Question 1:
I choose TRIplc Berhad company.
Question 2:
From the list of the Accounting Standards of Malaysian Accounting Standards Boards (MASB):
i. FRS 102 Inventories
ii. FRS 107 Statement of Cash Flows
iii. FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors
iv. FRS 116 Property, Plant and Equipment
v. FRS 118 Revenue
vi. FRS 123 Borrowing Costs
FRS 116 Property, Plant and Equipment is my chosen one.
Question 3:
Discuss the purpose, scope and content of the standard
FRS (Financial Reporting Standard) 116 talks about property, plant and equipment area. Those factors as assets, details as tangible non-current assets “that are held by an entity for use in the production of goods and services, for rental to others, or for administrative or maintenance purposes; and are expected to be used during more than one reporting period.”1 It is not only about property, plant and equipment but also other terms such as carrying amount; cost; fair value; and recoverable amount.
* Carrying amount: “is the amount an asset is recognized at less accumulated depreciation and accumulated impairment loss.”1
* Cost: “is the cash or cash equivalent paid. It includes the fair value of a non-monetary asset given in exchange for the asset acquired.”1
* Fair value: “is the amount that an asset could be exchanged for at an arm’s length transaction between knowledgeable, willing parties.”1
* Recoverable amount: “is the higher of an asset’s fair value less cost to sell and its value in use.”1
a. Purpose of the standard:
FRS 116 established as a solution for the accounting about the property, plant and equipment. Therefore, when the users look into the financial statements, they could distinguish about an entity’s investment in its property, plant and equipment and the changes in investment. The most important issues in this standard are the recognition of the assets, the determination of their...