1. QUESTION 1 (B)

MC 1_CF A201_STUDENT.DOCX W A. The International Accounting Standards Board (TASB) finished its revision of the Conceptual Framewor REQUIRED: Based on the revised Conceptual Framework for Financial Reporting, define the following terms: (1) Relevance Faithful representation Asset [iv) Liability B. Previlo Bhd is a renowned furniture manufacturer in Malaysia. It has a year end of 30 September 2019. The directors require advice about the following situations. A customer placed an order for "Furniture X10' that amounted to RM20,000 on 10 September 2019, The product was delivered to the customer on 2 October 2019 and the transaction was recognised in the current accounting period. Dr Accounts receivable 20,000 Cr Sales revenue 20,000 The company sold a piece of land in March 2019 to Shuang Bhd at RM1.2 million. The land was initially bought at RM900,000, The director requested the company to recognise any gain or loss from the sale of the land to his personal account and the following journal entry was prepared, Dr Bank 1,200,000 Cr Amount owed to director 300,000 Land 900,000 (iii) An annual insurance of RM120,000 was paid by the company on 1 September 2019. As at the financial year end, the accountant prepared only the following journal entry, Or Prepaid insurance 120,000 Cr Cash 120,000 REQUIRED: Explain if the above scenarios violate the qualitative characteristics, assumptions or principles under the Conceptual Framework. Your answer should be supported with (any) correct journal entry as at 30 September 2019. QUESTION 2 A. List TWO (2) accounting assumption that underlie the Conceptual Framework and briefly explain the assumptions. B. Briefly explain each of these concept. 1. Predictive value 2. Conformity value PAGE 2 OF 3 38 FILE 4 SAVE SAVE SAVE PRINT SHARE OPEN AS PDF IN O