During the year ended 31 December 2021, High Bhd acquired the following assets: Date Assets acquired Amount 1 January 2021 10,000 shares in Media Bhd which are to be held for trading purposes RM100,000 1 April 2021 Machinery with an estimated useful life of 10 years RM150,000 1 July 2021 A piece of freehold land RM800,000 Additional information: The accounting

Sep 8, 2023

  1. During the year ended 31 December 2021, High Bhd acquired the following assets: 

 

Date 

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During the year ended 31 December 2021, High Bhd acquired the following assets: Date Assets acquired Amount 1 January 2021 10,000 shares in Media Bhd which are to be held for trading purposes RM100,000 1 April 2021 Machinery with an estimated useful life of 10 years RM150,000 1 July 2021 A piece of freehold land RM800,000 Additional information: The accounting
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Assets acquired 

Amount 

1 January 2021 

10,000 shares in Media Bhd which are to be held for trading purposes 

RM100,000 

1 April 2021 

Machinery with an estimated useful life of 10 years 

RM150,000 

1 July 2021 

A piece of freehold land 

RM800,000 

 

Additional information: 

The accounting policies of High Bhd are as follows: 

  • Depreciation of machinery is based on the straight line method and full year depreciation is to be provided in the year of purchase. 
  • The revaluation method is adopted for land. 
  • Financial assets are classified at fair value through profit or loss. 

The fair values of the assets at the year end were as follows: 

10,000 shares in Medium Bhd 

RM120,000 

Freehold land 

RM900,000 

 

Required: 

  1. Briefly explain the difference between financial assets and non-financial assets. 
  2. Explain the accounting treatment for the above assets for the year ended 31 December 2021.

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