CASE STUDY ACCOUNTING THEORY Perdana Horses Sdn Bhd (PHSB), which has been operating since 2007, is a well-known equine sports operator on Langkawi Island. Ekuin Perdana is the epicenter of equities operations and sports for PHSB. Among the services offered at Ekuin Perdana are horse rental and horse riding training classes. The type of horse breed used for equine activity and sports programs is Carillos imported from Argentina. The four horse rental packages offered are Casual Packages, Beach Packages, Wilderness Packages and Travel Packages. Charges charged for each package are based on rental hours. Horse riding training classes are offered in the form of 10 session packages. Charges range from RM250 to RM650 for ten sessions depending on the level of start, middle, or advanced. In addition, PHSB also offers breeding services, stable rental services and veterinary services operated at Warisan Perdana. The charge for breeding is RM1,500 for a horse while the charge for the breeding process starts from RM2,000 depending on the type of horse breed. The breed of horses used for breeding programs are Pony Cross and Arabian. Horses used for breeding services are also involved in horse shows and competitions. The charge for stable rental depends on the type of package chosen i.e. daily package or monthly package. The charge for the daily package is RM150 per day which includes charges for the stable, paddock and track. The monthly rental fee for the Full Package (stable, food, care, paddock and track) is RM2,500 per month while the Basic Package is RM750 per month. Charges for veterinary services are charged based on the type of services provided. The interest in PHSB is held by Berjaya Langkawi Beach Resort Sdn Bhd (BLBR) which has 60% interest and Island Horses Sdn Bhd (IHSB) which owns 40% interest. BLBR is a wholly-owned subsidiary of Berjaya Corporation Berhad. The agreement between BLBR and ISSB stipulates that all decisions regarding PHSB's financial policies and operating policies require the agreement of BLBR and IHSB.

Explain by justifying and referring to the relevant standards (as appropriate):

a) The reporting framework to be used by Perdana Horses Sdn Bhd for financial reporting purposes, b) How should the proceeds of the activities of Perdana Horses Sdn Bhd be accounted for, and c) How should the horse be owned by Perdana Horses Sdn Bhd?