Question 3 Mangga Bhd is in the process of issuing its financial statements for the year ended 31 December 2020. In a meeting of Board of Directors held on 28 February 2021, the directors authorized the issue of financial statements to shareholders. Required: With reference to MFRS 110 Events After the Reporting Period, explain the required treatment for the above items by Mangga Bhd in its financial statements for the year ended 31 December 2020. (a) In a meeting held on 10 January 2021, the Board of Directors announced a final dividend of RM0.50 per share for the year ended 31 December 2020. (4 marks) (b) During the year, a customer had sued Mangga Bhd for damages suffered. At the year end, the Company's legal advisors suggested that the chance of an adverse opinion against Mangga Bhd was very low. Hence, no liability was recognized in the financial statements. However, on 26 February 2021, the court ordered the payment of damages amounting RM5 million to the customer. (4 marks) (c) Mangga Bhd suffered losses on their sales in the first week of January 2021 due to a decrease in the prices of their products. The reduction in price was caused unexpected launch of technologically superior products by its competitor. (4 marks)