• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Can help me solve this question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Can help me solve this question

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 18, 2020 at 1:25 pm #568666
    malarrathi
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    On 1 January 2016, MYG Bhd bought two office buildings at two new developed commercial areas in
    Petaling Jaya and Subang Jaya. The management has decided to hold the properties with a purpose of
    generating income. The cost for the office building in Petaling Jaya was RM15 million and was estimated to
    have a useful life of 25 years. Legal fees incurred amounted to RM1 million. Due to the highly renowned
    area, the office building’s fair value at the end of 2016 has increased by RM2.5 million. However, due to
    slow economic growth in the area, the value of the building fall down by RM3 million at the end of the
    following year. The office building in Subang Jaya is still under construction and it is expected to complete
    by 2010. As a result, the fair value of the building is not reliably determinable until the construction is
    completed. The company uses the fair value model to value its properties. The company’s financial year
    ends on 31 December.
    (a) Advise whether the buildings could be classified as investment property in accordance with MFRS140
    Investment Property.
    (b) Prepare the related journal entries for the building in Petaling Jaya for the year 2016 and 2017.
    (c) If MYG Bhd decides to use the building in Petaling Jaya for its headquarter on 1 January 2018, briefly
    explain how the decision might affect the accounts of the company.

    April 19, 2020 at 7:46 pm #568781
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    I don’t answer full questions as I don’t think that benefits anyone, sorry. If you let me know what you are specifically struggling with in the question above then I’ll happily help.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • osman-the-zephyr@ on MA Chapter 1 Questions Accounting for Management
  • adebusola on MA Chapter 1 Questions Accounting for Management
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • John Moffat on Discounted Cash Flow Further Aspects, Replacement – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in