Please help me answer this:

In addition, Sarah passedHarleea file containing the annual reports and documentsrelated to Morrison Bhd. The management of CB intended to buy the shares issued by Morrison Bhd at RM500,000 next year. Sarah assigned Harlee to assess the performance of Morrison Bhd and advise the management as needed.

Flipping through the annual reports,Harlee noticed that the audited financial statements of Morrison Bhd showed an increasing amount of profits over the past three years. Yet,in the attorney letter dated 10 January 2018,it wasreportedthat Morrison Bhd wasembroiled in alitigation casewith its supplierssinceend of2017as a result of infringement in contracts.The attorneys believed that the chances for the company to lossthecase was extremely highand it wasestimated that MorrisonBhdwouldpaida loss of lawsuit of RM1.6million inearly2019. This information was notpresented and disclosedin the annual reportsof Morrison Bhd for the year 2017 and 2018.

Harlee had recently heard that theConceptual Frameworkhad changed the definition of a liability and felt that there was no future liability arising on the litigation case. Harlee, however, was uncertain about her decision and required further advice.

Question: You are required to advice Harlee about the company possible investment in Morrison Bhd (CTPS question, refer rubric for marking):

(i)Identify the problem(s)faced by Harlee with regards to Morrison Bhd (Problem identification).

(ii)Analyse the problem(s) experienced by Harlee by referring to the Conceptual Framework for Financial Reporting(Problem analysis).

(iii)Briefly explain howHarlee should address the aboveissue (Generation of solution, evaluation and decision making).

This is the rubric for marking:

Appendix 1 Critical Thinking and Problem Solving (CTPS) Rubric Pusat Pengalian Perakaunan Semester Session Tunku Puteri Intan Safinaz TUNKY PURERAINTAN SAPNAZ SCHOOL OF ACCOUNTANCY Course Name ( Course Code) : Lecture group Universiti Utara Malaysia Student Name (Matric No) Task description CONTENT (Critical Thinking and Problem Solving) Traits Poo Good Excellent Scare Problem Identification Unable to identify (10 12) Able to identify issue/problem Independently able to Independently able to issue/problem even with with minimum assistance. identify issue/problem with identify issue/problem very assistance. clarity. clearly and accurately. 2 Problem Analysis Unable to analyze Able to analyze issue/ Able to analyze issue/ problem Able to analyze issue/problem issue/problem and fail to problem but does not clearly and clearly describe some of and clearly describe all the define the contributing factors. describe the contributing the contributing factors. contributing factors. x 2 factors 3 Conceptualization and Unable to generate any new Able to generate new ideas Able to generate new ideas Able to generate new ideas Generation of solutions ideas and/or offer alternative and/or provide alternative and/or provide alternative and/or provide alternative x 2 solutions solutions with some solutions without assistance. solutions with accuracy, assistance. clarity and detailed Evaluation Unable to evaluate Able to evaluate several Able to evaluate several Able to evaluate several appropriate alternative alternative solutions with alternative solutions with alternative solutions clearly solutions some reasonable assistance. minimum assistance and accurately without assistance. 5 Decision making Unable to make decision Able to make decision based Able to make good decision Able to make excellent based on identified ideas and on identified ideas and based on identified ideas and decision based on identified solutions even with assistance, solutions with some solutions with minimum ideas and solutions without assistance assistance. assistance. TOTAL SCORE 184