ASSETS HELD FOR SALE

12 Months Ended

Jun. 30, 2020

Assets Held-for-sale, Not Part of Disposal Group [Abstract]

ASSETS HELD FOR SALE

Penang Property

During the fourth quarter of fiscal year 2015, the operation in Malaysia planned to sell its factory building in Penang, Malaysia. In accordance with ASC Topic 360, during the fiscal year 2015, the property was reclassified from investment property, which had a net book value of RM 371, or approximately $98 (based on the exchange rate as of June 30, 2015 as published by the Monetary Authority of Singapore), to assets held for sale, since there was an intention to sell the factory building. In May 2015, Trio-Tech Malaysia was approached by a potential buyer to purchase the factory building. On September 14, 2015, the application to sell the property was rejected by Penang Development Corporation (PDC). The rejection was because the business activity of the purchaser was not suitable for the industry that was being promoted on said property. PDC made an offer to purchase the property, which was not at the expected value and the offer expired on March 28, 2016. No further conversations with PDC have occurred since March 2016. During the fourth quarter of fiscal year 2019, management entered into a Sales and Purchase Agreement with a potential buyer. During the second quarter of fiscal year 2020, the Company obtained approval of the sale from PDC and the local government. The sale of the property was completed at the end of the second quarter of fiscal year 2020. The sale price was RM 5,600, or $1,340. In connection with the sale of the property located in Malaysia, the Company also incurred the direct expenses of RM 330, or $79, which included professional fees, commissions, other selling related expenses and consent fees from the local government. These expenses were directly offset against the proceeds from selling the property, as these expenses were deemed as a cost of sales. The Company recognized a net gain of RM 4,901, or $1,172, in the second quarter of fiscal year 2020 excluding capital gain tax. The tax on the capital gain in Malaysia from the sale of the property was approximately $94 computed after the taxable gain was determined.

The following table presents the Company’s assets held for sale in Malaysia as of June 30, 2020 and June 30, 2019.

					June 30,  2020			June 30, 2019
	Reclassification	Investment Amount			Investment Amount			Investment Amount
	Date/ Sale Date	(RM)			(U.S. Dollars)			(U.S. Dollars)
Penang Property Reclassification from investment property	June 30, 2015		681			181	*		181	*
Currency translation			-			-			(15	)
Derecognition	Dec 19,2019		(681	)		(181	)		-
			-			-			166
Accumulated depreciation on rental property	June 30, 2015		(310	)		(83	) *		(83	)*
Currency translation			-			-			6
Derecognition	Dec 19,2019		310			(83	)		-
			-			-			(77	)
Net investment in rental property - Malaysia			-			-			89

*The exchange rate is based on the exchange rate as of June 30, 2015 published by the Monetary Authority of Singapore.