| Accounting |
Obtain a copy of the annual report for the financial year 2020 of Koufu Group Limited (“the company”)
Required:
(i) Briefly introduce the company and its core business activities.
(ii) Identify the classification(s) (e.g., intangible asset) of the company’s two properties located at 18 and 20 Woodlands Terrace during the financial year 2020.
Provide justification for the company’s classification(s) of the properties, in compliance with Singapore Financial Reporting Standards (International).
(iii) Describe the accounting treatments of the two properties referred to in requirement (ii) above. Provide the necessary journal entries that the company would have made for the two properties during the financial year 2020. Show your journal entries in your Appendices.
(iv) Explain how the events disclosed in Note 35 regarding the two properties may impact the financial statements for the financial year 2020.
(v) Assume that you were an existing shareholder of the company since the financial year 2020. Discuss how the non-occurrence of the events disclosed in Note 35 may affect your investment decision