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BBFA 2024 ADVANCED FINANCIAL ACCOUNTING Answer ALL THREE (3) compulsory questions. Question 1 My Properties Beilad (MYP) is a company, listed on Main Maiket Listing in Bursa Malaysia. Its principal activity is property development and its financial year ends on 30 June annually. MYP adopts International Financial Reporting Standards (IFRS) or Malaysia Financial Reporting Standards (MFRS). During the financial year ended 30 June 2021, three (3) issues arised as below: Issue (1) In January 2021, the Managing Director of MYP had started to utilize a three storey shoplot in Kajang, Selangor as sales office since they are currently developing properties nearby. The three storey shoplot was treated as an investment property and measured in accordance with IAS 40/MFRS 140 Investment Property before the change of use takes place. It is the Group's policy to measure investment property at cost model. Issue (2) The head office building was purchased 20 years ago with an estimated useful life of 30 years. CFO has proposed a revision of the estimated useful life to 50 years since the Board of Directors had indicated their interest in continuing its use as head office building and proposed to refurbish the building next year. Issue (3) The Senior Finance Manager of MYP has recently discovered mathematical mistakes on the revenue computation based on percentage of completion for one of its ongoing property development projects. The mistakes occurred when the accountant computed the revenue for the financial year ended 31 March 2021 and this error has been carried forward since then. Incorrect revenue has been reported in quarterly reports for the year ended 31 March 2021 and published on Bursa Malaysia. Required: Based on the issues (1) to (3) above, explain the accounting treatments that are required to be made in the financial statements for the year ended 30 June 2021 in accordance with IAS 8/MFRS 108 Changes in Accounting Policies, Accounting Estimates and Errors. [Total: 15 marks)

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