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  3. 2 in 2018, minyak corp, set up a division within t

2 In 2018, Minyak Corp, set up a division within the company to explore the...

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Accounting

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2 In 2018, Minyak Corp, set up a division within the company to explore the potential use of bio-oil from a locally grown plant. By 2020, the initiatives were shown to be not commercially viable even though support was received from the Biotech Oil Engineering Association and Environmental society. An impairment review on the Bio-oil Division was carried out on 31 December 2018, and documented as follows: RM'000 RM000 1.800 750 Book value of nett assets of Bio-oil Division in financial statement, where nett assets consist of: Goodwill RM450,000 Plant and machinery RM600,000 Building RM750,000 Fair value less costs of disposal of Bio-oil Division's nett assets Value in use: Nett cash flows from operations before tax Additional nett cash flows from bio-oil energy improvement Finance costs Current interest rate 2.145 1,000 800 165 Required: Identify the necessary accounting treatment for the Bio-oil Division by Minyak Corp

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