BlueWhitePanda (BWP) Bhd is a food delivery service company. BWP provides an easy smartphone app or the website and riders to bring ordered food to the customers. The companys motto Satisfy your craving, just click and we serve to your doorstep has received overwhelming responses. The operation of food delivery service is substantially relied on efficient riders and a good apps system. Due to the high turnover of riders in the same industry, BWP must ensure that their riders are satisfied with the companys system and wages. Thus, BWP provides intensive training and pay their riders higher compared to its competitors. The management of BWP has placed priority on their riders and regards them as the companys valuable asset. Passionate for growth, as a young company, BWP is in its effort to attract more investors to expand the business. For that, BWP presented in its financial statements of 2019 the forecast of food ordered for 2020. Food order is defined as the total food sales using order apps and delivery services by BWP. However, BWP will only receive 25 cents on each RM1 of food ordered. Early this year, BWP purchased a piece of land at a cost of RM200,000. Within six months, BWP made the land ready for sale by spending RM50,000 to improve the land condition. At the end of the accounting year, the land was worth RM350,000. BWP recognized revenue of RM150,000, less the expense of RM50,000, for a net income of RM100,000. However, the land has not been sold. The income of BWP for 2018 decreased by 25% and BWP had so many worries as it was considered as low. Therefore, BWP switched its depreciation method from accelerated depreciation method to a straight-line basis for 2019 as a way to report lower expenses which resulted in higher income for 2019. In 2020, the company switched back to the accelerated depreciation method. BWP Bhd year end is on 31 December. (a) As mentioned in the text, the management of BWP Bhd has placed the priority to their riders and regards them as the companys valuable asset. Based on the revised Conceptual Framework for Financial Reporting, does the rider fits with the definition of an asset? Explain. (b) Referring to the forecast of food ordered for 2020 made by the BWP in its financial statement of 2019, what are the characteristics of qualitative information that have been violated? Explain.

(c) BWP accounting year-end is on 31 December every year. However, based on the going concern assumption, the company will have a long life, long enough to fulfill its objectives and commitments. Thus, to measure the results of a companys activity accurately, we would need to wait until it liquidates. Explain the reason why companies must report their accounting information periodically?

(d) State whether you agree or disagree with the decisions made by BWP Bhd in regards to the: (i) Revenue recognition related to the land (ii) Depreciation method Support your answers with any possible reference of generally accepted principles, assumptions, or qualitative information characteristics applicable in the circumstances