Sample Disclosure – Change In Accounting Policy On Property, Plant and Equipment (21 August 2009)

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

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