Menglamun Bhd is one of ARB’s subsidiary companies. Menglamun Bhd is a manufacturing company, producing some kind of metal for use in other industries. Due to the overwhelming demand for its metal products, Menglamun Bhd had to find a new location to expand its production and increase the number of metal products. In Jan 2023, Menglamun Bhd started operations in two different locations in Country X. Factory 1 is located in the northern region of the country and Factory 2 operates in the southern region of the country.

Unfortunately, in August 2023, Menglamun Bhd, had to shut down operations at the Factory 2 by government order after it was discovered that the land where the operations were being conducted was a potential source of crude oil. The government of Country X has promised to pay the compensation to Menglamun Bhd, and the payment will only be made after the government has carried out a detailed assessment of land's value and the loss borne by Menglamun Bhd.  It is probable that the payment will be made at the end of the year 2023 or early 2024.

Menglamun Bhd also faces another problem. In September 2023, a few government officers of Country X visited the operation site of Factory 1. However, while carrying out their duties to do the safety inspection, an unexpected incident happened and they had minor injuries. They have taken legal action against Menglamun Bhd by claiming that the operation site is not safe and Menglamun Bhd failed to comply with the rules for keeping the safety of their workers, thus Menglamun Bhd should be responsible for their injuries. They claim the compensation for their injuries totaled RM700,000. Even though the outcome is quite uncertain, however, based on the professional advice, the chance for Menglamun Bhd to win the case is remote.

1. Based on the above information, identify the TWO (2) issues/problems that have been addressed by Menglamun Bhd (Problem identification).

2. Analyze the TWO (2) issues/problems by referring to the MFRS 137 Provisions, Contingent Liabilities, and Contingent Assets (Problem analysis).