The following situations are independent of each other and
related to the activities and events of Global Berhad in the year
2018. The financial year end for the company is 31 December. (i) In
the past, the company expensed borrowing costs on construction of
its factory. The company has changed its policy this year and now
capitalises as it is incurred. In 2017 accounts, borrowing costs
expensed was RM2,500,000 and this year’s borrowing costs incurred
was RM3,800,000. The factory is...