As the chief accountant of DESA BHD, you need to provide the explanation of how you are going to account for these events and the required disclosure in the financial statement in accordance to FRS 137. DESA BHD is listed company engaged in providing brokerage services in Kuala Lumpur and Bangkok. The External Auditor has raised several issues that need to be addressed by DESA BHD

Q: Due to severe losses and low volumes on stock markets, the board of directors has decided to close down the office at Bangkok Stock Exchange and to make redundant all the employees of the office. The plan has however, not been announce by the year end and the he estimated cost of redundancy is RM200,000