Section B VTL Corporation commits itself to a plan to sell its telecommunications facilities and has obtained a firm purchase commitment. But the buyer unexpectedly requests an environmental survey to confirm that no environment issues are involved in the wireless facilities before the buyer will complete the purchase. This new condition imposed by the buyer is expected to extend the period required the sale beyond one year. What conditions, if applicable. will allow the telecommunication facilities to be classified as held for sale? Your answer Feno Bhd considers a restructuring plan to commit a disposal of one of its plant and its financial implication. The carrying amount of the plant is RM688.800. The plant's value in use before the reclassification is RM660.000. Feno expects the fair value of the plant is RM680.000 while its cost to sell is RM25.000. Determine how should Feno Bhd account for the impairment loss for the plant? Your answer Sobe Bhd advanced a loan to a customer for RM2.5 million but the customer failed to repay the debt. Sobe Bhd took possession of the customer's property as security and it intends to sell to external market to recover the debt. However, certain repairs and maintenance are required before the property can be disposed of. After the repairs and maintenance are completed, the property is classified as held for sale, however, before a firm purchase commitment is obtained, Sobe Bhd becomes aware of certain issues requiring remediation. Sobe Bhd remains highly committed to sell the property, but does not have the ability to transfer the asset to a buyer until after the remediation is completed. Discuss the appropriate classification and measurement treatment for the property Your answer Back Submit