The following notes are relevant:

$(1)$Non$-$current assets$-$tangible:

$($a$)$The$15-$year leasehold property was acquired on$1\mathrm{.}4\mathrm{.}2021$at a cost of RM$30$million$.$ The accounting policy is to revalue the property at fair value at each year$$s end. The valuation in the trial balance of RM$25\mathrm{.}2$million as at$31\mathrm{.}3\mathrm{.}2022$led to an impairment charge of RM$2\mathrm{.}8$million which was reported in the statement of profit or loss and other comprehensive income in year ended$31\mathrm{.}3\mathrm{.}2022.$At$31\mathrm{.}3\mathrm{.}2023$the property was valued at RM$24\mathrm{.}9$million$.($b$)$On$1\mathrm{.}10\mathrm{.}2022$an item of machinery was disposed of for RM$5$million cash. The proceeds have been treated as credit to sales revenue by Flash Sdn Bhd$.$The actual cost and accumulated depreciation of the machinery as of$1\mathrm{.}4\mathrm{.}2022$is RM$12$million and RM$3\mathrm{.}6$million respectively. The company has not accounted for the disposal of machinery.On$15\mathrm{.}10\mathrm{.}2022,$Flash Sdn Bhd started construction on a new plant for its own use and

has paid the following costs:

Description of cost: RM$000$

Materials$100$

Labour$160$

General overheads$60$

$------------$

$320$

$=======$

On investigation, Flash Sdn Bhd found that$20\%$of the total material cost was incurred

on the faulty designed work and, as a result of this, it is estimated that approximately

$10\%$of the labour costs was incurred related to this work. The plant was completed on

$31\mathrm{.}12\mathrm{.}2022$and started use on$1\mathrm{.}1\mathrm{.}2023.$Flash Sdn Bhd has not accounted for this

transaction in their book.$($d$)$On$31\mathrm{.}3\mathrm{.}2023,$Flash Sdn Bhd decided to transfer its freehold land to investment

property and the fair value model for investment property is used. The fair value of its

land at the end of the year was valued at RM$2\mathrm{.}3$million$.$

$($e$)$Plant and equipment is depreciated at$25\%$per annum using the reducing balance

method and machinery is depreciated at$10\%$per annum using the straight$-$line method.

No depreciation has yet been charged on any non$-$current assets for the year ended

$31\mathrm{.}3\mathrm{.}2023.$All depreciation expenses and related cost incurred to the acquisition,

construction and disposal of non$-$current asset are charged to cost of sales.

$2.$Non$-$current assets$$intangible:

In addition to the capitalized development expenditure of RM$14\mathrm{.}3$million$,$ further research and

development costs were incurred on a new project which commenced on$1\mathrm{.}4\mathrm{.}2022.$The

research stage of the new project lasted until$30\mathrm{.}7\mathrm{.}2022$and incurred RM$100,000$per month.

From that date the project incurred development costs of RM$600,000$per month. On

$1\mathrm{.}11\mathrm{.}2022$the directors became confident that the project would be successful and yield a

profit well in excess of its costs. The project was fully developed and completed at

$31\mathrm{.}12\mathrm{.}2022.$

Capitalized development expenditure is amortized at$20\%$per annum using the straight$-$line

method. All expenses for research and development is charged to cost of sales.

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

BBAC$2034/$Group Assignment$/$Jan$2024$Page$7$of$7$

$3.$Revenue

Flash Sdn Bhd$$s revenue includes RM$8$million for goods it sold acting as an agent for

Highwood Sdn Bhd$.$Flash earned a commission of$20\%$on these sales and remitted the

difference to Highwood Sdn Bhd$.$

$4.$Non$-$current liability$-6\%$loan note

Flash Sdn Bhd issued a RM$25$million$6\%$loan note on$1\mathrm{.}4\mathrm{.}2022.$The loan will be redeemed

on$31\mathrm{.}3\mathrm{.}2025$at a premium which gives an effective interest rate on the loan of$8\%.$

$5.$Income tax expense

A provision for income tax for the year ended$31\mathrm{.}3\mathrm{.}2023$of RM$2\mathrm{.}5$million is required. The

balance of current tax in the trial balance represents the under$/$over provision of the income

tax liability for the year ended$31\mathrm{.}3\mathrm{.}2022.$

Note: No deferred tax apply for this question.

Required:

a$)$ Prepare the journal entries to record all the transactions as stated above. $(35$ marks$)$

b$)$ Prepare the statement of profit or loss and other comprehensive income for the year ended

$31$st March $2023.(17$ marks$)$

c$)$ Prepare the statement of changes in equity as at $31$st March $2023$ for Flash Sdn Bhd$.$

$(8$ marks$)$

d$)$ Prepare the statement of financial position as at $31$st March $2023$ for Flash Sdn Bhd$.(30$ marks$)$