Question $1$

Marquess Berhad has a year end of $31$ December $2022,$ 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 $31$ December $2022$ has been estimated at

RM$164,000.$

Soon after the year end, a warehouse assistant discovered that goods costing RM$10,000$ had

been received on $29$ December $2022$ but accidentally omitted from the year$-$end inventory

count.

On $1$ July $2021,$ Maju Berhad began renting new computer equipment. The rental requires

four quarterly payments of RM$8,000,$ 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 $31$ December

Details of the depreciation charges are as follows:

Freehold buildings are depreciated on a straight$-$line basis at $3\%pa.$

Plant and equipment is depreciated on a reducing balance basis at a rate of $15\%$ pa$.$

On $1$ July $2021,$ Marquess Berhad issued $240,0006\%$ RM$1$ 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 $31$ December $2021.$

Research and development expenditure of RM$480,000$ was incurred and capitalised during

the current year. RM$160,000$ of this expenditure was spent on research activities and

RM$100,000$ was incurred prior to Marquess Berhad gaining the necessary licence to market

their new product.

During the year to $31$ December $2022,$ Marquess Berhad changed its method of inventory

valuation from weighted average to FIFO. Inventory at $31$ December $2022$ was correctly

valued on the FIFO basis. Closing inventory at $31$ December $2021$ was reported as

RM$148,000$ valued at weighted average; however, if it had been valued using FIFO it would

have been RM$156,000.$

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 $31$ December $2022.$

$($b$)$ Prepare the Statement of Changes in Equity for the year ended $31$ December $2022.$ A

totals column is not required. $($As per IAS $1/$MFRS $101$ Presentation of Financial

Statements$)$

$($c$)$ Prepare the Statement of Financial Position as at $31$ December $2022.($As per IAS

$1/$MFRS $101$ Presentation of Financial Statements$)$

Question $2$

Imperium Berhad is 'knowledge$-$led' 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 $31$ December $2022.$

$($a$)$ On $1$ January $2022$ the company acquired a cable television franchise for RM$20$ 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 $10$ years.

A $10-$year franchise covering a similar number of viewers in Selangor was sold by a

competitor to a third party on $31$ December $2022$ for RM$30$ 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$30$ 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$2$

million incurred on the project had been recognised as an expense in profit or loss as

research costs. On $1$ July $2022$ the company was able to demonstrate that the process met