4. The definition of a liability as stipulated by The Conceptual Framework of 2018 that it is a present obligation of the entity to transfer an economic resource as a result of past events. An obligation is a duty or responsibility that the entity has no practical ability to avoid. MobileR Ltd manufactures mobile radios with a 31 May 2023 financial year end. The mobile radios can be used for small exhibition events with a radius of 1020km with no interference from other devices. Wild Africa Ltd, on 5th May 2023, pre-ordered and paid for 500 mobile radios from MobileR Ltd and paid R100 per unit, with delivery scheduled for 1 June 2023 REQUIRED: a) Please discuss the accounting treatment of the above transaction in accordance with the Conceptual Framework of 2018? b) Provide the journal entry for the transaction in the accounting records of MobileR Ltd for the year ended 31 May 2023. c) Provide the journal entry for the transaction in the accounting records of MobileR Ltd for the financial year ended 31 May 2024. 5. The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition as per paragraph 10 of IAS 2 . REQUIRED: Please discuss the costs that are excluded from the cost of inventories and instead recognised as expenses in the period in which they are incurred, please also provide the IAS 2 paragraph? (4) 6. CT Ltd is a luxury cosmetics manufacturing company. One of its product lines includes lipsticks, moisturisers and make-up kits. CT Ltd sells hundreds of different brands of these products. Each product is quite similar, purchased at similar prices and has a short lifecycle before a new similar product is introduced. The inventory system of CT Ltd is not yet fully functional and the sales manager of the cosmetic division is unsure of the cost of each product, but is confident of the selling price and has reliably informed you, the new accountant, that CT Ltd on average maintain a gross margin of 70% on each line. 9 FAC2601/Ass01/2/2023 ASSESSMENT 01 (Second semester) (continued) REQUIRED: In accordance with IAS 2, Inventories, explain how the cosmetic product line of CT Ltd should be measured? (1)