QUESTION 2 Excel acquired a piece of land for RM200M on 1 January x5. The land was classified as investment property and measured using the cost model. On 1 January x9, Excel changed its accounting policy to fair value measurement for the land. It was able to derive the fair values of the land only from 31 December x8 was RM290m. The fair value of the land on 31 December x9 was RM313m. Retained earnings of Excel was RM250m on 1 January x9. Required: Discuss the effects of the change in accounting policy on the financial statements on 31 December x9

QUESTION 2 Excel acquired a piece of land for RM200M on 1 January x5. The land was classified as investment property and measured using the cost model. On 1 January x9, Excel changed its accounting policy to fair value measurement for the land. It was able to derive the fair values of the land only from 31 December x8 was RM290m. The fair value of the land on 31 December x9 was RM313m. Retained earnings of Excel was RM250m on 1 January x9. Required: Discuss the effects of the change in accounting policy on the financial statements on 31 December x9

Name: QUESTION 2Excel acquired a piece of land for RM200m on 1 Januaryx5. T
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Description: QUESTION 2Excel acquired a piece of land for RM200m on 1 Januaryx5. The land was classified as investment property andmeasured using the cost model.On 1 January x9, Excel changed its accounting policy tofair value measurement for the land. It was ab

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...

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