On 1 January 2018, Lanjut Bhd acquired a plant which has an estimated useful life of five years for RM100 million

Subject:AccountingPrice:9.82 Bought3

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On 1 January 2018, Lanjut Bhd acquired a plant which has an estimated useful life of five years for RM100 million. The equipment showed indications of impairment on 31 December 2018. An estimated recoverable amount was carried out and indicated the selling price of equipment was RM54 million, the expected decommission and transportation cost was RM2 million and the estimated present value of the future economic benefits was RM56 million. Due to the sudden increase in demand on the product manufactured by this equipment, the recoverable amount based on value in use is expected to be RM80 million on 31 December 2020. Required: a) Calculate the impairment loss (if any) is as at 31 December 2018. (6 marks) (CLO]:PLOI:C4) b) The assets have shown reversal of impairment loss due to sudden increase in demand. Calculate the reversal (if any) of the impairment loss as at 31 December 2020. (5 marks) (CLOI:PLOI:C4) c) Show the extracts of statement of profit and loss and statement of financial position for each of the years ending 31 December 2018 to 2021. (10 marks) (CLOI:PLOI:C4) d) Describe the indications that an asset may be considered to have reversal of impairment loss within the scope of MERS 136. (4 marks) (CLOI:PLOI:C2)