10.1.3 ACCOUNTING 2: ASSIGNMENT 1. O9Pprio, 11001 QUESTION ONE Quick Fix Ltd is a manufacturing company engaged in the production of adhesives. The company has not performed well over the past three financial years In order to improve on the poor past profits, the board approwod a R1 000 000 adverising promotion during the year ended 31 December 2018 in order to generate increased sales in the future. The advertising promotion took place (and was paid for) during December 2018 The accountant insists on recognizing the R1 000 000 payment as an asset at 31 December 2018. His reasoning is that future sales will increase as the number of customers grows due to the advertisimg campaign (25) Required: 1.1 Discuss whether you agree with the accountant, making reference to the framework (20) Provide an altemate treatment if you disagree. 1.2 One of the most important characteristics that a set of financial statements should have is reliability Explain, in terms of the framework, how to ensure that a set of financial statements is reiable