Question 2 (19 Marks) 1. Wonder Ltd rents office space from a landlord at N$ 45 000 per month. It uses this space to run a business selling pharmaceutical products. At 31 October 2020, it pays the rent for November 2020. Required: From Wonder perspective, prove that this payment is an asset as at 30 October 2020. (7 marks) 2. Chapter 2 of the conceptual Framework clarifies what makes financial information useful, that is, information must be both relevant and must faithfully represent the substance of financial information. Required: Briefly discuss the significance of prudence, substance over form and measurement uncertainty on the usefulness of financial information (6 marks). 3. The recognition criteria for the elements of financial statements in the Conceptual Framework refer explicitly to the qualitative characteristics of useful information. Required: Explain what is meant by recognition and discuss in detail the criteria to be met for recognition of a liabilities. (6 marks) Page 11 of 24