3 (25 Marks) a) The IASB's Conceptual Framework for Financial Reporting lays out the objectives and fundamentals that will guide the development of financial accounting and reporting standards. The purpose of financial reporting is defined by its objectives. The characteristics or qualities of information discussed in the Conceptual Framework are the concepts that make information useful and the qualities to be sought when accounting choices are made. Required i. Explain the benefits that the firms derived from the Conceptual Framework in preparing their financial statements. [5 marks] ii. Explain the most essential quality for accounting information as stated in the Conceptual Framework? Justify your answer with an example. [5 marks] CONFIDENTIAL Page 3 of 5 202109/SEM103/A b) Presented below are selected transactions for Solidago Berhad for 2021. Jan 1 Received RM3,000 scrap value on retirement of machinery that was purchased on January 1, 2010. The machine cost RM90,000 on that date, and had a useful life of 10 years with no residual value. April 30 Sold a machine for RM31,000 that was purchased on January 1, 2018. The machine cost RM90,000, and had a useful life of 5 years with no residual value. Dec 31 Required: Discarded a business automobile that was purchased on April 1, 2017. The car cost RM42,000 and was depreciated on a 5-year useful life with a residual value of RM2,000. Journalize all entries required as a result of the above transactions. Solidago Berhad uses the straight-line method of depreciation and has recorded depreciation through December 31, 2020. [15 marks]