Financial Accounting 1

Non-accounting professionals usually wonder why an entity's general purpose financial reporting should be regulated without allowing users to be free from choice of presentations. You are asked to give clarity on this subject to the non- accounting professionals in your workplace. Required: ) Explain FOUR (4) reasons why financial reporting should be regulated in Malaysia (8 marks) (ii) Highlight THREE (3) objectives of the International Accounting Standard Boards (IASB). (3 marks) (b) According to MFRS 16 Leases, the lessor must classify all lease contracts into finance lease or operating lease. Required: State THREE (3) conditions under which the lessor will consider a lease as a finance lease. (6 marks)