. DUDUK DIRUMAH-DI... 2:59 PM thecn.com @ 69% vv Showing questions 1 of 5 Time Remaining: 2:30:37 Question 1 Points: 25 Answer the following questions: (a) Information must be useful to the users of financial statements for planning, control and decision-making purposes. Describe the TWO (2) primary qualitative and the FOUR (4) enhancing qualitative characteristics of useful financial statements (16 marks) (b) Chant Berhadis a research company which specializes in developing new materials and manufacturing processes for the future industry. The director of Chant Berhad is not sure of the recognition criteria and accounting treatments regarding the following independent projects costs: 1) The company started a project and incurred expenses amounting to RM280,000 to develop a new flame-proof padding. The expected total revenue once the project is completed is known. The company incurred a cost of RM110,000 for a project involving the investigation of new adhesive recently developed in the aerospace industry If this proves effective, then Chant Berhad may well generate significant income because it will be used in place of existing adhesives. An equipment costing RM40,800 was purchased to improve the manufacturing capacity of the company and generate more revenue for the company (iii) Required: As the company's financial accountant, determine whether MFRS116 Property Plant & Equipment or MFRS138 Intangible Asset are applicable for each of the independent projects above and explain the accounting treatments accordingly. (9 mark [Total: 25 Marko File Edit View Insert Table Format MW 435 HOME COURSES SEARCH @MW 435 . DUDUK DIRUMAH-DI... 2:59 PM thecn.com @ 69% vv Showing questions 1 of 5 Time Remaining: 2:30:37 Question 1 Points: 25 Answer the following questions: (a) Information must be useful to the users of financial statements for planning, control and decision-making purposes. Describe the TWO (2) primary qualitative and the FOUR (4) enhancing qualitative characteristics of useful financial statements (16 marks) (b) Chant Berhadis a research company which specializes in developing new materials and manufacturing processes for the future industry. The director of Chant Berhad is not sure of the recognition criteria and accounting treatments regarding the following independent projects costs: 1) The company started a project and incurred expenses amounting to RM280,000 to develop a new flame-proof padding. The expected total revenue once the project is completed is known. The company incurred a cost of RM110,000 for a project involving the investigation of new adhesive recently developed in the aerospace industry If this proves effective, then Chant Berhad may well generate significant income because it will be used in place of existing adhesives. An equipment costing RM40,800 was purchased to improve the manufacturing capacity of the company and generate more revenue for the company (iii) Required: As the company's financial accountant, determine whether MFRS116 Property Plant & Equipment or MFRS138 Intangible Asset are applicable for each of the independent projects above and explain the accounting treatments accordingly. (9 mark [Total: 25 Marko File Edit View Insert Table Format MW 435 HOME COURSES SEARCH @MW 435
