. B. An increase in interest rates which increases the discount rate an entity uses. C. The carrying amount of an entty's net assets is higher than the entity's number of shares in issue multiplied by its share price. D. The estimated net realisable value of inventory has been reduced due to fire dantage although this value is greater than its carrying amount. 9. BN has an asset that was classilied as held for sale at 31 March 202. The asset had a carrying amount of RM900 and a fair value of RMB00. The cost of disposal was estimated to be RM50. According to MFRS 5 Non-current Assets Held for Sale and Discontinued Operations, which value should be used for the asset as at 31 March 20x2? A. RM750. B. RM800. C. RM850. D. RU900. 10. Aecording to MFRS 5 Non-current Assets Held for Sale and Discontinued Operations which of the following represent criteria for an asset to be classified as held for sale? (i) Avalable for immediate sale in its present condition. (ii) Sale is highly probable. (ii) The sale is expected to be completed within the next month. (iv) The asset is being marketed at a reasonable price. A. All of the above. B. (i), (ii) and (iii). C. (i). (ii) and (iv). D. (iii), (iii) and (iv)
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