Romely Bhd Romely Bhd was established in the year 2000 to produce halal, hygienic and quality products for the local market in Malaysia. Since then, all their products have been sold under the Romely brand. Among their most popular products are burgers, frankfurter, nuggets and meatballs. The company owned 14 acres of land in SME Industrial Park, Mukim Niaga, Kuala Lumpur. Eight (8) acres are allocated for the construction of a high-tech plant. Two (2) acres are for constructing an office building; the remaining is for other purposes, such as high-tech water waste treatment plants, a logistics docking bay, staff or visitor parking and a security office. Romely Bhd financially closed its account on 31 December each year. The high-tech plant Romely Bhd's high-tech plant is furnished with a fully automated system that can process thirty (30) tonnes of raw materials per hour. This proud achievement has been acknowledged as the first company in Southeast Asia countries to have high-tech performance plants. For visitors, this plant is also equipped with an auditorium with a capacity of 300 seats and a viewing deck. The construction of the plant was completed in year 2017. Research and Development As one of the primary food brands in Malaysia, Romely Bhd has allocated enormous cash for the research and development of its product. All the research and development activities were conducted in a 2-storey building that was purchased on 1 January 2009 at a cost of RM2,500,000. The building has an estimated useful life of 50 years and is depreciated on a straight-line basis. The company adopted the cost model to measure the building. Each floor of the building can be sold separately. At the end of 2016, Romely Bhd successfully created an invention for the new packaging of its product. On 1 January 2017, the company received a patent that gave exclusive rights to that invention for twenty years. One year later, Romely Bhd sold all of the rights to the patent to Kejora Bhd for RM3,000,000. Kejora Bhd paid RM400,000 to a legal firm to help ensure that the right is transferred correctly. The patent will bring benefit to Kejora Bhd for five years. Kejora Bhd decided to sell the patent for RM200,000 at the end of its useful life. On 31 December 2018, another company offered to pay Kejora Bhd RM4,000,000 for this patent, but the offer was rejected on the basis that the offering price was too low. 2 Office building On 1 June 2015, Romely Bhd planned to construct a 5-storey office building for all its administrative staff on the 2 acres of land. The estimated cost of construction was RM5,000,000, excluding the borrowing cost. In order to finance the construction, Romely Bhd obtained a 5\% 2-years term loan of RM3,000,000 on 1 October 2015. The company invested RM1,000,000 of the loan amount on the same date in a 4\% 9-months fixed deposit. On 1 January 2016, Romely Bhd commenced construction of the building which was completed on 31 December 2017. However, the 5-storey office building was only used by Romely Bhd on 1 January 2019. On that date, Romely Bhd relocated its research and development activities from the 2-storey building to the newly completed 5-storey office building. The 2-storey building was then used to rent out to tenants. The fair value of the 2-storey building as of that date was RM2,800,000. Halal, hygienic and quality products As part of the government initiatives to promote and expand halal industries in Malaysia, the government has awarded Romely Bhd an unconditional government grant of RM200,000 to finance the purchase of a hand-cleaning machine to guarantee optimal hand hygiene of the workers upon entering the production area. The cost of the machine is RM500,000. Romely Bhd owned four vans for production and marketing activities. Since one of the vans is not fully utilised, Romely Bhd decided on 1 November 2018 to sell the van. On 31 December 2018, Romely Bhd actively advertised the van at a reasonable price, slightly below the market value. 6. Discuss the possible accounting treatment for the Government Grant received by Romely Bhd to partly finance the purchase of the hand-cleaning machine in accordance with MFRS 120 Accounting for Government Grants and Disclosure of Government Assistance