Teleko Bhd was established in Kuala Berang, Terengganu in the year 2000. In 2009, Teleko Bhd was listed in the Bursa Malaysia listing under the consumer products category. Teleko Bhd has been well- known in the manufacturing of bread under the brand name Fresh-Bread and provides the product daily throughout Malaysia. It provides variety of breads that was manufactured two times a day in its factory located in Kuala Berang.

On 1 January 2012, Teleko Bhd bought a new bread making machine which was manufactured in Singapore, at the price of RM55 million. The useful life of the machine was estimated to be five years with no salvage value (residual value). Teleko Bhds policy is to record its non-current asset using cost model and the accounting year-end for Teleko Bhd is 31 December.

During the month of December 2012, Terengganu was affected by the monsoon season. The area of Kuala Berang experienced heavy flood and Teleko Bhds bread making factory was also affected. On 31 December 2012, the bread making machine, which was placed in the affected factory showed conditions of impairment. The estimated recoverable amount was carried out which indicated that the fair value of the equipment was RM28million, the expected decommission and transportation cost was RM1 million and the estimated present value of the future economic benefits was RM29 million.

In December 2014, there is a sudden rise of the demand for bread in Malaysia and the production of Fresh-Bread has increased tremendously. Therefore, at 31 December 2014, the recoverable amount based on value in use for the bread making machine is expected to be RM45 million.

Required:

1. Calculate the impairment loss (if any) and the reversal of impairment loss (if any).
2. Prepare the journal entry to record the calculation in (a).
3. Prepare the extract of the Statement of Profit or Loss and Other Comprehensive Income and the Statement of Financial Position for each of the year ending 31 December 2012 to 2016.
4. Discuss the journal entry for the impairment loss of the bread making machine if Teleko Bhd used revaluation model to record its non-current assets.

(Note : Show all your workings)