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Roses Bhd. is a Company incorporated in Malaysia. The Company manufactures and wholesaler of modern...

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Accounting

imageimage Roses Bhd. is a Company incorporated in Malaysia. The Company manufactures and wholesaler of modern furniture for home and office use. The Company has adopted a manufacturing technology from Japan and is subject to strict quality controls. Below is the trial balance of the Company for the year ended 31 December 2022: dditional information: In 2018, the Company started growing its own timber to counter rising timber prices. On 1 January 2018, the Company bought 400 hectares of uncultivated land to convert it into a timber tree plantation. The maturity period of the timber trees is ten years. The costs associated with planting the timber trees are as follows: The Company has accounted for costs incurred in 2019 through 2021. However, no record has been made for the transaction costs incurred in 2022. The Company applies MFRS141 Agriculture, to record the costs related to timber tree plantation. REQUIRED: Explain the appropriate accounting treatment for costs associated with timber plantations. Your explanation should include the classification of the plantation costs and their measurement at the time of recognition and after initial recognition

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