QUESTION 2 (25 marks) The revision of Malaysian Financial Reporting Standards (MFRS) 119 Employee Benefits in June 2011 are expected to improve the comparability and understandability of information reported by corporations in their annual reports regarding employees compensation. This standard essentially prescribes the accounting treatment for the post-employment benefits, short-term employment benefits and termination benefits. Required: Based on your understanding of revised MFRS 119 Employee Benefits, respond the following: a) Discuss FOUR (4) categories of employee benefits. Provide at least an example for each of the categories the discussion. (16 marks) b) Determine the amount of asset (or liability) to be recognized in the statement of financial position, based on the following defined benefit plan characteristics. Justify your answer. c) Present value of the obligation Fair value of plan assets Present value of available future refunds and reductions in the future contribution RM 3,300,000 3,450,000 105,000 (6 marks) Explain the basic principle of accounting for short-term benefits. (3 marks)