ASSETS HELD FOR SALE

6 Months Ended

Dec. 31, 2019

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

ASSETS HELD FOR SALE

Penang Property

During the fourth quarter of the fiscal year 2015, the operations 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 anintention 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 is 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. Management entered into a Sales and Purchase Agreement with a potential buyer in the fourth quarter of fiscal year 2019. During the second quarter of the fiscal year 2020, the Company had 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 the fiscal year 2020.The sale price was RM5,600, or $1,340. In connection with the sale of the property located in Malaysia, the Company also incurred the direct expenses of RM330, or $79 which including professional fees, commissions, other selling related expenses and  consent fee from 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 RM4,901 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 December 31, 2019 and June 30, 2019.

					Dec. 31, 2019 (Unaudited)			June 30, 2019
	Reclassification Date /	Investment Amount			Investment Amount			Investment Amount
	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.