A1. Consider the following two independent cases: (a) Wire Limited applied straight-line method to depreciate its non-current assets in the past years. With an aim to reduce loss for the current year, the financial controller decided to change the company's depreciation policy to the use of reducing balance method. (b) Pate Limited paid $360,000 on 1 December 2021 in advance to its landlord for rent of the period from 1 December 2021 to 28 February 2022. The bookkeeper recorded the full amount of $360,000 payment as rental expenses in the company's financial statements for the year ended 31 December 2021. Required: Identify and explain the relevant accounting concept applying to each of the above cases. Determine whether the accounting treatment is appropriate and if not, suggest any adjustments that may be required. (Total 14 marks)