Question $2$

i$.$You found that the company has not fitted the smoke filters to its factory in Shah Alam.

According to state legislation, an entity is required to fit smoke filters to its factory. It is

estimated that the cost to fit smoke filters is RM$300,000.$ Discuss whether or not the

smoke filters be recognised in the company's account as at $30$ June $2023.$ The financial

year end for the company is $30$ June.

$(7$ marks$)$

ii$.$The Managing Director has proposed to the board of directors the share compensation

plans to employees. Provides five reasons to support the share compensation plans to

employees.

$(5$ marks$)$