Consider the following situations. In each case, do we have an asset or liability within the definitions given by the Framework? Give reasons for your answer.

(a) A screwdriver bought during the year.

(b) A machine hired / leased by the business.

(c) The good reputation of the business with its customers.

(d) Pelangi Sdn. Bhd. has purchased a patent for RM90,000. The patent gives the

company sole use of a particular manufacturing process which will save

RM21,000 a year for the next five years.

(e) Bernas Sdn. Bhd. paid Moto Trading RM60,000 to set up a car repair shop, on

condition that priority treatment is given to cars from the companys fleet.

(f) Deals from Pesona Sdn. Bhd. provides a warranty with every car sold.