d)Property,Plant & Equipment

Old building Land A Land B Total

Cost / evaluation RM RM RM RM
1 January 2015 4,000,000.00 4,000,000.00 3,000,000.00
Elimination - - -
Revaluation 1,000,000.00 500,000.00 -
31 December 2015 5,000,000.00 4,500,000.00 3,000,000.00

Accumulated Depriciation
1 January 2015 (720,000.00) - -
Elimination - - -
Charge for the year (80,000.00) - (60,000.00)
31 December 2015 800,000.00 -
Carrying amount 4,200,000.00 4,500,000.00 2,940,000.00 11,640,000.00

Workings on Investment Property :-

Factory A Factory B Office A Land B Land c Total

RM RM RM RM RM RM
At Fair Value
1 January 2015 1,500,000.00 9,000,000.00 7,000,000.00 1,000,000.00 2,000,000.00
Disposal - (9,000,000.00) -
Acquisition - - - 10,500,000.00
Changes in fair value 200,000.00 - 500,000.00 50,000.00 1,000,000.00
Transfer to inventory - - - (1,050,000.00)
Balance as at 31/12/2015 1,700,000.00 - 7,500,000.00 - 13,500,000.00 22,700,000.00
a) Melawati Corporation Bhd
Extract Statement of Financial Position as at 31/12/2015
RM RM
Non-current Asset
Property, Plant & Equipment 11,640,000.00
Investment property 22,700,000.00
34,340,000.00

b) Melawati Corporation Bhd

Extract Statement of Profit & Loss and other Comprehensive Income for the year ended 31/12/2015
RM RM
Income
Rental (240,000 + 480,000 + 420,000) 1,140,000.00
Gain on fair value changes in IP 1,750,000.00
Gain on deposit 100,000.00
2,990,000.00

Expenses
Depriciation expenses (140,000.00)
Total Operating Profit 2,850,000.00

Total Operating Profit 5,700,000.00

Other Comprehensive Income:

Surplus on revaluation 1,500,000.00

Total Comprehensive Income 10,050,000.00

c) Investment property is held to earn rental or capital apprieciation or both. Investment property can be measured
by using cost model and fair value model. Based on above situation, the significant policies adopted by the
company for investment property is fair value model. By using fair value model, the investment property
must be measured at fair value (markrt value) at measurement date.

Meanwhile, Property,plant and equipment are asset held by enterprise to generate income or to carry out its
operations which is not for resale in the ordinary course of business. Property plant and equipment can be
measured at cost model and revaluation model. The significant policies adopted by company for PPE is revaluation
model.Revaluation model is an item of PPE whose fair value can be measured shall be carried at its revalued
amount less any subsequent accumulated depreciation and subsequent impairment loss.

Besides that, there is transfer of asset from IP to inventory on 1 st October 2015. Accounting policies for this
change is the property (inventory) deemed cost shall be its fair value at the date of change and the different
between carrying value and fair value recognized in statement of profit or loss.