Question 1 The transition to the International Financial Reporting Standards (IFRS) has gathered pace in the last decade, and financial reporting based on IFRS is now the norm for publicly accountable reporting entities around the world. The adoption of IFRS has brought many benefits, such as increased transparency, comparability, and better decision-making. However, IFRS implementation is not without challenges for reporting entities and accountants.

Discuss six (6) of the most significant challenges faced by reporting entities and accountants in the adoption and implementation of IFRS. Your answer must be supported by good research articles.

Question 2 (a) PruInvest Pte Ltd (PIL) provides financial data analysis service and sell display monitors. On 1 June 20X4 PIL enters sales contract with two companies. Both companies chose the same display monitor and the same monthly service plan. The standalone selling price of the monitor is $600 (cost of the monitor is $400) and the standalone selling price of the service plan is $200 per month. Company A enters a 12- month service contract for $200 per month and pays $300 for the monitor. Company B purchases the monitor for $550 and enters a cancellable contract to receive the services for $200 per month. PIL received cash payment for the monitors and the first month service fee from both companies on the same day. The monitors were delivered on 3 June and the service was made available on the same day.

Required: Apply FRS 115 Revenue from Contracts with Customers to account for the treatment of this transaction. Workings and explanations must be clearly shown. Provide journal entries for the month of June. (b) To access the service, PIL needed to turn on the activation for both companies. Explain the accounting treatment if an upfront, non-refundable activation fee of $50 was charged to both companies