COMPREHENSIVE CASE 1

BKAR 3033
SECTOR FIRM’S NAME NATURE OF BUSINESS
INDUSTRIAL MUDA HOLDINGS • Paper and paper packaging industry
PRODUCTION BERHAD • Produced product from recycled waste paper
• Example : high grade industrial brown paper,
corrugated boards, corrugated boxes, multi-wall
paper bags and PE laminated paper
CONSTRUCTION WCE HOLDINGS • Focused on the execution West Cost Expressway
BERHAD project
• The WCE project involves the development of a
233km highway from Banting in Selangor to
Taiping in Perak

PLANTATION IOI CORPORATION • Is a leading global integrated and sustainable

BERHAD palm oil player
• Its plantation business covers Malaysia and
Indonesia
FIRM LIST OF PROPERTY, PLANT AND EQUIPMENT
MUDA HOLDINGS BERHAD 1. Freehold land
2. Long leasehold land
3. Buildings
4. Furniture, fittings and office equipment
5. Plant and machinery, tools and equipment
6. Motor vehicles
WCE HOLDINGS BERHAD 1. Freehold Land
2. Leasehold Land
3. Buildings
4. Furniture, Fixtures and Fittings
5. Renovation
6. Office Equipment
IOI CORPORATION BERHAD 1. Freehold land
2. Leasehold land
3. Buildings and improvements
4. Bearer plants
5. Plant and machinery
6. Construction in progress
Depreciation Method

Straight-
Line method
 Initial and Subsequent Measurement

For the initial measurement all

of this three company is
measure their PPE at cost less COST REVALUTION
accumulated depreciation and MODEL MODEL
accumulated impairment loss,
if any.
Any difference in using the subsequent measurement model between the three sector ?

YES
IOI CORPORATION BERHAD (plantation) & WCE HOLDINGS BERHAD (construction)

same subsequent measurement COST MODEL

MUDA HOLDINGS BERHAD (production) REVALUATION MODEL

Impairment Loss
• No impairment loss reported for Muda Holdings Berhad
WCE HOLDINGS BERHAD IOI CORPORATION BERHAD

RM 15.8 million
RM 193,000 VS

IOI CORPORATION BERHAD (Plantation sector) HIGHER amount of impairment

loss compared to WCE HOLDINGS BERHAD (Construction sector)