Question 1 To be useful financial information must be relevant and present business's economic activities. This requires this, belief that help us diferente right from wrong in the application of underlying accounting concepts or principles These underlying accounting concepts of principles are known as grally accepted accoring principles GAAP) GAAP in Malaysia as well as in many other countries is based on international Financial Reporting Standards (IFRS) FRS are issued by the International Accounting Standards Board (ASe). Malaysian Financial Reporting Standards (MFRSs) are issued by the MASB in respect of its application in Malaysia RSS contain materials in which the IFRS Foundation holds copyright and which been reproduced in these Standards with the permission of the IFRS Foundation Required: You are now auditor appointed by Wa Berhad, a public isted company in Malaysia During the rim audit work done for financial year 2019. you noticed there are few issues in Wac's financial reporting For each issue detected in Column B. suggest the relevant MFRS for CFO's reference 8 marks No Column A Column Examples Wac Berhad acquired 55% of ordinary MERS shares in Tac Berhad on 1 July 2010 Again Example Business on a bargain purchase negative goodwill) Combination arises due to the acquisition Was Berhad plans to discontinue one of its al operations in United Kingdom in Year 2020. IT Co Sdn Bhd is subsidiary of Wac Berhad IT Co provides hardware, software and IT services to small business customers. When b) should IT Co recognise revenue from the combined goods and services contract? Wac Berhad issued redeemable preference shares of RM1million in Year 2019. Its (c) accountant proposed to record the issuance of preference shares as current abilities In an anert to improve reported prolil, the directors of Wao Berhad want to change the valuation method of inventory from first in first out FIFO) to last in first out (LIFO) method (d) Dividend received from share investment is classified as operating cash rows