Change In Accounting Policy
On 1 January 2009, the Company changed its accounting policy on the measurement of its freehold land and buildings form cost model to revaluation model. Pursuant to FRS 116: Property, Plant and Equipment, the revaluation has not been dealt with as a prior year adjustment in accordance with FRS 108: Accounting Policies, Change In Accounting Estimates and Errors, but instead treated as revaluation made during the year.
The effect of the change is as follows:-
| Balance sheet as at 1 January 2009 |
Increase/(decrease) |
|
RM |
|
| Property, plant and equipment |
4,750,000 |
| Asset revaluation reserve |
4,750,000 |
| Deferred tax liability |
250,000 |
[...] Posted by learnaccounting on August 21, 2009 If you need sample disclosure of change in accounting policy on change in measurement basis of property, plant and equipment please refer to:Sample Disclosure of Change In Accounting Policy From Cost Model to Revaluation Model of Land and Bu… [...]