Question 1 a) In 2018, the International Accounting Standard Board (IASB) published the Conceptual Framework for Financial Reporting. This fully revised document replaced the section of the 2010 version of the Conceptual Framework that had been carried forward from the 1989 version, as well as addressed some changes introduced in 2010. Required Explain any two changes that have been included in the revised 2018 Conceptual Framework for Financial Reporting (5 marks) b) OK furniture ltd is the furniture company in Zambia which has a number of outlets throughout the country. Due to the COVID 19 OK furniture ltd has experienced declining sale levels, as a result the board decided to discontinued the operations in Kasama, Chipata and Choma. The company suffered losses in 2021 due to the high costs incurred in this excise. Required In line with on IFRS5 (International Financial Reporting Standard 5, Non-current Assets Held for Sale and Discontinued Operations.) Discuss how OK furniture will present the Loss from discontinued operations in the income statement for 2021, (5 marks) c)Presented below are selected ledger accounts of OK furniture PLC as of December 31, 2021. K Cash Administrative expenses Selling expenses Net sales 150,000 300,000 240,000 1,620,000 Cost of goods sold 780,000 Cash dividends declared (2021) 60,000 Cash dividends paid (2021) 45,000 Discontinued operations (loss before income tax) 120,000 Retained earnings, December 31, 2020 270,000 Effective tax rate 30% Required Prepare the income statement suitable for presentation to shareholders in line with IFRS guidelines. Assume 20,000 ordinary shares were outstanding during 2021.(10 marks) Page 2 of 5 d) Your Uncle is an accountant for Mobile City. As he is going through the financial statements he discovers a misstatement that overstated net income in the prior year's financial statements. The misleading financial statements were issued to banks and other creditors less than a month ago. After much thought about the consequences of telling the general Manger Mr. Banda, about this misstatement, he decide to keep quite and continue with his normal accounting duties your uncle reasons that what they don't know won't hurt them. What do you think about your uncles' actions? Explain any financial reporting guidelines that are available to remedy this situation? (5 marks) 5