QUESTION 2

Followings are unadjusted balances of payables for Best Benor Bhd (BBB) as at 31 December 2018.

Accounts	Balances (RM)
Accounts payable	18,000
Notes payable	438,000
Salary payable	45,000
Unearned service revenue	56,000

Additional information:

1. On 13 December 2018, the company announces bonuses amount RM24,000 allocated to its staff. The bonuses will be paid on 5 January 2019.
2. Consultation service, which BBB has initially agreed to perform on 25 January 2019, has been performed on 25 November 2018 as required by the client. The payment of the service amount RM56,000 has been received on 1 October 2018.
3. Accounting record as at 31 December 2018 shows that the amount of RM32,000 needs to remit to the Employees Provident Fund (EPF). In practice, BBB remits to the EPF on the second weeks of January of the following year.
4. The salary payable is regarding the compensated absences by it staff that is on medical leave.
5. 80% of the notes payable are due on 2025.
6. All of the accounts payable are due on 2019.

REQUIRED:

1. Determine the amount of current liability and non-current liability as at 31 December 2018.
2. Para 3.3.1 of MFRS 9 Financial Instruments mentions about derecognition of liabilities. Briefly explain the treatment for derecognizing liabilities in accordance to the MFRS 9 Financial Instruments.