Question
1. During the year 2021, one of R &D company employees was injured while working. The employee took legal action and sought damages of RM200,000.
1. During the year 2021, one of R &D company employees was injured while working. The employee took legal action and sought damages of RM200,000. R&D company has taken legal advice and is confident that the entity will be held liable but the amount payable is questionable. (5 marks)
2. Discuss the accounting treatment of the above situations in accordance to MFRS137 Provisions, Contingent Liabilities and Contingent Assets and prepare the journal entry for the above situation
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1 By MFRS 137 the RD company should recognize the provision for the employees legal action as a liab...
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
