The following balances were extracted from the books of Green Bhd as at 31 December 2019 Particulars Debit (RM) Credit (RM) Ordinary share capital 19,000,000 8 Redeemable Preference shares 7,000,000 General reserves as at 1 January 2019 4,800,000 Retained Profit as at 1 January 2019 37,006,000 Asset Revaluation Reserve land as at 1 January 2019 3,000,000 7 Bank loan 7,000,000 Bank overdraft 2,400,000 Bank 36,750,000 Investments 2,650,000 Development expenditure Project Sinar 3,000,000 Investment properties at valuation 2,000,000 Land 23,000,000 Building at cost 32,500,000 Building Accumulated Depreciation as at 1 January 2019 6,500,000 Fixtures and Fittings at cost 4,900,000 Fixtures and Fittings Accumulated Depreciation as at 1 January 2019 1,837,500 Plants at cost 12,500,000 Plants Accumulated Depreciation as at 1 January 2019 5,800,000 Allowance for Impairment of trade receivable as at 31 December 2019 600,500 Additional information The directors are recommending the followings as at 31 December 2019 Final dividend of 1 5 on the ordinary share capital RM100,000 will be transferred to general reserves Land was measured using revaluation model During the year, an independent valuer revalued the freehold land to RM25,000,000 and this has not been recorded for the year For all non current assets, the depreciation is to be charged as follows based on straight line method, monthly basis Building 50 years Fixtures and Fittings 8 years Plants 20 years As at year end, inventories has a net realizable value of RM13,800,000 Buildings was measured using cost model On 1 January 2019, the fair value of the building is RM33,000,000 Fixtures and fittings are measured using cost model Plants are measured using cost model One of the plants that is located in Johor was acquired on 1 January 2015 at a cost of RM2,500,000 On 1 January 2019, there were indications that the production outputs of the plant in Johor are declining For the plant in Johor, the value in use was calculated to be RM1,700,000 and the fair value less cost to sale as at that date was RM1,800,000 No record of this transaction has been made Research and development On 1 February 2019, a new research and development project Mentari is initiated The research stage of the new project lasted until 30 June 2019 From beginning the project incurred cost of RM100,000 per month until year end On 1 July 2019, the directors are confident that the new project would be a success and will generate profit in the future The new project is still in development as at year end All expenses paid by cheque No recording has been made for the year Development expenditure Project Sinar in the list of balances met the criteria for capitalisation The product entered the market on 1 September 2019 No amortisation has been provided Capitalised development expenditure is amortised over 10 years using the straight line method All amortisation and research expenses are charged to selling and distribution expenses Provisions are to be made for directors remuneration of RM5,000,000 and audit fee of RM1,000,000 Interest on bank loan is yet to be provided The directors are forecasting the declining in sales in the following year as a result of the increase in competition in the market Therefore, a provision of future operating losses of RM2,000,000 are to be provided at year end The long term foreign loan is in Singapore dollar (SGD) taken from Lion Bank Ltd on 1 January 2019 when the exchange rate was RM3 10 SGD1 00 At the end of the financial year, the closing rate was RM3 20 SGD1 00 During the year, it was found that a machine which was acquired on 1 July 2018 for RM500,000 was wrongly recorded as administrative expenses No adjustment had been made to correct the error However, the payment was settled and properly recorded last year The machine has a useful life of 10 years Early 2019, the company was sued by one of the employees for damages As at August 2019, the companys lawyers are of the opinion that the employee has a strong case and it is more likely that the company will lose the case The loss is estimated to be RM850,000 Investment properties are measured using fair value model As at 31 December 2019 the fair value of investment properties was RM2,300,000 No record has been made It has been confirmed that the tax expense for the current year is RM820,000 Statement of Changes in Equity for the year ended 31 December 2019 Show notes on property, plant and equipment

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The following balances were extracted from the books of Green Bhd as at 31 December 2019. Particulars Debit (RM) Credit (RM) Ordinary share capital 19,000,000

The following balances were extracted from the books of Green Bhd as at 31 December 2019.

Particulars	Debit (RM)	Credit (RM)
Ordinary share capital		19,000,000
8% Redeemable Preference shares		7,000,000
General reserves as at 1 January 2019		4,800,000
Retained Profit as at 1 January 2019		37,006,000
Asset Revaluation Reserve land as at 1 January 2019		3,000,000
7% Bank loan		7,000,000
Bank overdraft		2,400,000
Bank	36,750,000
Investments	2,650,000
Development expenditure Project Sinar	3,000,000
Investment properties at valuation	2,000,000
Land	23,000,000
Building at cost	32,500,000
Building - Accumulated Depreciation as at 1 January 2019		6,500,000
Fixtures and Fittings at cost	4,900,000
Fixtures and Fittings - Accumulated Depreciation as at 1 January 2019		1,837,500
Plants at cost	12,500,000
Plants - Accumulated Depreciation as at 1 January 2019		5,800,000
Allowance for Impairment of trade receivable as at 31 December 2019		600,500

Additional information:

The directors are recommending the followings as at 31 December 2019:
1. Final dividend of 1.5% on the ordinary share capital
1. RM100,000 will be transferred to general reserves

Land was measured using revaluation model. During the year, an independent valuer revalued the freehold land to RM25,000,000 and this has not been recorded for the year.
For all non-current assets, the depreciation is to be charged as follows based on straight line method, monthly basis:
1. Building: 50 years.
1. Fixtures and Fittings: 8 years

1. Plants: 20 years

As at year end, inventories has a net realizable value of RM13,800,000.

Buildings was measured using cost model. On 1 January 2019, the fair value of the building is RM33,000,000.
Fixtures and fittings are measured using cost model.

Plants are measured using cost model. One of the plants that is located in Johor was acquired on 1 January 2015 at a cost of RM2,500,000. On 1 January 2019, there were indications that the production outputs of the plant in Johor are declining. For the plant in Johor, the value in use was calculated to be RM1,700,000 and the fair value less cost to sale as at that date was RM1,800,000. No record of this transaction has been made.

Research and development.

1. On 1 February 2019, a new research and development project Mentari is initiated. The research stage of the new project lasted until 30 June 2019. From beginning the project incurred cost of RM100,000 per month until year end. On 1 July 2019, the directors are confident that the new project would be a success and will generate profit in the future. The new project is still in development as at year end. All expenses paid by cheque. No recording has been made for the year.

1. Development expenditure Project Sinar in the list of balances met the criteria for capitalisation. The product entered the market on 1 September 2019. No amortisation has been provided.

1. Capitalised development expenditure is amortised over 10 years using the straight- line method. All amortisation and research expenses are charged to selling and distribution expenses.
2. Provisions are to be made for directors remuneration of RM5,000,000 and audit fee of RM1,000,000. Interest on bank loan is yet to be provided.
3. The directors are forecasting the declining in sales in the following year as a result of the increase in competition in the market. Therefore, a provision of future operating losses of RM2,000,000 are to be provided at year end.
4. The long term foreign loan is in Singapore dollar (SGD) taken from Lion Bank Ltd on 1 January 2019 when the exchange rate was RM3.10:SGD1.00. At the end of the financial year, the closing rate was RM3.20:SGD1.00.
5. During the year, it was found that a machine which was acquired on 1 July 2018 for RM500,000 was wrongly recorded as administrative expenses. No adjustment had been made to correct the error. However, the payment was settled and properly recorded last year. The machine has a useful life of 10 years.
6. Early 2019, the company was sued by one of the employees for damages. As at August 2019, the companys lawyers are of the opinion that the employee has a strong case and it is more likely that the company will lose the case. The loss is estimated to be RM850,000.
7. Investment properties are measured using fair value model. As at 31 December 2019 the fair value of investment properties was RM2,300,000. No record has been made.
8. It has been confirmed that the tax expense for the current year is RM820,000
9. Statement of Changes in Equity for the year ended 31 December 2019
10. Show notes on property, plant and equipment.