Section B (Elective) - Question 3 (Total: 35 marks) (a) On 1 November 2020, Asdion Furniture Bhd sells 20,000 tables to Akea Bhd at RM100 per unit. Cost per unit is RM60. Akea Bhd pays Asdion Furniture Bhd when it obtains control of the tables. The sales contract allows Akea Bhd to return any undamaged tables within 30 days and receive a full refund in cash. Asdion Furniture Bhd uses the expected value method to estimate the variable consideration associated with the return of the tables sold. Asdion Furniture Bhd's past experience with sales of the tables was a 2% return by Akea Bhd. Asdion Furniture Bhd expects Akea Bhd to return 400 tables sold. On 18 December 2020, Akea Bhd returned 400 tables to Asdion Furniture Bhd and received a full refund of RM40,000 from Asdion Furniture Bhd. Required: Discuss how Asdion Furniture Bhd should account for the contract with Akea Bhd on 1 November 2020 and 18 December 2020 under the IFRS 15/ MERS 15 Revenue from Contracts with Customers. (Note: Show all relevant journal entries in your discussion) (20 marks) (b) On 20 October 2020, Loaf Bhd. (Loaf) signed an agreement to lease premises for its new shop for 10 years. The lease agreement requires Loaf to restore the premises to the original condition at the end of the lease. As at 31 December 2020, Loaf had already incurred RM500,000 in renovating and decorating the new shop. Loaf estimates that it will incur RM75,000 to restore the premises to the original condition. The board of directors of Loaf decided to close one of its branches in Sunway City. A board meeting was held on 1 October 2020, a detailed plan for closing down the branch was presented to the board. The plan was formalized and approved by the board at the meeting. On 5 November 2020, notices of branch closure were sent to customers, suppliers and staff. On 31 December 2020, Loaf estimated that the cost of closing the branch was at RM300,000 including staff retraining of RM60,000. The plan was implemented in January 2021. This branch was operating from a building that Loaf had leased under an operating lease until 30 June 2021. The operating lease on the building is non-cancellable. The annual rental is RM240,000, payable in advance. Required: Discuss the appropriate accounting treatment for the transactions that occur in Loaf in accordance with IAS 37/ MFRS 137 Provisions, Contingent Liabilities and Contingent Assets. (15 marks)