CONFIDENTIAL Infrastructure University FINAL EXAMINATION MARCH SEMESTER 2019 PLANT AND MACHINERY VALUATION (REM 3190) (TIME : 2% HOURS) MATRIC NO. IC./ PASSPORT NO. : LECTURER : Sr SITIAMINAH ABD AZIZ ‘GENERAL INSTRUCTIONS “This question booklet consists of 4 printed pages inching this page. Answer ALL questions inthe ANSWER BOOKLET. |. PLEASE DO NOT TURN THIS PAGE AND START THE EXAM UNTIL, YOU ARE TOLD To DOsO. Page lof 4INSTRUCTIONS: ‘rim: 2H0URS.0.arNuTES (00 MARKS) ‘There are FIVE (6) questions, Answer ALL Questions in the Answer BooMet. 1. Define and illustrate the fllowing terms in plant and machinery valation. 8) Age, Effective life and Life (marks) (cLo1PLO1:C1) by Tangible asset and intangible asset. (marks) (CL01-PLO1:C2) ©) intores and Ftings (Smaks) (CLO1PLO1:C2) 2, “Plant and machinery valuiton dictate a Fair Value so that users of the financial Statements can discern information about sn entity investment in its propery”. In elation {othe aforesid statement explain the following purpose of valuation in plant and ‘machinery: 4) Valuation for company accounts and financial statement, (Smarts) (CLorPLO1:c2) 1) Valuation fr receivershipfinsolvency. (Smarks) (clonrLo1-c2) ©) Valuation for merger, acquisition and takeover. (marks) (cL01:PL.01:C2) 4) Valuation fr insurance. (S marks) (CLOLPLOI:C2) SS RENTON areRDOTT mei5. “Whatever plant asset you need to value, one should has the expertise or your asset Valuation, Prom the industial and manufacturing oil refineries, stel makers, mines, rirports, plastics, desalination plants, power station, packaging, warehcuses, storage falites and much more =the role ad function ofa pant and machinery valver required Statuary qualification”, Explain the statement based on the folowing: 4) Entry qualification into the profession. (6 marks) (CLO1-PLOL:C2) ') Difference in approach by an engineer anda value. (S marks) (CLo1-PL01:c2) ©) Role and fiction ofa valuer in valuation of plant and machinery. (S marks) (CLO1:PLO1-C2) 4) Duties of valuerin plant and machinery (5 marks) (C101:PLO1:C2) 4, i) Depreciation is “the systematic allocation of the depreciable amount fan asset over its useful fa" Based on the aforesaid statement briefly explain the follwing: 1) Factor for deprecation. (masks) (CL01:PL01:C2) 1b) Methods of depreciation. (7 marks) (CLO1-PL01:C2) 4i) On March 2018, Syarkat Lum Chang Sdn. hd. purchased an equipment for [RNS0,000 cash. The equipment i expected to produce 100,000 units during is life find has an estimated salvage value of RMS,000. If 30,000 were produced this year ‘what is the amount of depreciation expense? (marks) (LouLor:c3) ee REMSTOMarenIOTT Paged of5. i) “The valuer shall use the Market Value basis for valuing plant, machinery and ‘equipment (PME)" The valuer wil assumed that PME is valued by three (3) fsssumptons. Discuss the assumptions. (@ marks) (CL93:PL01:C3) 4i) On January 1,2015 SyarikatTelvo Sdo. Bhd, purchased equipment costing RNIAS,000 with a wae fife of 10 years and zero salvage value. During 2018, you are fsnigned to determine the remaining useful life ofthe equipment is 3 years with (8 ‘ears total life). Using the straight ine depreciation, calculate the book value and {tabulate the financial report for year 2018, (11 marks) (C103PL01:C3) ++ END OF QUESTIONS *** ee ‘REMSTOOMareRIOTT mae