Question 1: a. Briefly explain the minimum components of a condensed interim financial report (5 Marks) b. Explain the extent to which explanatory notes should be disclosed (10 Marks) c. Discuss how should an entity measure materiality Question 2 (5 Marks) An electronic manufacturing company faces RM 600 million losses in the first quarter. However, the entity expects productions to increase by 60% in the second quarter and sales to start doubling from then on. The entity wishes to spread the loss over the four quarters, based on each quarters' share of forecasted annual revenue. This is attempt to show favorable results in the first quarters. Required Discuss if the actions of the entity are allowable. Question 3 [5 marks] A Car manufacturing company, with a December year end, report quarterly. During 2020, the research and development department embarked a new electric car development project. The following development costs were incurred in 2020: Quarter 1 RM Million 150 Quarter 2 200 Quarter 3 180 Quarter 4 220 The development cost incurred in quarter I was expensed as it did not meet the criteria for capitalization. However, on 1 April the technical and commercial feasibility was established by the team of experts and thus met the criteria for capitalization as per MFRS 138 Intangible assets. Required: Explain the accounting treatment for development cost in quarter 1 as the criteria for capitalization has been met on I April. [5 Marks]