Non current assets property plant equipment 137510

Non-current Assets
Property, plant & equipment 137,510
Investment property 17,530
Biological asset 73,340
Intangibles (14,000 – 2,800) 11, 200
Current Assets
Inventories 37,820
Trade receivables 59,700
Bank 25,900
363,000
Equity
Shares capital 98,900
Retained profit 220,200
Other reserves 750
Non-current liabilities
8% CIMB loan 10,000
Current liabilities
Trade payables 28,780
Tax payable (10,000 – 1,600 – 6,570) 1,770
Accruals (400 + 200) 600
Provision for claims 2,000
363,000
QUESTION 3 (FAR 460, UiTM, JUNE 2016)
Al Munawwaroh Bhd, a listed company based in Sepang, produces car accessories and is
strictly following the Islamic Manufacturing Process (IMP) guidelines in its production
process. It has the following trial balance as at 31 December 2015.
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Al Munawwaroh Bhd
Trial Balance as at 31 December 2015
RM RM
Land and building at cost (cost of land RM3,000,000) 6,090,000
Accumulated depreciation - building at 1 January 2015 1,090,000
Machinery at cost 1,500,000
Accumulated depreciation - machinery at 1 January 2015 450,000
Investment property 2,750,000
Biological assets 380,000
Inventories 95,000
Receivables 490,000
Bank 4,830,000
Ordinary share capital at RM1 each 5,500,000
Retained earnings 2,537,000
Dividend paid 1,500,000
Reserves 1,500,000
10% Debentures 2,500,000
Payables 1,511,000
Sales 9,679,000
Cost of sales 3,473,000
Administrative expenses 2,830,000
Selling and distribution expenses 542,000
Finance expenses 287,000
24,767,000 24,767,000
Additional information:
1. Al Munawwaroh adopts the revaluation model for its land and building. On 2 January
2015, the directors of Al Munawwaroh decided that the land was revalued to
RM4,400,000 and the building was revalued to RM2,400,000 with an expected
remaining useful life of 30 years. The straight-line depreciation policy on building will
continue.
It is the policy of the company to measure its machinery and equipment using the
cost model and to depreciate on a straight-line method over a 10-year period.
2. Since 2010, Al Munawwaroh has entered into a contract to supply its products to a
particular government agency. The rising material costs in 2013 have made the
contract price to be lower than the costs of production. Al Munawwaroh has two more
years to supply the product at the contract price, which the directors have estimated,
will result in the company incurring losses of RM350,000. Al Munawwaroh has no
option to exit the contract.
3. On 4 January 2015, Al Munawwaroh purchased a patent from Al Toyib at a cost of
RM400,000 (inclusive of 10% legal and other attributable costs associated with the
filing of the patent). The economic benefits are expected to be received indefinitely
from the use of the patent. This transaction has not been recorded yet.
4. Al Munawwaroh purchased laboratory equipment costing RM850,000 on 1 July 2015.
The equipment, with an estimated life of 10 years and no residual value, was used in
a variety of research projects. The cost of the equipment was treated as part of the
cost of sales since it was as part of the research projects. Depreciation on the
equipment has not been provided for.
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5. The current year estimated taxation was RM2,170,000 and interest on debentures for
the year had not been paid.
Required:
Prepare, in accordance with MFRS 101 Presentation of Financial Statements and other
relevant Malaysian Financial Reporting Standards:
a. Statement of Profit or Loss and Other Comprehensive Income for the year ended 31
December 2015.
(10 marks)
b. Statement of Changes in Equity for the year ended 31 December 2015.