Uniqle Bhd acquired brand on 1 January 2018 at RM200,000. It has a useful life of 4 years. The professional valuer has valued the brand on 31 December 2019 at RM90,000. The accounting treatment of the above transaction would be:

Question

Uniqle Bhd acquired brand on 1 January 2018 at RM200,000. It has a useful life of 4 years. The professional valuer has valued the brand on 31 December 2019 at RM90,000. The accounting treatment of the above transaction would be:

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a. The impairment loss of the brand of RM10,000 is written-off to SOPL
b. The impairment loss of the brand of RM60,000 is written-off to SOPL
c. The deficit on revaluation of RM10,000 is written-off to SOPL
d. The deficit on revaluation of RM60,000 is written-off to SOPL

Answer 1

Uniqle Bhd acquired brand on 1 January 2018 at RM200,000. It has a useful life of 4 years. The professional valuer has valued the brand on 31 December 2019 at RM90,000. The accounting treatment of the above transaction would be:

b. The impairment loss of the brand of RM60,000 is written-off to SOPL.