(v) On 30 June 2020, the accountant realised that the development cost of RM500,000 incurred in December 2019 had been expensed off as administrative expenses. He also noted that the development cost will derive future economic benefit to the company and met the criteria for capitalisation under MFRS 138 Intangible Assets.

(vi) The investment held by company comprises of 2,000,000 ordinary shares in GoodGloves Bhd which is measured at fair value through profit or loss. The shares were acquired by the company during the year. As at 30 June 2020, the fair value of one unit of GoodGloves Bhds ordinary shares was RM6.90. This value has yet to be reflected in Nobita Bhds financial statements.

(vii) To finance the acquisition of a new factory building, Nobita Bhd issued 3,000 convertible loan stocks on 30 June 2020. The loan stocks have a three year term, and are issued at par with a face value of RM1,000 each, giving a total proceeds of RM3,000,000. Interest is payable annually by June each year in arrears at a nominal annual interest rate of 6%. Each loan stock is convertible into 250 ordinary shares of RM1 each at any time up to maturity. When the loan stocks were issued, the prevailing market interest rate for similar debt without conversion option was 10%. The issuance of loan stocks has not been recorded in the book.

Year 6% 10% 1 0.9434 0.9091 2 0.891 0.8264 3 0.8396 0.7513

(viii) The Company was under litigation when one of its employee sued the company due to serious injury at work. Hence, a contingent liability was recognised as at year end. However, on 3 July 2020, the case came to court and the judgment was in favour of the employee which required the company to pay RM500,000 for the damage.

(ix) A class of inventory of company has been valued at RM280,000 when the net realizable value was RM325,000. On 1 July 2020, the inventory was sold only at RM265,200 due to the recent product introduced by a competitor.

(x) The directors have estimated that the income tax charge for the year ended 30 June 2020 is RM1,033,000, excluding the deferred tax charge. The deferred tax provision as at30 June 2020 is RM4,105,000.

may get the accounting treatment and work way for the question please.