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Question 1 Marquess Berhad has a year end of 3 1 December 2 0 2 2 , and its accounting assistant has obtained the following
Question
Marquess Berhad has a year end of December and its accounting assistant has
obtained the following list of balances from the nominal ledger as at that date:
The following additional information is available:
The income tax liability for the year ended December has been estimated at
RM
Soon after the year end, a warehouse assistant discovered that goods costing RM had
been received on December but accidentally omitted from the yearend inventory
count.
On July Maju Berhad began renting new computer equipment. The rental requires
four quarterly payments of RM payable at the start of each quarter. The entries for the
rental have not yet been recorded in the trial balance.
No adjustment has been made for the depreciation charges for the year ended December
Details of the depreciation charges are as follows:
Freehold buildings are depreciated on a straightline basis at
Plant and equipment is depreciated on a reducing balance basis at a rate of pa
On July Marquess Berhad issued RM irredeemable preference shares
at par. The payment of the dividend is at the discretion of Marquess Berhad. The appropriate
dividend in respect of these shares was paid on December
Research and development expenditure of RM was incurred and capitalised during
the current year. RM of this expenditure was spent on research activities and
RM was incurred prior to Marquess Berhad gaining the necessary licence to market
their new product.
During the year to December Marquess Berhad changed its method of inventory
valuation from weighted average to FIFO. Inventory at December was correctly
valued on the FIFO basis. Closing inventory at December was reported as
RM valued at weighted average; however, if it had been valued using FIFO it would
have been RM
Required
For Marquess Berhad:
a Beginning with the item of profit before tax, prepare the revised Statement of Profit or
Loss for the year ended December
b Prepare the Statement of Changes in Equity for the year ended December A
totals column is not required. As per IAS MFRS Presentation of Financial
Statements
c Prepare the Statement of Financial Position as at December As per IAS
MFRS Presentation of Financial Statements
Question
Imperium Berhad is 'knowledgeled' and its management has initiated a strategy of investment
in areas such as brands, advertising, media, technology, and employee training. The business
has few items of property, plant and equipment and the management are concerned that last
year's statement of financial position did not reflect the value of these intangible assets. The
following events have occurred during the year ended December
a On January the company acquired a cable television franchise for RM million.
The franchise allows Imperium Berhad the exclusive right to provide cable television to
two million viewers in the Northern region of Malaysia for the next years.
A year franchise covering a similar number of viewers in Selangor was sold by a
competitor to a third party on December for RM million. A franchise
consultant has provided the management with an independent report that supports an
equivalent market value for the Northern region of Malaysia franchise. The company has
measured the franchise rights in its statement of financial position at the valuation of
RM million.
b The company is developing software for use in streaming programmes via smart phone
hardware. It is unique software, as it allows users to interact as well as watch those
programmes provided by Imperium's broadcasting network. In previous years, RM
million incurred on the project had been recognised as an expense in profit or loss as
research costs. On July the company was able to demonstrate that the process met
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