QUESTION 2 Aman Damai is an ecotourism company that provides tour packages. They are currently preparing their annual financial statements for the year ended 31 Dec 2021 and have to make several financial accounting and reporting decisions for the following issues a. On 1 January 2016, an asset was purchased for RM100,000 and a remaining useful life of 10 years, with a nil residual value. The asset is revalued on 31 December 2019 to RM50,000 and the loss is recognised in profit or loss. The asset is depreciated using a straight-line method. Then, on 1 January 2021 when the remaining useful life is the unexpired five years, the asset is revalued to RM60,000. They wonder whether they can revalue upwards the asset value and how much they should recognize for the depreciation. b. Aman Damai hired a firm to redesign their website and all promotional materials for RM200,000. The directors authorised this campaign on the basis of the evidence from the firm that it would create RM1 million of additional profits over the next two years. The directors wonder if they can capitalize the cost of the design work and amortize it over two years. c. Aman Damai has a contract with a university for their orientation programme covering 2 weeks activities three times a year. In 2021, they have conducted twice but during the second exercise one of the students suffered an injury and the university cancelled the contract. The contract states that the party who terminates the contract is required to pay damages. However, the university claims that it is the fault of Aman Damai that the contract needs to be terminated. The legal department in Aman Damai is of the opinion that Aman Damai is not at fault, as such it is the University who has to pay the damages. At the year end, the matter is not yet resolved. d. During the year end, Aman Damai was running a tour that starts on Dec 28th 2021 and ends on the 5th January 2022. The participants paid a deposit of 50% and will pay the remaining 50% at the end of the tour. Required: For each of the above situation, discuss the accounting treatment. (5 marks x 4 scenarios) (TOTAL: 20 MARKS)