Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following financial statements relate to GoGo Sdn Bhd. Statement of Financial Position as at 31 December: The following information is relevant: i. Statement of
The following financial statements relate to GoGo Sdn Bhd. Statement of Financial Position as at 31 December: The following information is relevant: i. Statement of Comprehensive Income extract for the year ended 31 December 2022: Note: the interest expense includes hire purchase interest. ii. The details of the tanqible non-current assets are: During the year GoGo Sdn Bhd sold a plant for its fair value of RM12 million. The profit on the sale of the plant has been included in operating profit. At the date of the sale it had a carrying value of RM7.4 million based on a previous revaluation of RM8.6 million less the accumulated depreciation of RM1.2 million since the revaluation. The surplus on the revaluation reserve was related entirely to the plant. No other disposals of non-current assets were made during the year. Plant acquired under hire purchase during the year was RM2.0 million. Required: a. Prepare a Statement of Cash Flows using the indirect method for GoGo Sdn Bhd in accordance with MFRS 107 Statement of Cash Flow for the year ended 31 December 2022. (33 marks) b. Discuss the benefits of presenting the cash flow information. (7 marks) The following financial statements relate to GoGo Sdn Bhd. Statement of Financial Position as at 31 December: The following information is relevant: i. Statement of Comprehensive Income extract for the year ended 31 December 2022: Note: the interest expense includes hire purchase interest. ii. The details of the tanqible non-current assets are: During the year GoGo Sdn Bhd sold a plant for its fair value of RM12 million. The profit on the sale of the plant has been included in operating profit. At the date of the sale it had a carrying value of RM7.4 million based on a previous revaluation of RM8.6 million less the accumulated depreciation of RM1.2 million since the revaluation. The surplus on the revaluation reserve was related entirely to the plant. No other disposals of non-current assets were made during the year. Plant acquired under hire purchase during the year was RM2.0 million. Required: a. Prepare a Statement of Cash Flows using the indirect method for GoGo Sdn Bhd in accordance with MFRS 107 Statement of Cash Flow for the year ended 31 December 2022. (33 marks) b. Discuss the benefits of presenting the cash flow information. (7 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started